What is necessary to create a functioning business?

More professionals are launching side hustles, picking up a little freelance work on the side or bootstrapping their way to a business launch all the time. But there’s a big difference between running a couple small contracts off the side of your desk and building a fully functioning independent business.

Focus and intentionality

To create a functioning business, you need the drive and determination to make it successful. Freelancing while working another job can be tiring, but you have the security of a steady pay check and the assurance that, should things not go well, you can always fall back on your main gig. Creating a functioning business means that you have to commit to doing whatever you can to make a go of it. You’ll need to establish a workable business plan and press through the action items to grow your business. Finding a community of other business founders and owners, including people at a similar stage in their journey, as well as more experienced prospective mentors, can help support you and keep your motivation high.

Finances and legalities

A functioning business needs dedicated accounts, financing, insurance and legal standing such as a business license or incorporation documents. While freelancers and casual businesses can often operate as sole proprietorships with undifferentiated accounts, growing to a fully functioning business means you’re taking all the appropriate steps to run, manage, and document your business activities. Research business models and consider finding an experienced solicitor to help you identify the right business model and structure. Make sure you’ve filed all necessary documentation and are licensed to operate your business under the relevant jurisdictions. Open dedicated business accounts and fully separate your personal accounts from all business transactions. Make sure you’re covered with appropriate professional insurance, and keep records on everything. Fastidious bookkeeping today will provide future peace of mind, convenience, and security.

Equipment and space

As your team grows, your workload increases, and your client list expands, it’s time to invest in professional equipment and space. Upgrade hardware like computers or mobile devices, and consider multiple screens to help the team operate as efficiently as possible. Take a look at software and processes. Inefficient manual processes and information siloed in disjointed, piecemeal databases and software packages are slowing you down. Look into smart business solutions to boost your performance. Microsoft Dynamics CRM online helps you capture information once and make sure it gets shared with everyone who needs it. Finance, business development or sales and project management can all be revolutionized with the right software solutions.

Promotion and growth

Keep your business healthy with dedicated focus on marketing and customer service. Your business plan should include strategic action items for how you will differentiate yourself in your market, meet customer needs, and reach new customers. Part of your time, budget and, if you have one, team, needs to be dedicated to making sure your business continues to get work. Engage in regular marketing activities and make sure you have, or develop, a clear brand to help customers find, identify and remember you. Establish a website, keep it updated, and use it with search advertising, content marketing and social media marketing to reach new clients. At the same time, review your business offerings and communication practices to ensure you’re providing the best possible experience for your clients or customers.

Building the team

It’s possible to run a functioning business with a significant amount of outsourced work by using contractors, but as you grow, you’re going to want to build a solid core team of specialist employees or partners with a shared vision. It’s important to understand the culture and vision you want to create for your business, and hire to cultivate that direction, since new team members can bring their own dynamics to the business and send it in directions you might not be interested in heading. Look at current needs, as well as growth that you hope to achieve when hiring for new skills and expertise; the right hire can open up new markets, contacts and opportunities for you.

Creating a functioning business is a complex endeavour with significant rewards for those who have the endurance, determination and commitment to make it. It requires devoted resources and meticulous preparation. The proper paperwork and registrations need to be completed, accounts need to be opened and documented appropriately. Insurance needs to be purchased to protect the business and its leadership. Up to date equipment, tools and software support efficient and effective work, and resources need to be dedicated to maintaining a pleased customer base and reaching new prospective clients. A team needs to be built and cultivated. Invest in building a functioning business to enjoy the freedom and success of a fully developed business.