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Top Things to Remember When Starting a Business

Top Things to Remember When Starting a Business

It is an unfortunate fact that a large amount of start-up business will fail in their first couple of years. Therefore, getting the foundations right from the start is key to the success. Here are a few tips that can help your business get started on the right foot.

Business Bank Account

It is important to separate your personal funds from your business funds. In fact, in some places it is actually required that you have a unique business bank account where all your funds are separated and traceable.

There are many different banks for you to consider, including companies such as BB&T bank accounts, that can provide your company with business credit cards, checking accounts, and much more. These institutions are located all over the country, however, many allow you to complete applications and do all business online.  When you’re looking to start a relationship with a new bank, you want to ensure that a bank will give you the best possible deals for loans, overdrafts, and even savings. Unfortunately, this will involve the bank asking you a lot of details about your business and its forecasts and stability, and possibly running  a credit check on you as well to determine your financial background.

Performance Indicators

Keeping in mind Key Performance Indicators (KPIs) will assist you in understanding the direction your business is going. Generally, companies focus on KPIs such as cost or profit, however there are other key enablers that should be considered that have a direct impact on these important outputs, such as quality performance. Get this wrong and your customers may not come back. Poor quality products can not only damage your reputation, but you could subject your company to a lawsuit.

Another consideration may be the people associated with your business—their attendance, performance, or other factors. Again, if you don’t get the people element of your company correct, it will most likely impact your business’s performance and financials.

Shareholders

If you are a 100% shareholder of a business, you can get 100% of the profits. However, if the business fails you are also 100% accountable for its debt or liabilities. If you require money from a source, you have the easy option of discussing this with the bank, but you also have alternatives, such as giving away shares in your company in exchange for cash. If you think this through properly, this route may bring in some valuable expertise, in addition to a monetary investment.

Customer Focus

The customer should always come first and be at the heart of your organization. Some customers may cause you a lot of grief, but it is important to pick your battles. Your focus on the customer should be communicated to everyone in your organization to ensure that it is a priority for all involved.


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by Brian Perry // Brian Perry is a contributor to Businessing Magazine.

Opinions expressed by contributors are their own.