Becoming a new business owner can be both stressful and rewarding. It is ultimately a 24-hour job that takes up most of your weekdays and weekend hours, with the added pressure of knowing whether the choices you’re making are the right ones. You will be faced with a wide range of challenges every single day, but starting off small with a very gradual expansion is the key to financial security and long-term success.
If you are thinking about setting up your own business but are unsure what it may entail or how to get your foot off the ground, here is some useful advice to take into account.
Invest in adequate insurance
Upon setting up your business, one of the fundamental tasks on your to-do list is taking out insurance to ensure you’re fully protected against any legal issues or risks. Small business insurance costs will typically depend on whether you deal with machinery for the protection of employees, which will be highly likely in industries such as manufacturing. The average cost of insurance for small business from Hiscox starts at just £105 each year and will give you the protection needed to keep your business afloat.
Be careful with hiring
In the early days of your startup, it wouldn’t be advised to hire too many employees at one time. Be sure to limit hiring until the business has gained financial security. Many small businesses choose to recruit candidates with backgrounds in law, finance or science, as they provide versatility, can work with numbers and all-important problem-solving.
When the time comes to expand your staff, read each resume carefully and pay attention to the candidates who have included details of what was asked of them in the job description. You will then become aware of who is the most passionate about the role, rather than those who are applying out of necessity.
Keep track of finances
Ensuring finances are in order from the very first day of business will determine whether your business has a good chance of surviving. Just a few small slip-ups could set you back thousands of pounds or may even land you in debt. It would always be worth seeking the assistance of an accountant to manage money matters for you, saving you both time and money. They will be able to advise on how much money to set aside for the upcoming tax bill, as well as other fundamental business expenses. Until you find a suitable accountant, keep a record of incomings and outgoings, so the basic foundations are already in place.
Outsource where possible
As your business will be running small-scale for a few years or so, it would be wise to outsource jobs as and where necessary to avoid having to hire full-time staff members. This is a far cheaper and efficient option that won’t eat into the business budget to such an extent. For example, hiring a virtual assistant to respond to calls and emails on a freelance basis will prevent having to hire a full-time receptionist in-house.