Startups are companies that have just been founded. Either they are just pushing their business out to the market, or they have not yet made it big and are starting off in a small but growing market. Startups are mostly established by young entrepreneurs.
Most startups are small and create some jobs. Although some large corporations are started in this way, very few startup businesses survive to grow into large, mature and profitable companies.
Below are things every startup should have so they can grow.
1. Business Plan
A business plan is a written description of how you intend to start and develop your business. It details, in practical terms, how you will manage your finances, employees, products, markets, suppliers, production and other operational matters.
A business plan helps you focus on what needs to be done to build a successful business.
Capital in business refers to the money that is invested into a company in order for it to grow. It can also pertain to real goods, such as machinery and buildings that are used in manufacturing. In today’s market, many businesses are formed with the idea of getting capital from investors.
The capital would then be used to grow the company and expand its startup operations.
3. A Registered Business Name
A registered business name is a name that has been legally registered with the government. It’s a great idea to register your brand because it will eliminate the possibility of another business using the same or similar name and cause confusion among consumers.
Also, it will prevent someone else from registering your trademark and inappropriately claiming ownership of your brand.
4. Legal Structure
Startup Owners need to protect their business and its assets. A business legal structure (corp., LLC, etc.) establishes what the business owns, how to pay taxes, whether a shareholder or partner is personally liable for debts, etc. This protection can prevent litigation and limit liability.
A business license/permit is an important step in starting a business. It confirms that you have permission to operate your business with the city, county or state agency that issued it.
A business license or permit proves to customers and potential customers that your business is legitimate. It also changes your business from a personal activity to a commercial one, allowing you to operate as a separate entity from yourself.
For most startups, getting various business insurances, such as professional indemnity insurance, employer’s liability insurance, and public liability insurance, are a must. It offers financial protection against both the risks and perils that come with your startup business.
You need to get insurance mainly for three reasons: accidents or losses, taking on debt or credit and starting new lines of business. In case of accidents or losses, limited liability status can protect your personal assets from any damage caused.
7. Business Account
A business account is basically an account that the company uses for business purposes. These can include employee salaries, supplies, and promotions.
Business accounts are usually handled differently from regular bank accounts that are used by private individuals. The main reason being that the funds inside a business bank account cannot easily be withdrawn by a third party.
This is to prevent fraud, and thus there are other safeguards at work when it comes to this banking account.
The success of your startup will largely depend on how much passion you have, the team that you’re working with and the amount of effort you’re putting in. However, the points above are some essentials that every startup needs to thrive and be successful.
These essentials aren’t taught in college and vary from industry to industry, but these are typically must-haves for any startup.