Owning a small business comes with its fair share of challenges, from financial and operational risk, to competitive and compliance risk. As a business owner, you’ll likely find yourself doing more than a single job and face no shortage of challenges. Use these small business tips to help make your new small business a success.
Tips for Starting a Small Business
There are lots of things to be done before you can open the doors to your small business. Everyone will offer their small business tips and advice, but there are a few non-negotiables when it comes to getting your business ready for launch. Use these tips to position your small business for success.
Find Funding for Your Small Business
Many small business owners need funding before they can successfully bring their dream to life. It is difficult to procure equipment or products before you have a steady revenue stream. Before you can open for business, you’ll want to decide whether you plan to self-fund, engage with investors, or get a small business loan.
Determine your business structure
The legal definition of your business will affect the way you run your business. Your business structure can impact your finances, operations, and potential liability. Common business structures include solo proprietorship, partnership, limited liability corporation (LLC), and corporation. Choosing the right structure can help ensure you can be profitable and reduce your business risk. Check out this resource from the U.S. Small Business Administration to learn more about business structure options.
Choose Your Small Business Name and Register It
Do a little bit of research to make sure your potential business name has not already been taken. If it’s already registered, you will be unable to choose that name. It’s also a good idea to consider any associations or connotations associated with your small business’s name. Once you have chosen your business name, register it with the federal and state governments to prevent others from using it also.
Get Your Small Business Licenses and Permits in Place
Depending on what type of small business you are running, you could be required to get permits or licenses before you can legally operate. It’s essential that your small business remains compliant. Check out this list for more information about federal and state licenses and permits.
Get Your Tax IDs
Your small business will be required to have an employer identification number (EIN) which you will need to manage the finances in your business and pay your taxes. It’s free to apply for and allows you to pay employees, files taxes, and withhold taxes on income.
How to Manage Risk from a New Small Business
All businesses come with a certain amount of risk. It’s important that new small business owners take steps to mitigate that risk as much as possible. Use these tips to manage risk in your small business.
Have a Backup Fund for Unexpected Expenses
If you’re a new small business owner, expect the unexpected. You will undoubtedly face challenges and having a backup fund to fill the gaps can make all the difference. Build yourself in some financial padding that you can draw from in the event that unanticipated expenses come up—because they will.
Take Care When Hiring
Who you hire is very important. Making sure that your new hires are qualified and a good fit for your company can go a long way towards reducing risk to safety and making sure your small business is fully equipped for the next challenge.
Keep Your Reputation in Good Standing
Your reputation matters because your small business customers want someone they can trust. Keeping a positive reputation will help build a loyal customer base and reduce your business risk. Deal with customers fairly and consistently, and limit any negative behaviors in your business.
Limit Potential Hazards in Your Space
Your business might be small, but it doesn’t need to be packed with hazards. Remove any obstacles and potential hazards from your store to reduce liability. Make sure to remove obstacles from walkways, put up signage to alert customers of hazards, and keep your areas free from clutter.
Choose the Right Insurance Policy
The right insurance policy makes all the difference when facing small business risk. Insurance policies are there to protect your business against risk when you are not in a position to do it on your own. Talk with your insurance agent to make sure your policy fits all the potential small business risks you may face.