So you’ve decided to take the plunge and start your own business and you’re sure you’ve got it all figured out. Chances are, you’re leaving out some small details that could end up being major issues down the line. Here are some important areas that you’ll want to be 100 percent thorough with before you even consider opening your doors or publishing that website.
Naming Your Entity
What’s in a name? Well, quite frankly, everything. Try not to be too cutesy unless you’re working in a field that calls for it. Children’s clothing and boutique items, or stuffed animals are two perfect niches for cutesy names. For services, using your name plus the service is perfectly fine. If you want to get creative, consider wordplay or a pun on your name or occupation to make it catchy and stick in the minds of your target audience. Otherwise, be practical and also represent your business accurately. People shouldn’t second-guess what you’re offering.
Outsourcing: Why it’s a Necessity
There are many services that companies outsource in order to increase success, such as bookkeeping, accounting, and marketing. However, you should really consider outsourcing production for those products that take a lot of labor and manpower. This can help cut costs and increase profits while allowing you to be competitive in the retail market. You don’t necessarily have to go overseas to outsource your production if you’re worried about time constraints. Many companies opt to use a maquiladora in Mexico, operated by foreign companies to help entrepreneurs in Canada and the United States keep production close to home.
This is something that you need to consider and set up right in the beginning before you take any other steps after naming your company. It’s also important to know your bottom line and figure out how to work these costs into the pricing strategy associated with each of your products.
Make sure you have ironclad contracts in place that detail the costs associated with the facility and manpower you’re paying for. Additionally, make sure there’s an NDA or copyright agreement that protects your creations from being copied and sold for a lower price to competitors who are looking to outshine you. This brings us to the next point.
Protecting your Products
If you’re selling unique items that you’ve created and nobody else offers, you’ll want to file a copyright or patent for each one to protect your bottom line. If you have unique names or catch-phrases, trademark them. All of these can be done without the aid of a lawyer, but it’s always a good idea to have one anyway to help you with terms that you might not know.
Starting your own company or product line is an exciting time, but it’s important that you don’t get so caught up in getting started that you forget the important factors. It may take more time in the long run, but you can rest assured you will have crossed your t’s and dotted your i’s so these points won’t become larger issues in the future.