5 Key Considerations for First-Time Business Owners

If you are looking to start a business for the first time or already have one, then you should use the right approach to ensure you avoid common pitfalls and instead create more profits. To do this, you need to consider a few key areas. These five considerations should be at the top of the list to ensure you are as successful as possible in the early stages of your business.

Legal Matters For Startups

A legal entity will not only make your business official but also limits your personal liability. A good business lawyer will help you incorporate your business. They can also create any needed agreements for your business to work with clients, customers, employees, independent contractors, partners and vendors. If money is tight then consider using a paralegal or subscription legal service like Legal Shield for wherever they can provide services, and then use your lawyer only when you need advice or representation.

Accounting Matters For Startups

You aren’t going to be an expert in all areas, so it is important to find those who can help you. New business owners need to understand basic accounting principles and bookkeeping. Take some time to find a good business accountant who will keep you on track and help make sure you’re getting the best tax benefits for your business. One of the reasons you want proper accounting set up for your business is so that there is no commingling of funds between personal and business expenses.

Sales and Marketing For Startups

If you don’t invest in your brand, it is impossible to grow it. Many business owners make the mistake of not putting money or time into sales and marketing. However, if you invest just a little bit, you can reap major rewards and scale up faster than you thought. All startups need a good logo, a good business card and a good website. If your starting budget is low you can also try hiring a salesperson who works on commission only, that is if your niche is one that requires a sales person. The point of sales and marketing is to convince people they need you, so don’t slack off in this area.

Hiring

The people you hire determine a lot about the success of your business. If you hire the wrong people, they can be lazy, unmotivated, or even rude to the customers. They are the front facing part of your brand, so this can be a killer to your reputation. Make sure you use screening methods like background checks and drug tests, so you are only getting the most qualified candidates to work for your company.

Compensation

While you won’t be able to offer everything that you want to your employees right off the bat, you still need to make sure that you compensate them properly and that you start creating a company culture that fits with what you want in the future. The way you start is the way you will grow, so make this a priority from the beginning.

Other Considerations

Proper legal, accounting, marketing, and service operations are a necessity for all businesses regardless of your niche or industry. Additional considerations could also include security, insurance, and vendors which complement your business.