Starting a new business can be daunting. With all the advice and websites out there devoted to the topic, it’s hard to know which advice you should heed and what you should ignore. To make things simple, we’ve compiled a list of six essential strategies for getting your new business up and running with the least amount of hassle and risk.
1. Solve A Problem
One of the best ways to come up with a winning business idea is to design your product or service to solve a specific problem. By fixing a problem, you’ll have a solid customer base right out of the gate, who won’t need much selling, especially if your solution actually works. If possible, create your business around a problem you’ve faced yourself, so you thoroughly understand and trust the value your company offers.
2. Just Start
While it may seem counterintuitive, it’s often better to launch your business before you feel like your product is 100% perfect. Delaying your start is often an unconscious way of procrastinating. The most effective way to learn is to get your product into people’s hands or your service into people’s lives and see how they like it. Just keep in mind, you should be prepared to fail, learn from your mistakes, and keep iterating until you get things right.
3. Keep It Simple
When you come up with a great business idea, it’s tempting to imagine all of the possibilities of where it might go. But you should narrow your focus and costs by making your solution as effective as possible, without getting too complicated. There will always be time once your company is up and running to add additional features.
4. Be Passionate But Self-Aware
The most successful business ideas are ones that are near and dear to your heart. Focusing on something you’re passionate about will help keep you motivated to do whatever it takes to succeed. That alone won’t guarantee success. Because it takes a certain mindset to endure the rigors of entrepreneurship, so unless you’re comfortable taking risks, learning from failure, and working harder than you ever have before, you might want to rethink things.
5. Cover Your Assets
Although a sole proprietorship is the quickest, easiest, and least expensive way to structure your business, this route provides zero protection for your personal assets. If your business is set up as a sole proprietorship and your company goes into serious debt or gets hit with a costly lawsuit, your home and life savings could be at risk. Rather than taking the easy route, invest the time and money to set your business up as a limited liability company (LLC) or corporation. Both entities not only offer you liability protection for your personal assets, but they also come with significant tax-savings benefits as well.
6. Establish A Solid Foundation
Starting a business involves establishing the proper legal, insurance, financial, and tax foundation to support your vision and goals. At the very minimum, you need a legal entity (in the right state and of the right type), some basic legal agreements, and intellectual property protections like copyrights and trademarks. You also need basic insurance coverage, financial tracking and reporting systems, and tax planning. You may be able to do some of this yourself, but to ensure you get things 100% correct, consult with us at Truest Law.
We offer exactly this kind of support with our LIFT Start-Up Session. Whether you’ve yet to open your doors, have started a company but haven’t set up your LIFT systems yet, or have some systems in place but you aren’t sure they’ve been set up correctly, contact us to schedule your session.
Startups can be risky ventures, but with the proper planning and support, you can beat the odds. Contact us today to get your new venture started off on the right track.