The pandemic has encouraged many professionals to start their own companies. Launching a business is daunting, especially if you have never been self-employed. However, it isn’t as inaccessible or impossible as you might think. On the contrary, you could get your own company off the ground in no time with the right preparation.
However, as an entrepreneur, you need to plan for success while creating a plan B to tackle unexpected issues. The key to building a successful business is to make sure you don’t leave anything to luck. Considering what might go wrong and planning accordingly can protect your business and your family in the long term.
Do I need business insurance?
The answer is yes. Every company needs business insurance. However, the type of insurance will change depending on your business needs. Even if you do not think that your business could be at risk, it’s best not to take chances. Business insurance can protect your livelihood when you face a compensation claim from a dissatisfied client or when a member of the public complains about sustaining an injury on your premises, for instance. Typically, specific business trades will have specific insurance needs, such as a restaurant or a beauty salon. These reflect the services as well as public liability, professional indemnity, and employer’s liability. Additionally, if your business has a physical location, you will need to consider building and contents insurance. Failing to plan for such situations could force you to shut down your business at the first issue.
How do I plan the future of the business?
You may be thinking of a business plan. However, the business plan, while essential, only specify the activities and expenses necessary to achieve your goals. The business plan fails to determine what happens to your business in the event of your death. Long established companies often set up director succession strategies. But, when it comes to a small business, there isn’t any in-house legal advisor to help with a succession crisis. So, it can be a good idea to leave your business in your will to ensure the company can be handled by the beneficiaries you have chosen. We strongly recommend reaching out to a professional solicitor to discuss how their will writing and estate administration services can protect the future of your business. It’s important to note that a will can also prevent disputes regarding shares or contractual obligations with the assistance of a solicitor.
How do I fund growth?
Securing a business loan can be difficult for new entrepreneurs. You need to have history business data to be able to convince more money-lending institutions. However, you can consider grants to unlock growth thanks to dedicated capital development that doesn’t require repayment. There is a huge variety of grants available to small businesses, including Local Enterprise Partnerships, Innovation grants, and New Enterprise Allowance options. Additionally, grants may vary depending on your location, as England, Scotland, Wales, and Northern Ireland have different grant options for their local entrepreneurs.
As a grant comes with no repayment string attached, small businesses can use them to equip and launch their company.
As a new entrepreneur, you need to prioritise business protection. Focusing on insurance cover, will, and capital funding are crucial choices to protect growth in the long term. They answer the inevitable “what if” question. What if something happens to you, to the company, or to your finances? Ensuring your business is prepared to cope with unexpected situations is a no-brainer.