Monday, November 23, 2015

Invest in your Business

Many small / medium sized businesses are incorrectly set up. The thing is many of them try to short cut their way to success and it always comes back to get them at a later stage. Often that stage is when they seek external funding.

When going into business you need a few things from the outset. There will be listed below:
  • Money - You will need funds to establish your business properly regardless of your strategy. Your business needs to be registered. Depending on the nature of your business, you will need a structure that limits your liability. They will be differences in your jurisdiction, but will serve similar purposes. Allocate some of your funds to seek sound legal counsel and establish your business on a proper footing. 
    • Money is also needed for a business plan if you do not yet have one, they are not cheap; though when compared to the costs of not having one they are priceless. 
    • Stationery, Office Equipment, Tools, Marketing Material, Other Assets necessary for your business. There's just no way to really shortcut this, if you have to borrow it more than twice, you need to purchase your own. Besides it is usually a tax deductible in most jurisdictions.
    • Working capital - to facilitate operations including inventory, salaries and wages, and rental / purchase of a location.
    • Support and access to funds - good relationship with your banks and close finance network which may comprise of family members and close friends. Especially necessary for quick turnarounds of various opportunities.
  • A team - real or virtual; you need support. At the minimum, you will need the following and should secure their services or at the very least make contact to have representation for your business based on your agreed terms - an accountant, an attorney, business advisory (all aspects of operations), tax planning. Identify and work with a human resources professional, you would want to be compliant with the rules and regulations governing employment of staff and independent contractors. 
When you have these basics in place, you will have a better chance at succeeding in your venture. 

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