Anyone who is willing and able can start a business but not all business owners thrive and grow after they open. This is because there are certain factors they don’t know or choose to overlook before opening a business.
Running a progressive and fruitful business requires you to have certain key factors present at the very beginning. This is essential to have since it makes up a “concrete business foundation” that all starting businesses need before growing.
So if you want to know what these key factors are, down below is everything you need to know about it!
Do your research
Of course, it’s vital to know about the market you’re getting into. Knowing its ins and outs, pros and cons, risks and so on can help you have a better idea of what you’ll be facing later on. Plus knowledge is always key, especially in business – the more you know the stronger you are.
Depending on what industry you decide to get into, do your research and learn everything you can about it. Try to know your competitors, the standard pricing of services and products, what products are currently trending and so on. With knowledge, you’ll always have the upper hand.
Have a business plan
Before getting partners, renting out a space and hiring staff you first need to come up with a business plan. Every business owner needs a map to guide them throughout their business journey, that’ll help them know what to sell, how to sell and who to sell.
A business plan acts as a roadmap of how your business should run to reach your monthly or annual goals. And without one, you’re running a business aimlessly which can potentially lead to bankruptcy.
What does a business plan consist of?
An efficient and functional business plan will consist of the following: (1) a business objective, (2) a competitive analysis, (3) a target market, (4) a business structure (5) a marketing plan, (6) products and services plan and (7) a financial analysis.
Your business plan must contain these 7 elements to secure a stable and working business plan.
Have a concrete mission
Before making a big commitment such as running a business, you need to have a strong mission. Starting out won’t be so easy especially when it comes to getting recognised. That is why knowing your business’s purpose is essential to how you should run your business.
You can make wise decisions to extend your services and markets in the future while maintaining unity by being aware of the strengths, unique characteristics and purpose of your company.
Get business insurance
One of the things starting businesses tend to overlook is insurance. They view business insurance as an “additional expense” that isn’t as vital as other things, but the truth about insurance is that you should be happy not to need it because using it would require something terrible to occur to you first.
But since risks and dangers are always there and can happen anytime, it’s best to be prepared and have the protection your business needs. Because even if you take precautions and pay close attention, some risks are beyond your control.
So consider getting business insurance! This can guarantee your business’s safety, as well as your staff and customers. If you still don’t know what business insurance can cover, here’s a list:
- Property damage – Any losses brought on by accidents and natural disasters are covered by this policy.
- Burglary/theft – This covers any damages your company has suffered as a result of items, papers, or equipment being stolen.
- Liability – This covers the legal responsibility for harm or damage brought on to a client or a third party.
- Business interruption – This protects you against any damages your company may have incurred as a result of a business interruption, such as a power outage or a lockdown in the local area.
- General property – protects portable goods you bring outside of your premises against the dangers of material harm.
- Electronic equipment – covers the costs of losses to electronics or computers brought on by mishaps, defective products, natural catastrophes, etc.
- Financial losses – This includes money that was taken while it was in transit or during business hours on the property.