Figuring out what things are necessary for launching a business is quite a daunting task for an entrepreneur just starting out. Too many people make the mistake of making poor investments, only to find that the funds could be better used elsewhere. Here are the best investments to make when launching a startup.
1- Business Insurance
Business insurance should be one of the top priorities as it is instrumental in protecting your assets. There are many factors that contribute to the overall cost of insurance. This can include properties that need to be insured or liability coverage required for vehicles driven for business purposes.
It is also important to note that there are elevated risks associated with entertaining clients on the premises. Mainly because you are liable for any accidents that occur on the property. Lastly, consider that the types of goods being manufactured influences the cost. Know your business and insurance needs before you make a decision as this will impact your company later down the road.
2- Legal Structure
Legal structure is another important investment to consider when launching a startup. You want to make sure that your assets are properly protected, and why it is important for the company’s finances to be separated completely from business assets. This is best accomplished through a legal business structure.
Discussing the legal structure with an attorney provides you with the necessary guidance to determine which structure is most appropriate for you, your business, your clients, and your employees.
3- Software and Technologies
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In most industries, your company is only as good as its software and/or technology. Having the appropriate software for your business is critical to everyday operations. For example, investing in the right point of sale system can mean the difference between having to purchase a ton of supplementary software modules and add-ons to accomplish specific tasks, versus having everything you need right from the start.
Each POS system serves a specific industry, so it’s important to do your research before making a decision. You will also need accounting software for your business, but different solutions have different capabilities. Some integrate with POS solutions and some don’t as easily. Variations of a solution may cater to independent contractors while others are better-suited for manufacturers.
4- Marketing Costs
Marketing and public relations costs are important in getting the word out about your business. After all, no one can visit your business, or make purchases, unless they know it exists. Some marketing solutions are better suited for certain businesses, so some research is required when making this decision.
You may (and probably should) use a combination of PR and marketing costs to increase business throughout your entire company’s lifespan. Marketing on any level will make a difference in a business, so whether it’s placing a few adds online or publishing an ad in a local publication, you will still need to advertise your business.
Another option that companies opt for is social media. Social media remains one of the most cost-effective marketing options online, and simply having an account could gain traffic for your company.
5- Office Space
An office space is critical to conducting business if you require a brick and mortar location to interact with customers. While you may need an office space, you may be able to save on furniture and fixtures utilizing auction sites online, goodwill furniture, and furniture outlets. Your equipment expenditures should be limited exclusively to what is necessary for everyday business. You don’t want to risk your budget on investing in too much too soon – and especially on unnecessary items.
The Bottom Line:
These business investments are essential to launching a business and should be researched completely before making a purchase. Every expense should be carefully planned. No more should be invested in the business than what is necessary if you are operating on a limited or shoestring budget while starting out.