The essentials when setting up a business

The process of setting up a company can be exhilarating. Sure, there’s lots of hard work involved, but if you have the relevant business acumen and you’re dedicated to the project, you stand every chance of success. To get off to the best possible start in your new venture, it’s important to focus on the basics. With this in mind, here is a brief guide detailing some of the essentials you’ll need to consider when you’re embarking on a career as an entrepreneur.

Find suitable insurance

Rules and regulations – these are two things you’ll need to get used to when you establish an enterprise, and quickly. If you’re not very careful, you can land yourself in legal hot water within a very short space of time. One of the issues you must get your head around is insurance. There are a number of different types of cover on offer. While some of these are optional, others are not. Fortunately, if you feel like you’re in over your head when it comes to such cover, help is at hand. For example, you can talk to insurance specialists such as Mastercover Insurance.

If you employ anyone, you’re required by law to have employers’ liability cover of at least £5 million. This protects you if your staff members are taken ill, suffer an injury or die as a result of their work. You might also need to have business motor insurance. Many new bosses fall into the trap of assuming that regular car insurance will suffice. However, unless your policy includes business use, you could come unstuck if you use your vehicle for work purposes. Another important form of financial cover is public liability insurance. This is not compulsory, but it could be highly valuable to your organisation. It protects you for damage against people or property that you might encounter through your work, like your customers.

Do your sums

Even the best businesses can take a while to start generating profits, and you must make sure you have sufficient funds in place to see you through the difficult initial phase of your venture. There are a number of different sources of money on offer, including bank loans and the proceeds of share sales. It’s also worth investigating whether you’re eligible for support from government-backed schemes.

Once you know how much money you have to work with, it’s vital that you create a detailed financial plan that incorporates your anticipated costs and revenues. This will help ensure you live within your means when you’re selecting business premises, buying supplies and so on.

Be prepared for a challenge

Perhaps most importantly of all, be prepared for a challenge. Getting a new business off the ground is never easy. As well as skill, it takes plenty of patience and perseverance.