The Finance Blogger


Setting up a Small Business

Setting up a Small BusinessSetting up a small business is an extremely challenging thing to do and most people have to work with limited budgets as well as limited help from friends and family. So how do they do it and become successful? The frank answer is that like the lottery there are many winners, but there are also many businesses that fail as well. Some make it because they have the right product at the right time and are very focused on their business. Others do all of these things, yet they fail because cash flow got the better of them in a down market. Cash is king. As long as there is enough cash around, most businesses will survive.

Setting up a Small Business

The following list are areas to pay attention to, however they need to be customized for your personal situation and business that you are in the process of setting up.  There are many more, however these are some of the main issues you need to consider. Above all use common sense and consider every decision carefully prior to proceeding with your small business.

  • Cash is king and never forget this. If you do not have cash you cannot pay your employees and your suppliers. They in addition to the banks will shut you down before you know what happened to you.
  • Hard work is all important along with long hours. You are going to have to put everything into your business in order to make it a success. Combine this with smarts. Working hard without doing it intelligently is just not going to cut it.
  • Surround yourself with excellent people who can make a major contribution to your success. You will have to reward them as you become successful in order to keep them motivated, but then if you are making money why not.
  • Don’t be afraid to fire people who are just not working out for what ever reason even if it is a family member. Sometimes family members are a great source of free labor while you are getting started, however they will need to be treated like employees with salary etc over the long hall if you are going to be successful
  • Incorporating and making sure all your legal documents are in place is also important. A good lawyer and bank manager will help you set this up. You will be able to protect your personal assets from any legal issue that may arise.
  • Although we really should have mentioned this at the beginning, it is never too late to focus on the customer. Providing superior customer service is an absolute must and if word gets around about your great service it is actually better than any possible advertising. The reverse is also true if your service is not up to par. Remember the comment about getting good employees! They must embrace the same notion about providing excellent customer service at all times.
  • Hire professionals for the areas that are not core to your business success. For example, you need to pay your employees, pay your taxes and complete your annual tax filing. Doing it yourself may save you the fee’s but it will take a lot of time and you may not even get it right, leaving thousands of dollars on the table for the taxman. Hire an accountant to do this work for you and focus on making your business successful.
  • Next to excellent service to your customers is excellent quality products for your customers. If you do not provide products that are of great value, reliable and meet your customers needs, your going to have a tough time. It does not matter whether it is cars or widgets, they must exceed your customers expectations!

These are just a few of the basics and you might wonder why this post is on a legal type of site. Lawyers are part of making your business successful and we felt that all of these other ideas might just help you as well to make your small business a success.

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