Thinking of Starting Up a Business? Here is What You’ll Need to Consider
If you’re thinking of starting a new business, you might be inspired to just jump right in with both feet. However, taking the time to consider a few important points first will make it much more likely that your business will find success. Here are afinance several things you’ll want to consider when you’re starting a business.
Raising Capital
You’ll need money to start a business. Whether you’ve saved up to start it, are planning on getting a small business loan, or if you hope to attract investors to your business, you’ll need to have a financial plan. Sit down and figure out how much you will need to start the business and to operate it. Remember that there will likely be several unexpected expenses along the way, so be sure to have a little bit left over or a contingency plan to deal with these costs.
Also note that it will likely take longer than expected to make a profit from your business, so you’ll have to have a plan to deal with this and keep things running.
If you’re going to be seeking outside financing, in the form of a loan or investment, you’ll need to have a plan. It’s important to prepare for a meeting with a lender. You’ll need to have good credit as well as a strong business plan to show that you are a good risk to lend to. When you’re meeting with potential investors, your business plan will be even more crucial.
Your Business Plan
As mentioned, your business plan is very important if you’re going to be meeting investors or lenders to secure financing for your business. However, even if you’re not looking for outside financing, having a solid business plan is still a very good idea. It can help you hone your vision for your business and consider all possible angles and aspects of your potential business before you start setting it up.
Legal Aspects
Before you start your business, you’ll need to figure out what regulations and laws you’ll need to follow, if there are any licenses that you will need to acquire, what taxes you’ll have to pay, and various other legal aspects. Depending on the nature of your business, there could be several legal requirements that you aren’t aware of right now. Take the time to understand these legal details before you start your company, as there could be lengthy and expensive processes that you’ll need to go through to comply with the law.
Accounting
Accounting can be very complex and time-consuming to complete on your own. Many small business owners start off assuming that they can do their own accounting but, as they grow, they soon realize that it becomes unwieldy to do so.
It’s also important to consider the opportunities that you may be missing if you don’t have a solid plan for your accounting. You could potentially miss out on deductions, write-offs, and other financial opportunities if you don’t have the experience you need to do your own accounting or the time required to research these options. Most times, it’s a good idea to work with an accountant from the get go.
Getting the Right People
Working with the right people is critical. Just because you get along with someone personally, it doesn’t mean that this person will be a good business partner or employee.
If you’re getting investors for your business, you’ll want to be selective in whom you choose as well. Not all investors will have the same vision for your business as you do, and it’s important to be aware of this before you dive in.
It’s also important to get the right advisors and mentors. No one person has all the answers, so you’ll want to seek out various people who have various perspectives to assist you with solving business problems and creating strategies. However, you also can’t listen to everyone. Some people will have ulterior motives or biases that make it difficult for them to give you good advice. Figuring out who you can work with and trust is crucial for a business owner.
How a Chartered Professional Accountant Can Help
A Chartered Professional Accountant (CPA) can be very helpful to anyone who is starting a business. Not only can a CPA handle your organization’s accounting, but they can also conduct business valuations, develop investor packages, provide start-up counselling, assist you with developing business strategies, and much more.
Working with a CPA will help your business take advantage of opportunities, manage legal requirements, and more. You’ll also receive professional guidance from an objective, experienced, and honest voice. For more information on how a CPA can help you when starting your business, please contact us today.
