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06/18/2019 By Jason Bean Leave a Comment

First Steps in Starting Your Own Business

Starting your own business is a great concept. Conducting business while engaging in activities you are passionate about, flexible scheduling, being your own boss, and selecting your employees are all great perks to entrepreneurship. However, there are some essential steps to follow in order to launch your brilliant idea successfully.

Determine if you are able and ready to start a business

To successfully measure if starting a business is the right move for you at the moment, it may be a good idea to break down and analyze your finances. Depending on the type of business you are looking to start, there may be a good amount of capital involved. If you don't have the cash on hand to jump-start your business, it may be wise to begin shopping around for small business loans. Your credit score factors into banks' decision to give you the funding you may need to finance your dream. Given how crucial this score can be to your success, it's essential to understand how this process works. Before this step, it is necessary to determine if your credit is up to par to even obtain a loan. Once you pull your report, you may find it necessary to raise your score before applying for this loan. Paying more than your credit card limit, reducing card usage, or consolidating your loans will all lend a hand in helping you raise your score.

Assess your business idea

Conduct research in your market to see what your competitors are up to. Determine areas within your business where you can expand or differentiate your product or service. This is also a great time to begin determining your target market, which is a part of your market research. Use SEO tools to help you decide who is buying products or using the services you are looking to provide. SEO tools will also allow you to monitor your competitor's online behavior, which will better help you to establish an online presence in the near future.

Build your business plan

Your business plan will help you give direction and may be a requirement when seeking funding from a lender. Before putting together your business plan, it is essential to identify who you are creating the layout for and who is intended to view it, whether that be a third party, financial institution, or partner. Once your audience has been established, outline your plan. Most business plans contain the following subsections:

Executive Summary
Opportunity
Market Analysis Summary
Execution
Company and Management Summary
Financial Plan
Appendix

Note: If you need more help creating your business plan, check out this business plan template from Growthink.com

Choose your business structure

Once you have developed a business plan, it is crucial to plan out how you want to structure your business. Do you need employees? How many? Will you need a store-front for your business, or are you able to conduct business online? Your business structure can help you determine the following:

How much you will pay in taxes
The licenses you will have to acquire
Your personal liability
Ongoing costs
Legal obligations

Get a handle on your personal finances

Saving your money and managing your bills will be an ongoing task once your business is up and running. Not only will you have your past debts and current bills to pay, but you will have to keep up with monthly statements for your new business and repaying the loans you've acquired in relation to your business. Opening up a mobile banking account for your company is a great way to help you separate business from personal finances. It is also a convenient way to track your finances and manage your money on the go, which will complement your new entrepreneurial lifestyle.

Build your support team

As a new small-business owner, becoming a leader may a big step up from your previous work, which makes it essential to have advice from someone who has already seen what it takes to be successful.

A mentor is a useful sounding board for any issues your company encounters. When you do start building your business advisory team, it's essential to also think about the specific needs of your company and the skills you need to maintain growth. It's also critical to make sure that everyone you seek advice from can provide you with constructive feedback that pushes you to succeed. The more people you have in your corner that are willing to support and advocate for you, the easier it will be to cultivate success in your business utilize your family and friends with accounting, finance, human resource, and legal backgrounds to assist you with any pertinent or concerning questions you may have as well.

05/18/2018 By Jason Bean Leave a Comment

Insurance Coverage No Business Should Be Without

You insure your home, now it’s time to insure your business. Whether you are a one-person shop or a corporate conglomerate, you must make certain you are protected against any foreseeable or unforeseeable incident. One thing goes wrong, and you could lose it all. You didn’t work this hard to build your entity to have it gone at the drop of a hat, so make certain you have all the coverage you need. Here is a list of insurance coverage no business should be without.

General Liability

The U.S. Small Business Administration explains that general liability insurance protects your business against a monetary loss for any number of reasons. Included under the general liability umbrella are bodily injury (slip and fall, for example), bond/judgment settlement, lawsuit defense, libel/slander, medical expenses, and property damage. Don’t go without this broad protection.

Commercial Property

If you own commercial property, including equipment and machinery, make certain to protect it with commercial property coverage. Much like your home insurance policy protects your home and its contents commercial property coverage mitigates damage and/or loss due to fire, theft, vandalism, and weather damage. If you need additional earthquake and/or flood protection, get it.

Home-Based Business Coverage

Entrepreneur magazine brings up an excellent point. Many home-based businesses forget to add business insurance to their homeowner’s policy. If you have business equipment in your home, such as computer equipment, fax machines, printers, and tools or other machinery, you need to secure additional coverage to protect them. Make certain your home-based business is protected in all areas.

Professional Liability

If what you do could directly affect your client, you may need professional liability insurance. Also known as errors and omissions insurance, professional liability protects you and your business against your own mistakes. If you’re a CPA who makes a costly error on a client’s tax returns, you may be held liable for the mistake. This insurance protects you against your resulting financial loss.

Workers’ Compensation

No business should be without workers’ compensation insurance if it is required by law to carry it. For example, Washington state law requires nearly all employers to carry workers’ compensation coverage, so Seattle business insurance packages should include this. Check with your state’s insurance commission to see how much workers’ compensation coverage you must hold.

Product Liability

Finally, if you work in some sort of product manufacturing, you’ll want to get your hands on product liability insurance. If your product has the potential to harm someone, you must protect yourself against potential legal action. Imagine a toy part you manufacture fails and children are injured or worse, your product liability coverage will protect you against any damages you may incur.

Never go without the business insurance coverage you need. Even if you work out of your home, you must protect your equipment against damage, loss, or theft. You might even consider insurance to cover your expenses in the event you cannot operate for a time. Can you afford to close your doors unexpectedly? Make certain that you stay in business no matter the incident. Whether a slip and fall or natural disaster, if you’re covered, you’ll be able to make a claim and keep your business running.