While huge corporations may appear to dominate news, it is small company entrepreneurs that embody the Kiwi ideal. Small companies, which symbolise opportunity and independence, are the backbone of the New Zealand economy.
Perhaps you’re considering joining their ranks as a first-time company owner. We understand that the initial steps towards entrepreneurship can be both exciting and perplexing, so we designed a short start-up checklist for aspiring small company owners. Using this small company checklist, you can evaluate which issues are necessary to address before establishing a firm.
Do your research
Before you start your business, you need determine if it is feasible. That is, does it have the capacity to succeed? After all, you wouldn’t want to put your heart and soul into a firm that has a slim possibility of succeeding.
One of the first stages in getting your business off the ground is to conduct some market research. You should research the following topics:
- Who your potential consumers are and what problem you plan to address for them
- These potential customers’ preferences. How are they going to discover you, and how do they want to communicate with you? What are their likes and dislikes?
- Your rivals’ names, as well as their strengths and shortcomings
- What it’s like to establish a company in your neighbourhood. What are the procedures and rules you’ll have to follow?
- Your neighbourhood’s market. Is there a market for your product or service, or is the market saturated with comparable items and services?
Create a business plan
A business plan will instruct you on how to run your small firm. It also assists you in developing strategies for boosting your sales and client base. Your business plan might be basic or complicated in form, but it is fundamentally a document that explains your financial goals and how you intend to accomplish them.
Because a business plan describes how you intend to achieve your objectives, you can share it with potential investors to help you get financing for your company. It can also assist you in attracting partners that can assist you in growing your business.
Set up a financial plan
Following the creation of a company strategy, you must determine how you will manage your money in order to pay expenses and get paid. It doesn’t matter where you conduct your banking, but you might want to consider business bank accounts with digital services and applications, branches close to your physical location, and cheap or minimum account fees and charges.
You should also begin acquiring company credit. If you’re a first-time entrepreneur, you’ll need to develop a company credit score in the same way that you’ve earned a personal credit score over time.
Your company credit score influences future loan interest rates, payback conditions, and the amount of money you will get.
While each lender has different requirements, you will generally be required to present your previous revenue, spending, invoices, and payroll when applying for a loan.
Choose your insurance coverage
Whether you are self-employed or have five workers, you must ensure that you have appropriate company insurance. The appropriate insurance protects you from unanticipated expenditures associated with running your business. From accidents to property damage to litigation, having the appropriate coverage means you won’t have to pay tens of thousands of dollars for damage caused by a broken pipe or slips and falls.
Different types of coverage will be required depending on the type of business you run. The four most prevalent types of new small companies are as follows:
General liability. This covers numerous workplace incidents, including property damage, bodily harm, and medical or legal expenses. General liability insurance is the most fundamental form of insurance that most businesses require.
Professional liability. This insurance can cover accusations of professional mistakes, as opposed to unavoidable accidents. It’s important if you deal with expensive property (such as houses or cars), but professional liability insurance can also cover you if you have technical difficulties and can’t complete a job.
Commercial auto. In the event of an accident or collision, commercial auto coverage compensates for damage caused by or to your company vehicle. If you use your car for commercial purposes, it is usually a legal necessity.
Workers’ compensation. If an employee is injured on the job, this form of insurance will pay their medical bills and missed wages while shielding you, the employer, from liability. Workers’ compensation is required in several states for every firm with even one employee.
TIP: Shop around for insurance. Not all providers are alike, so look for insurance tailored to your specific needs. We specialise in tailor made insurance, so if you think your business requirements are unique, contact us and we can get your policy to suit your business needs.