Setting up a business is a dream for many people. Making your way in to the business world and setting up everything with your own hands is a great thing to do and not many are able to achieve that. If you have finally decided to start your business venture, here are five things you must do right away.
- Research Your Business Idea
The first thing you should do is analyzing how will your business idea be perceived by the market. Look around, perform competitive analysis and instead of wasting six months doing the business and realizing it’s not going to work is not smart. So, get the basics out of the way right now, search your business idea, its sector and decide if your idea is good to go out in the market or not.
- File the Paperwork
Once you have decided on the business idea, start collecting the required paperwork for registering your business. This is quite a cumbersome and time-consuming task; hence you must start working on it right away!
The next step should be getting things on track and organizing them. Business plan, financial model and operational plan should be laid out now. You should also account for the resources needed and how you will be acquiring them. Everything must be planned and laid out carefully, ready for execution.
- Determine Sources of Funding
Once all is set, you now need money to begin doing everything. Start thinking about how you will do it and where will the required funds come from. Pitch your idea to investors, go for crowdfunding or try getting a loan on your own – whichever one works the best for your case.
- Get a Key Person Insurance
Owning a business, you need some financial security to protect the assets, and in most cases your employees as well. A key person insurance is a corporate owned life insurance that insures the employer against any incapacitation or death of any key employee. It is used by both small partnerships and large businesses.
If a member of your company becomes permanently impaired/disabled or dies, the key person insurance is paid. The payment is usually made as a lump sum benefit up to the limit of policy and is used to reduce the financial burden the business must be facing following the loss. It is particularly designed for a business protection rather than for an individual person.
He individual will be covered for either of the following or a combination of these depending on how you design your insurance policy:
- Life Insurance: Covers incase the key person dies.
- Permanent and Total Disability Insurance: If the key person has faced a permanent disability that may be loss of sight, loss of limbs or any such situation that makes them unable to work again.
- Trauma Insurance: If the key person is diagnosed with a critical illness like a stroke or cancer.
Now that we have discussed all the essentials you must do before starting your business, start planning and get down to doing the above, as starting a business is not an easy task and you may have to perform many all-nighters!