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So you’re thinking of starting a business?

Posted by: The ADP Team on 26 June 2018 in Business Strategies, Compliance, Small Business

Here’s how to outsmart uncertainty and set yourself up for success in starting your new business.

Every aspiring entrepreneur knows that starting a business is risky. You sacrifice the steadiness of a pay check, a clear path of advancement and benefits just for the chance to run a successful business. You know that the odds are slim because failure rates are so high and everyone asks you, “Are you sure?” To the outside world, the idea of starting a business can seem like a quixotic dream.

But remember that you may be able to reduce risks to your fledgling business by putting extra care into your decision-making process before you start your company. Here are some tips to orient you in a positive direction from the start.

Get the right advice

While an Accountant might not be the first person you think of sharing your exciting new business idea with, talking to one early in the process can be key to finding the way forward. To start, an Accountant’s fresh but experienced perspective can help you evaluate and refine your business idea, identifying potential stumbling blocks and ways to manage costs. An Accountant can also help you understand your various tax obligations, many of which tend not to be clear to early-career entrepreneurs. In other words, an Accountant can guide you through some of the most important aspects of starting a business.

Navigate the bureaucratic maze

While some industries entail more red tape than others, every new business has to jump through its share of hoops. But knowing what you’re in for before you’re in the thick of it can help you get to the other side faster. So be sure to research the formal processes and approvals associated with the business you’re hoping to start. Brick-and-mortar businesses, for example, require zoning or building permits, while others require licensure or a myriad of other regulatory obligations.

Prepare to pay your people

Does managing payroll fall on the dry side of entrepreneurship? Maybe. But doing it wrong or inefficiently can cost you serious time and money. Especially if your business involves only a few people, you might be tempted to take a DIY approach to payroll — just as you’re probably crafting makeshift solutions for many of your nascent business’s needs. But future growth can complicate payroll sooner than you think. And remember that payroll involves much more than simply handing out checks: Do you have the time — or the know-how — to deal with issues like benefits, deductions, tax reporting and compliance? These are all reasons to consider whether DIY will prove to be the best approach for you or whether a third-party payroll management system will be better for clearing your path to success.

Get to know other entrepreneurs

Just as an experienced CPA can help you avoid many of the pitfalls of starting a business, surrounding yourself with a community of other entrepreneurs gives you the benefit of modelling key aspects of your business on successful examples. Whether they’re in your industry or not, other business owners can walk you through their thought processes, help you avoid mistakes in the face of common obstacles and recommend useful tools. And don’t underestimate the power of camaraderie amid the trials of starting a business. Along with reaching out to people you know in person or via online business communities, try reading articles about other businesses or interviews with peer entrepreneurs.

Leave room to learn from mistakes

As you get your feet under you and gain more exposure to what works and doesn’t for your business, you increasingly become a source of knowledge and insight — not only to others but to yourself, as well. Getting to that point requires making some mistakes, though, no matter how much advice you receive or planning you do. Taking advantage of the benefit of hindsight means remaining open to mistakes by cultivating a positive and resilient attitude, embracing creative problem-solving and taking a long-term view of your goals. Remember, mistakes — and even failure — have lead many successful entrepreneurs to better things.

Original post by ADP Thrive.

 

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