Starting your company is exciting. However, it’s essential to take the time to consider critical factors before you begin. Here are five tips to consider when starting a new company.
1. Pick a Name
Picking a name is much more complicated than choosing a baby name. When you select a baby’s name, you go on the gut. But when picking a company name, you need to think about what it means to you, what it means to your customers, what it evokes in your customers, and what it says about your company, brand, and product.
2. File the Paperwork
It sounds basic, but the truth is that many new business owners don’t even realize how necessary filing the appropriate documents with multiple levels of government is. This process varies by state, but here are some basics:
- Register your business. The most crucial filing to do at this stage is to incorporate your business.
- File with the IRS for an EIN (employer identification number). All businesses need an EIN to file their taxes correctly and hire employees, so they’re widespread.
3. Choose the Right Team
Your team is your work family. The people you choose to surround yourself with will make up your company’s culture, and as CEO/Founder, it’s your responsibility to pick the right people.
When choosing a team, look for passionate people about what you’re doing and who have the skills to help make that vision come true. You also want to find people with various skills so that the whole team isn’t comprised of employees who do similar things. This makes it difficult when someone has an off day or takes time off because other team members can easily step in and fill their shoes.
4. Get a Mentor
You must be thoughtful when selecting a mentor. This person will significantly influence your business direction, so you must get it right. Here are some things to consider:
- Experience and success in your industry.
- Willingness to help.
- Trustworthiness and confidentiality.
- Solid interpersonal skills, including effective communication and the ability to build rapport quickly.
5. Know Your Financials
Know your financials. Good financial management is essential to business success. If you’re not a numbers person, that’s fine—but you’ll need to learn the basics of accounting and finance to keep your business in check.
6. Manage Your Time Well
Managing the time you spend attending to personal matters vs the time you spend on your business is essential. It’s easy to lose track of time when you’re in meetings, speaking with clients, or replying to emails, but try to set aside some of your days for personal activities, so you don’t end up staring at a computer screen.
Conclusion
It’s never the wrong time to start thinking ahead, and having a vision of your business can help inform decisions as you progress. These considerations are worth bearing in mind as you establish your new company or startup. Seek to learn from established industry experts like Stefan Soloviev.