Right now, there are hard times ahead for most start-ups, but there are also plenty of opportunities where business closures have opened the door for new competitors to enter. Those still with capital in the bank ready to invest may find themselves entering business markets where their predecessors ran out of cash and exited the industry. That said, there is still an air of uncertainty in regard to how world economies will hold up in 2021 and beyond.
In this brief guide designed especially for business start-ups, we look at some key points that will give new companies a better chance of success!
Point 1: Get All Correct Insurances At The Best Rates
You should not and cannot avoid insurance when you start a new business. If your business is working under legally bound contracts, then you have to 100% make sure you are covered. This includes contracts with the businesses you work with, as well as the contracts you have with your employees. General liability insurance, which also comes under the name of commercial general liability insurance, will cover your company in case it is liable for damages.
General liability insurance covers legal costs and any fines your business needs to pay. Now you may think this will not happen, but there are 100s of companies gone into liquidation or filed for bankruptcy because of legal disputes. Quite often the issue at hand is down to an employee, and this makes liability insurance all the more important.
Point 2: Be Wise With Your Choice Of Office
When we say be wise, we are being quite flexible with this statement. The most sensible thing you can do when your business is new is to rent an office with a modest monthly rental cost. With the possibility of hard times ahead in most world economies, wherever you are in the word, the best way to start out is to avoid going overboard when it comes to renting an office.
With modest sized rental overheads, should things go wrong, you should also make sure your accountants can get help you get your hands on at the very least 6 months’ worth of rent. Even better, if they can negotiate a flexible deal on your office such as a 6-month recurring contract rather than 1 year, then even better. You should pay less deposit, and if things do not go your way, you have an exit clause.
Point 3: Work Remotely As Much As Possible
If you can get your employees setup remotely, then you can rent a smaller office. The benefits are that your business reduces its overheads, freeing up capital for areas such as sales, marketing, and employing a highly skilled workforce. As an investor in the business, this also reduces travel costs, while you should also be aware some employees may need some compensation for electricity and internet. These are all points you will need to thrash out in their employment contract.
Remote working is not just for lockdown, it is something that businesses should seriously consider. The cost saving for the company and employees can really make a difference. Happier employees with less travel have more surplus cash and more free time on their hands because there is no travel time being taken out of their day.
Point 4: Hire An Accountant
Hiring an accountant is vital if you want to make sure all taxes are paid correctly for your start-up. Accountants will also take care of employee taxes, national insurance, or social security your startup must pay. Plus, the accountant will make sure important premiums get paid on time such as the above mentioned ‘general liability insurance’, which you definitely do not want to let slip to leave your startups liable.
If you try to deal with all the startup finances yourself, this just adds pressure to you as a manager or business owner. You could be doing other more useful tasks that help the business deliver efficient services to game a good reputation, and to conjure up new business through sales and marketing activities. Those that end up also taking on their own finances are susceptible to making business critical mistakes that could cost the startup company dearly in the long run.
Start-Up Company Success Starts With
You It's a tough economy out there. without the proper strategies and tips, your start-up business could get lost in the shuffle.
