Anyone who starts a new business has a good reason for it. For some, it is the sheer necessity to get out of unemployment finally. Others realize a long-cherished dream by setting up their own business, while others have been involved in the topic from an early age because the family business has always been and is the number one topic at home. There are specific start-up steps that every founder must take to start a business.
1. Determine if Your Business Idea Sustainable
Testing a business idea for functionality is not that easy. Some different approaches and concepts are suitable for one entrepreneur but completely unsuitable for the other. Suppose you have insider knowledge of the industry in which you want to start your own business. In that case, you already have a good starting position to assess the functionality of your business idea.
2. Decide if it’s Something You Really Want to Delve Into
If you were not born with the entrepreneurial gene, the question of whether starting a business is the right thing for you should be central. Before you jump into the deep end, you should familiarize yourself with the subject. Use every opportunity to talk to people who are already self-employed. Get books from entrepreneurs who talk about their careers and read through them as preparation. You will notice early on whether you like the topic or are scared of the typical start-up and entrepreneurial problems.
3. Acquire Start-Up Knowledge
Even if it feels like a journey into the unknown, you can acquire special start-up knowledge in the run-up to setting up a business and thereby transform the uncertainty into a predictable future. There are thousands upon thousands of founders who have followed a similar path before you. Take advantage of free and chargeable information events and advice. It will help if you take advantage of the offers to familiarize yourself with the subject matter. During the event, you will find out which areas you urgently need support and where you already feel safe.
4. Create a Business Plan
You shouldn’t see a business plan as a written script for your company but rather as a framework you operate with the help of the researched data. Write a business plan, even if you don’t want to ask the bank for financing. And above all, write it yourself. However, if a loan is needed, the support of an experienced start-up advisor or tax advisor can be beneficial.
The experts help to calculate the necessary start-up capital accurately and to limit the capital requirement. They also know industry key figures and can tell you whether the expenses you have estimated for office equipment or the inventory are within a known range or whether their ideas are entirely different.
5. Taxes and Income Tax Office – Duties and Regulations
You are now an entrepreneur and therefore should comply with the requirements of the applicable tax laws. The tax office doesn’t care whether you do it alone or with tax assistance. It is important that you comply with your local tax laws and provide the tax authorities with what they required by law.
6. Insurance and Provision
The moment you make your business start-up official by registering with the tax office and other authorities, you must cover the risks that arise. On the one hand, some risks directly affect the company, such as burglary, fire, machine damage, or even negligence, leading to you being confronted with liability claims that you cannot pay out of your own pocket. This could endanger your existence so much that you go bankrupt before it even starts.
7. Entrepreneurial Tasks
Once the hot phase of setting up a business is over, there are still no calm waters in many cases. You have to familiarize yourself with many areas from scratch. Personnel issues, controlling, acquisition, and press work are a lot to learn. To be an entrepreneur means keeping yourself up to date, continuing your education, and taking advantage of the right advice.
Just as a top athlete needs a trainer to be among the very best, entrepreneurs need mentors and advisors to take them to the next level. Exciting areas of corporate management such as organization and process optimization, receivables and payment management, and contributions to other company topics should help you familiarize yourself with your entrepreneurial tasks quickly.
8. Make Healthy Choices
At the beginning of a business start-up, many self-employed are completely alone with all tasks. You are an accountant, head of marketing and specialist in one person. Freelance workers in particular who perform creative, scientific, or intellectual work run the risk of overworking. Burnout threatens. The problem is that many self-employed people cannot delegate. If you add a certain degree of perfectionism and the inability to trust employees, it becomes challenging. Make healthy decisions for yourself and your company!
From day one, start-ups should consider how they want to build the company and how big it should be. For example, if you plan to use your own physical strength to pull up walls and cover roofs with a small team until you retire, you need administrative support in the office for the work that has to be done.
Suppose you see yourself in ten years’ time as the head of a flourishing construction company active throughout America. In that case, you will need a lot of employees for the construction sites, project planners, secretaries, accountants, human resources, marketing specialists, and many others. In both cases, you need to hand over tasks, sometimes more and sometimes less.