5 Tips for Starting a New Business

 

You’ve finally taken the big step of starting your own business. As an entrepreneur, you’ll quickly realize what puts the word “busy” into “business.” Between running unexpected errands, filling out last-minute paperwork, and making minute-to-minute decisions, your valuable time will be filled with all kinds of work. In the long run, it will pay off to take a step back and make sure you have some of the major issues in mind of running your business successfully.

Obtaining Operational Loans

Starting a new business can be quite overwhelming and not to mention expensive. If you are expecting to start up and run a successful business you most likely need to get some sort of loan. After all, the saying “it takes money to make money” is absolutely true.

When deciding to start a new business most new business owners will need to obtain start up or new operational loans to help them get their new business off the ground. The process of applying for new loans is fairly simple and many loan companies or banks now offer you the option of applying online. However, when new businesses apply for start up loans the bank usually requires you to have a business plan to present to them. You should shop around and find the bank that will give you the best interest rates, terms and fees. This should be one of the first steps in getting your business on the road to success.

Maintaining Certificates of Insurance

Certificates of insurance are very important. Most new businesses aren’t as familiar with this as they should be, however, it is recommended that you get insurance certificates from anyone that completes any work for you, and this can include vendors or contractors. You do not have to deal with companies that can’t or will not provide you with proof that they are in fact insured. And this will provide you with the peace of mind that if something does happen that you and your company are covered. Additionally, some companies will track your certificates for you, leaving you more time to concentrate on the business itself.

When and How to Start Hiring

Depending on what kind of business you are starting, you will probably not need as much help at first. But, when the business begins to grow you may need to hire some help. The hiring process doesn’t have to be too difficult. It may seem overwhelming to meet and interview and ultimately decide who will fit exactly what you need. This will help you get to know the person you’re interviewing better, and give you an idea of their personality so you will know if they will be a good fit or not . Also, you should make sure that you offer a reasonable salary as well as other perks that will get the potential employees attention, because if you offer them a great job they will be more dependable and less likely to quit. You don’t want to have a high turnover of employees–which can lead to added stress and extra work for your current employees.

Unexpected Costs

Don’t expect to start a new business and think there will never be extra costs. You will run across unexpected costs more than once. This is nothing to be too stressed about, just try to be prepared by having some extra cushioning in the bank just in case this does happen. Keeping extra money on hand means that you can recoup from the unexpected expenses a little easier.

When to Expand

The obvious reasons to expand your business are to get more customers so you can make more money. This is where having great employees come into play. You will need to be able to depend on them, as well as possibly having to take out more loans if you need them. You should make sure that you advertise well and in the right locations that will get your potential customers attention. You may also want to seek help from a business counselor to walk you through the best options of how to successfully expand your business.

 

Drew James is a content producer for myCOI. When he’s away from the screen, you can find him perfecting raised bed gardening, and running the urban trails of Indianapolis.