Taking the plunge and starting your own company is quite the move and can reap rewards if you do it correctly. Making sure you’ve planned everything is obviously a hugely important step to being successful but there will be a large number of situations you will meet along the way, some of which won’t be the easiest to deal with. You can either take everything as it comes or you can think and preplan anything that might arise and ensure you have the tools to deal with them. Here we take a look at how you can protect yourself as an entrepreneur.
Planning
The first stage of anything – the planning stage is one of the most important things you can do as a promising entrepreneur or a business owner. It’s here that you will have every single detail of what’s important and what you want to happen within your business and for your company ideas. Within your business plan, you should have a description of your company and explain your functionality, this acts as a basis for the rest of the plan. You should also include things such as your set-up budget, your monthly and yearly forecast, and any sort of mitigation plan just in case things go really wrong.
Mentor
Finding a mentor isn’t something you hear about all too often, but it’s something that will prove invaluable if you find someone that’s willing to be supportive and help you through your initial plans.
Having a business mentor will allow you to think freely whilst having someone to bounce ideas off and stay realistic. They are in that situation because they’ve been successful in their own right so they are able to demand respect in the business world. If you can find a mentor, use them wisely, they could be your ticket to success.
Contracts
There are many different types of contracts when it comes to owning a business, but it’s important to remember just how important they are. They are legally binding bit of paper that will protect you in all eventualities unless the points of the contract have been broken. If you do business with another company then you’ll have to draw up a contract so everyone taking part in the exchange is protected. If you hire anyone to work for you then you’ll have to present them with an employee contract, protecting both yourself as an employer and them as an employee. To ensure you aren’t wording anything incorrectly using contract templates is a good way to start. You know that everything will be legally correct and will protect both parties how it should. It also saves an awful lot of time as there is more to a contract than meets the eye. Take time with them, it could be your saving grace or your downfall.
Keep Your Ideas Close
Before starting any company there are a few things you should remember as they could lead to you slipping up before you’ve even gotten started. Trust only a few people with your ideas and choose them wisely, these people should be able to give you advice but also keep your interests at heart. If you start telling everyone what your plan is then don’t be surprised if someone acts a little faster and does it first. Being sensible with who you talk to is one of the easiest and most effective ways of protecting yourself during the startup stages of business.
Legal Exposure
When it comes to setting up a business the last thing you want is any legal issues coming your way. This is why it’s so important to minimize legal exposure and ensure everything you do is above board. There’s no point in trying to trick the system at this stage as you’re only going to hurt yourself in the long run. Take every step along the way to make sure your business is complying with the law and if there are any permits that are required then have them ready to show any inspector that walks through the door. For example, if you were setting up a bar then you’re going to need an alcohol license, without this you can’t legally sell alcohol and your time and money will be wasted.
Starting your own business is a brilliant step to take in life and I would thoroughly recommend it to anyone thinking about it. You become your own boss and whilst it’s a lot of work, to begin with, it’s immensely satisfying being able to provide a service or product that’s wanted by the public. Protect yourself and your intellectual property in any way you can, but remember to stay above the law!
