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For many, starting their own business is their dream. Some people have a passion they want to pursue, some see in a need in the marketplace they can meet, while others prefer to work for themselves.
Regardless of the reason, making your dream a reality is much simpler than you think.
If you’re ready to take the plunge, here are 7 key steps to consider:
1. Refine Your Idea: Create a Business Plan
Writing a simple business plan will help refine your ideas about what will set your business apart, how it will operate, and where you see it going. This doesn’t need to be a full-blown plan, but a one or two page document can keep you on track.
Some elements your plan should include are:
2. Assess Your Finances
The secret to this step is being realistic. Ideally, you want to recoup your startup costs, cover your operating expenses, and show a profit in 30 to 90 days. However, you should be prepared for a long haul to help increase your chances of success.
Be sure to include licensing and permit fees in your estimates. Don’t forget that you will need business insurance to minimize the risks to your personal and professional finances.
3. Decide on a Legal Entity
This is the first step in creating your business. There are several types of business entity structures to choose from based on your business and risk profile. Consult your attorney and/or your accountant for advice on which structure best suits your needs. The next steps are acquiring the proper permits/licenses and registering with the tax authorities.
4. Get Insured
Business insurance may seem like something you can put off, but doing so places your business at risk. Property damage, identity fraud, theft, or even a lawsuit brought by a customer could end your dream in a heartbeat. If you plan to have any employees, plan on purchasing the appropriate workers compensation insurance.
Consult with an insurance agent who can explain different coverages available and advise you on which policies you may need.
5. Separate Your Money
Avoid mixing your personal finances with business funds. Once your business paperwork is in order, open a business bank account. This should take less than an hour at your local bank or credit union and helps avoid confusion when paying taxes and bills.
6. Choose Your Vendors
Once you find a location for your business, finding trustworthy third-party vendors for your company is essential to day-to-day operations. Vendors come in all forms ranging from Human Resources to business phone systems. Once they are in place, it is time to launch.
7. Grow Your Business
Now that your business is up and running, it’s time to bring in customers and watch your business flourish. Selective offers tools and tips to help brand your business, build your digital strategy, and helpful articles to help reduce your risk.
These steps are just part of the foundation of starting your own business. At Selective, we #thinkBIG about small business. Contact your Selective agent to ensure your business is protected. Don’t have an agent? Click here to contact a local independent insurance agent in your area.
Regardless of the reason, making your dream a reality is much simpler than you think.
If you’re ready to take the plunge, here are 7 key steps to consider:
1. Refine Your Idea: Create a Business Plan
Writing a simple business plan will help refine your ideas about what will set your business apart, how it will operate, and where you see it going. This doesn’t need to be a full-blown plan, but a one or two page document can keep you on track.
Some elements your plan should include are:
- Your vision: Where do you want your business go? Is your dream to keep it a small business or grow it into a larger company?
- Your mission: Unlike your vision, your mission should explain the "why" behind your business.
- Your objectives: What goals do you need to accomplish to make your mission and vision a reality?
- Your basic strategies: How are you going to achieve the objectives you have set? What actions must be taken in the short term to achieve your overarching goal?
- An action plan: List the smaller tasks required to achieve your stated objectives.
2. Assess Your Finances
The secret to this step is being realistic. Ideally, you want to recoup your startup costs, cover your operating expenses, and show a profit in 30 to 90 days. However, you should be prepared for a long haul to help increase your chances of success.
Be sure to include licensing and permit fees in your estimates. Don’t forget that you will need business insurance to minimize the risks to your personal and professional finances.
3. Decide on a Legal Entity
This is the first step in creating your business. There are several types of business entity structures to choose from based on your business and risk profile. Consult your attorney and/or your accountant for advice on which structure best suits your needs. The next steps are acquiring the proper permits/licenses and registering with the tax authorities.
4. Get Insured
Business insurance may seem like something you can put off, but doing so places your business at risk. Property damage, identity fraud, theft, or even a lawsuit brought by a customer could end your dream in a heartbeat. If you plan to have any employees, plan on purchasing the appropriate workers compensation insurance.
Consult with an insurance agent who can explain different coverages available and advise you on which policies you may need.
5. Separate Your Money
Avoid mixing your personal finances with business funds. Once your business paperwork is in order, open a business bank account. This should take less than an hour at your local bank or credit union and helps avoid confusion when paying taxes and bills.
6. Choose Your Vendors
Once you find a location for your business, finding trustworthy third-party vendors for your company is essential to day-to-day operations. Vendors come in all forms ranging from Human Resources to business phone systems. Once they are in place, it is time to launch.
7. Grow Your Business
Now that your business is up and running, it’s time to bring in customers and watch your business flourish. Selective offers tools and tips to help brand your business, build your digital strategy, and helpful articles to help reduce your risk.
These steps are just part of the foundation of starting your own business. At Selective, we #thinkBIG about small business. Contact your Selective agent to ensure your business is protected. Don’t have an agent? Click here to contact a local independent insurance agent in your area.
