Start Your Business for Success-The First Time
You are considering starting your business and know you must attract and retain customers while remaining in control. Determine how much money you need to start your business. Before you hit the ignition button and start your business, ask yourself these ten questions to ensure all systems go for launch.
Take this Quiz before you start your business and save yourself a lot of grief.
1. Did you look at all angles preparing for success or failure?
2. Do the potential benefits of the deal outweigh the risk?
3. Have you taken steps to keep your investment as low as possible?
4. How will you operate your business as a Sole proprietorship, partnership, limited liability company (LLC), or corporation–what makes sense for your business?
5. Is your investment protected by a loan against the business assets?
6. Have you decided on the maximum liability you will accept as a guarantor of business debts?
7. Have you protected yourself to reduce liability on personal guarantees?
8. Have you decided on the assets you will own in your name rather than under the business?
9. Have you protected your assets by judgment-proofing yourself?
10. Have you reviewed these points with your attorney and accountant?
You would have a lot of work if you answered “no” to the above questions! It pays to prepare for the worst. Then you can spend all your time planning and working for success. One other question you should ask yourself. Am I starting my business to help others? Or am I starting my business to make money?
Following further questions, you must find the answers when you start your business for the first time.
Have you made your financial plan?
. Write your business plan that should include the financial needs too.
Are you ready to implement a suitable financial system for your business
Set up a budget and a cash flow to monitor your company’s finances when you start running the business.
Pricing plan.
What are the biggest challenges to starting a business?
The answers are:
- Shortage of capital and cash flow
- Having a good business plan
- Coming up with a great product or service
- Sticking to it
- Working more than you expected
- Getting through the frustrations of being constantly rejected by customers
- Hiring good employees
- Knowing when to fire bad employees
- Having to wear so many hats
- Managing your time
- Maintaining work/life balance
What is your plan to pay tax at the end of the first year of your business? Do you know that you must tax yourself and your business separately? In that case, you must ensure that all your records to keep in order so that you can hire someone to prepare your final accounts and the tax calculations. If not, you might pay more tax or make an underpayment that affects your business later. It would help if you asked your accountant about the allowable expenses for the tax deductions.
You must ensure that you learn the answers to all the questions before getting into the business to save you and your business from all types of problems.