Entrepreneurship and business may sound like fancy life choices that could make you feel like a complete boss. However, there is so much work that goes into building things from the ground up, let alone commercializing products and services. There are several layers to a business, but things that need careful attention are aplenty. If you’re planning to start a business, own a business, are a freelancer, or are on the verge of huge success, you’ll all vouch for how important it is to have some semblance of structure to your work.
Entrepreneurship looks like there is a lot of free-reign, but this is possible only because there is order. You can learn a lot from the most successful entrepreneurs, who always have a few essentials they stick to in their day-to-day activities. This blog will talk about the key elements that you must have in place in order to run an effective business. No matter what scale you start from, setting these necessities up from the beginning will help you when you’re ready to grow by scaling with you!
- Proper Documentation: This goes without saying that every type of business is incomplete without the correct paperwork. If you have started off with your very first business, you don’t have anyone to look up to or to tell you how to get things done. Most entrepreneurs don’t know that their ideas can easily be stolen or mimicked if they don’t take the corrective steps to safeguard their intellectual property even if the company hasn’t been registered yet. Look into your products or services and if they need to be registered, trademarked, or patented; if the answer is affirmative, get it done in your name if the business has not yet been established. If the business is in the incorporation phase, make sure you pay rapt attention to all the documentation and perform due diligence. For a freelancer, things can seem different, but there are ways your business can be protected as well, do your research and safeguard your business interests to avoid any messy situation.
- A Business Plan: A business plan charted during the infancy stage of your organization will show you where you want to go and how to go about it. Sure, many people skip a business plan, but it can be risky in the long run if you haven’t prepared any set responses for setbacks or failures. A strategy takes care of putting on paper what your business is, how things are done, and who this business caters to. You will also have to add details like your competitors and the research involved. In the long run, this will help you not just stay on course, but also pitch new clients and investors. Revisit your business plan often to check whether or not you’re sticking to the path or if there are any changes to be made in the plan as the circumstances change.
- A Marketing Strategy: If you don’t have a marketing strategy, you’re going to underuse the potential of your business. A marketing strategy for even a sole proprietor will help them to expand their business to whatever scale it can climb up. Marketing teams can be expensive to hire, so if you’re a small business, it can be difficult to do. However, you can take the help of expert firms that lend their teams and time to help businesses come up with the best strategies, be it direct mail or other kinds of marketing. Make sure that you vet your potential firms so that their style and your goals align, as the success rate of your marketing implementation depends on it!
- Legal Help: Every business, no matter what the scale will benefit immensely by having legal counsel on their side. If you’re a small company or an individual running a business, hire a subject matter legal expert by their hours, but get it done. They will look after your documentation so that you don’t accidentally breach any rules nor get taken advantage of. Freelancers especially will benefit from drawing up detailed contracts with the help of a legal advisor to ensure that they get paid on time and can safeguard their products or services.
- Financial Strategy or Funding: Worrying about funding and finances is one of the most common phases for business owners. Some leave stable jobs to start their own dream career, which means that the stakes are high. Even those who are self-funded need to have a strategy ready in place for the day when they will need to raise more capital. Think of how you want to approach your business, whether you’d like investors on board, which also means them having a say in the decisions you make regarding the business. However, if you choose to self-fund, there are many risks you need to be prepared for. Each business is different, so figure out early on what suits yours best.
- Spending Strategy: After funding, the next element to be addressed is the spending strategy. Funds can dry out in a flash if you don’t keep a close watch on where they are being directed. It would be wise to create a budget and stick to it.
- Proper Employee Chain and Payroll: In small organizations, there is not much need for fancy designations because all employees tend to wear multiple hats. However, there needs to be some semblance of order on paper that can establish a line of hierarchy, which will help in the future once you start hiring more employees. Have a proper communication chain to keep communication effective and recorded. Another thing to establish on priority is a payroll system so that there is transparency regarding remuneration or taxation and timely payment to all on your team.
It takes a lot to establish a business and you can see exactly why these points above made it to our top priorities. Be it a one-person business or a hundred employees strong business, laying the foundation with these aspects will make sure that there are no contingencies. We hope you got to learn something nobody said to you while starting a business from this blog, which is creating order to ensure you attain financial freedom without any baggage!