Starting a business is like going on an adventure. You’ve got a to-do list, excitement, and a bit of trepidation. While you’ve made plans, the unknown factor looms in the background. What if you run into unanticipated obstacles? Furthermore, what if you forget something you can’t do without?
Overlooking the essentials is more common than you think. Whether you’re about to start a construction or consulting business, the right amount of concentrated research is key. Before you sign off on your business plan, here are what most owners forget when setting up shop.
Equipment for Long Hours and Efficiency
In the beginning, you might underestimate the number of hours you’ll be working. You could also miscalculate how many hours you’ll need to clock each day. Certain projects can take longer than others. And if business is booming, juggling multiple demands means putting in some serious time.
You’ll need good equipment to support those long hours and help you be more efficient. Think through what tasks you’ll be repeating daily, as well as what tools can make those workflows easier. What will your workspace look like, and what equipment will allow you to work comfortably for extended periods?
Say you’re a contractor in the construction industry. You may be working early in the morning and later in the evening. Having a good set of rechargeable work lights will help you finish jobs, even when lighting conditions aren’t ideal. Meeting the demands of clients can’t be accomplished without the best equipment. By thinking through various potential volumes, schedules, and work environments, you’ll be ready to handle customer demands.
Legalities
Even if you’re starting a small business, there are legal considerations to iron out. Some of these include obtaining permits, getting the appropriate licenses, registering your company’s name, and applying for a tax ID. Another critical consideration is your business’s legal structure.
It’s easy to assume a sole proprietorship will be sufficient, particularly when you’re first starting out. However, a sole proprietorship is best for low-risk industries and business activities. With this type of business structure, your personal assets could be on the line should your company face lawsuits. Your personal assets, including your home, could also be fair game if your business owes debts it can’t pay.
It’s why a limited liability company could be more appropriate. This structure is also known as an LLC, which can protect an owner’s personal assets. You’ll want to check your state’s laws, as some types of businesses aren’t allowed to become LLCs. Other considerations include growth plans, the number of owners, and tax implications. Partnerships, limited liability partnerships, and corporations are additional possible structure solutions for your company.
Insurance Policies
Your business insurance needs will vary depending on where you set up shop. Additional variables include whether you’ll hire employees and your company’s activities. Say you decide to become a real estate investor. You’re not a silent partner, but actively managing the properties you acquire.
You may need a commercial liability umbrella policy in addition to separate homeowners’ policies for each property. In addition, think about where your office will be. Will you be working out of your home or leasing downtown office space? Regardless, you’ll want to protect your work assets, including equipment and intellectual property.
For home offices, you may just need to beef up your existing homeowners’ policy. Additionally, you may want to take out a personal liability umbrella policy, especially if foot traffic to your home increases. If you decide to lease commercial space, you’ll likely have some insurance requirements stipulated in your lease. Consider all the risks and how insurance policies can mitigate them.
Workspaces
Some businesses are fine with a single workspace. Say you’re starting a virtual assistant or freelance graphic design company. You can probably get away with a standing desk in one dedicated office space.
But there are plenty of businesses where you have to think beyond the desk. A single space won’t cut it. It might be a good essential start. However, to get some of the tangible work done, you need additional space. You may need to convert sheds, trailers, and garages to workspaces.
If this is the case, evaluate what you’ll need to transform those spaces into functional work areas. Often, it’s more than moving objects around. These spaces could require rewiring electrical lines, installing HVAC equipment, and adhering to updated building codes. Outline all your business’s work-related tasks, the different types of spaces that will accommodate them, and the frequency of use. If converting spaces at home, don’t forget city ordinances and your HOA’s bylaws.
What Not to Forget
In the U.S., an average of 4.7 million businesses start each year. 2023 hit a record, with the launch of 5.5 million new ventures. While these stats reflect America’s culture of entrepreneurship, successfully launching, operating, and growing a company takes a visionary mindset. Within this mindset is the ability to plan around gut instinct, considering the practicalities of running a business.
Equipment, legal implications, risk mitigation, and functional workspaces are a few of the essentials owners can overlook when planning. At times, it’s easy to get caught up in the euphoria of seeing an idea through. But to achieve positive outcomes, you have to think about how your business will function today and in the future. Setting your company up for success means putting structures and workflows into place to support the vision you started with.
