According to research, over 21% of startups fail within the first year, while 50% fail within five years.
If you’re just starting out, these can be scary statistics. However, so much goes into play when creating a startup that all you need is a great plan and a working strategy.
The first thing you need is a business startup checklist that will guide you every step of the way. In this guide, we’re going to discuss everything that should be on a business startup checklist for every small business owner. We’ve got all of it right here, so read on to find out how your business can become perfect.
A Business Idea
It sounds self-explanatory, but before doing anything else, you need an idea for a business startup that you would like to run. Every business idea is good, but think about what you can do best in terms of your motivation, skillset, and social status.
It needs to be something that you are sure the market is ready for, or it will become really hard to develop into a successful company.
Nowadays, just about anyone can have a business idea, but with competition being so fierce, getting it to fruition becomes the issue. However, with all the valuable resources on the internet, you’ll find everything about potential markets and competition that you need.
If you don’t really have a good idea yet, there is no need to worry – every good entrepreneur starts with a bad idea they improve on along the way!
Company Domicile
After you’ve got your business idea, it’s time to establish a company domicile. This is the best location for your new company and where you will be conducting your operations. Most states have different requirements, so there are some things that might need to be taken care of before actually establishing the company.
For instance, some countries allow you to conduct business in their territory even without having a company domicile there. You should do your best to understand all the requirements of your chosen country so that you don’t miss anything.
Moreover, if you are planning on expanding soon, think about where you would like to have your business domicile then.
The Company’s Objective
A company has only one objective — to make a profit. However, you need to stay realistic about your expectations for the first year or so, at least until you actually get the company established. It’s a good idea to set some early goals and then take them one at a time while continuing to grow your business.
Building Your Team
One of the most critical aspects of every company is its employees. It’s true that you can do all the work yourself, but it’s always much better when you can delegate.
It’s crucial to find people who are compatible with your business idea and complement your skillset so that work is actually enjoyable, not just another job. It really takes time to find the right people for your team, but in the end, it will be totally worth it.
As a business startup, you are probably going to be limited by budget constraints. You can’t hire somebody for every single role, so you need to outsource the work that doesn’t actually add value to your company or can’t be done in-house.
When starting out, most people don’t expect to build something huge and gain employees working for them. It happens as a result of doing business. Finding the right people is hard because you need to find people who are willing to work hard but are also competent enough to get the job done.
You have to be very patient and need to know all the legal requirements of hiring someone. It’s also vital that you get them insured because you will be held responsible for it if something happens.
Branding and Marketing
Marketing is a crucial aspect of your company’s success, but it can also be one of the most difficult ones to master. You need to put some thought into how you’re going to market your product or service and then test every single marketing channel for effectiveness.
There are so many channels out there that it can get overwhelming really fast, but you need to do your best to try out every single one of them. This is the only way for you to find out which method will work best for your company and reach your target audience. You need to invest both time and money into marketing because that’s how it works.
A lot of companies make the mistake of not investing enough time and effort into their marketing, which results in poor performance. If you don’t give it a hundred percent, nobody else will.
Get the Best Business Laptop
Laptops are a great advantage when creating a business startup. Whether you’re blogging, working on your business’ website, or making YouTube videos to promote it. There are many reasons why you need the best business laptop when starting a business.
The number one reason why people start their own business is to have more freedom. By having a laptop, you are not tied down to one place. A laptop allows you to create your startup at home before you can set up shop at an office.
Besides, you also need a high-quality laptop if you’re starting an online business. With a laptop, there are no extra bills that need to be paid because it can be done from anywhere. Take a look at some of the best machines and get yourself a brand new laptop.
Managing Finances
As a small business owner, you should have some sort of budget planned out from the start. If you don’t do this, it will be really difficult to manage your finances and meet business objectives. It’s also important to mention that marketing expenses are the most significant for startup companies, so you really need to include them when planning your budget.
If you decide to outsource some of the work in your company, you need to account for this as well. Basically, all money that goes into your business needs to have a clear path of its use and what you plan to buy with it. Revenues may not meet your expectations from time to time, so having some sort of buffer might be necessary.
Cash flow
Cash flow is the most important thing in any company and is basically the number one reason businesses fail. You have to have a clear understanding of your cash inflow and outflow because that’s what makes or breaks your business. Your entrepreneurial success depends on it.
When you first start, you’ll need a little bit more time until you can see profits from sales. That’s okay, though, because that’s how business startups work. However, remember to always plan ahead and don’t get caught up in the hype of starting something new.
Accounting
When it comes to business, cash flow and accounting go hand in hand. You need to keep track of your business transactions, and that’s where accounting comes into play.
There are a lot of great options out there when it comes to managing your finances. This way, you can really focus on the important things that only you can do. It may be a lot better to outsource your accounting because it takes a toll on you.
Accounting, bookkeeping, and doing taxes are some of the most confusing, if not utterly frustrating, parts of a business. If you’re not good at it, hire a professional, and you’ll have more time to work on growing your business.
Taxes
Talking about taxes, if you want to stay in the good graces of the law, you need to pay your taxes. Simply not paying them can get you in a lot of trouble, and you’ll have to pay fines and penalties. The thing is, taxes tend to pile up when you’re not paying attention.
If you’re not good at dealing with numbers, it might be best to hire an accountant or delegate this task to someone trustworthy. There are a lot of professional freelancers that could be willing to handle the task for a fraction of the price.
Protecting Your intellectual property
Most people don’t realize this, but all the work you do actually belongs to you. You can patent your ideas and use them as leverage when negotiating new deals with other companies.
All of these things are really important to make sure that no one steals your idea while you’re working on building it up. The same can be said for your product as well.
Getting Funding
This is a really important part because you need to find investors that will invest their money into your business. Building it from the ground up isn’t easy, and this way, they can help you grow faster.
It’s generally more difficult, time-consuming, and expensive to get startup funding than it is for an established business. One of the best ways to secure startup capital is through friends and family. Most startups will not be able to approach venture capitalists or angel investors without an impressive track record or already having secured investments.
Another option is to use crowdfunding sites like GoFundMe or Indiegogo. While these are not traditional forms of investment, they can be a good way for founders to demonstrate demand before taking on additional funding.
There are also many grants available for startup founders who are able to prove the positive impact their business will have on society. Asking for a grant is very similar to asking for a loan, but the applicant must show that they will not be able to use outside investment.
Creating a Successful Business Startup
If you’re looking for the ultimate business startup checklist, this is it. There is so much on the list that you need to tick, but it’ll ensure that you’re off to a great start.
Other than that, if you loved our post, please peruse more of our website because we have so much more for you.