Thinking about taking the leap and launching into a new business idea? Starting a new business is often an exciting time, and for many, it offers the chance to turn their passion into a full-time career; but, running your own company isn’t without its pitfalls. Ensuring you’re prepared is the key to making a success out of your new business. Making sure you’ve got the legalities covered right off the bat is crucial, and ensuring your company is above board from the get-go will allow you to focus on the more interesting aspects of growing your business.
Are You Covered by a Proper Insurance Policy?
One of the most important elements to have in place ahead of your new business venture is an insurance policy that covers you for the work you’re doing. If you’re sued for malpractice or a mistake, then the right insurance policy can mean the difference between continuing as a business or closing shop. If you’re opening a new business, then having a policy in place that covers you against professional mistakes is absolutely essential. Professional liability insurance covers you in the event of a civil lawsuit or negligence claim. This means that, if, for example, you cause a large amount of damage to a client’s property whilst mending the roof, or slip and knock over a priceless vase, then you’ll be covered if there is a legal claim against your company.
Open a Company Bank Account
Obtaining a company bank account is easy to do and adds a level of professionalism to your new business. When dealing with clients, having a company account will make your business look and feel more trustworthy, and in turn, this will bolster your reputation. Furthermore, having a dedicated bank account for your business will make the job of filing your taxes much more straightforward and you’ll avoid potential legal issues in the future. On top of this, keeping a detailed record of your income and outgoings from the start will make for a simplified process down the line, should you need to prove anything.
Develop a Suitable Marketing Strategy
Nowadays it’s more critical than ever to have a marketing strategy for your new business from day one. However, with claims frequently being made against businesses for the false advertisement of the products and services they offer, it’s important to make sure your marketing campaigns aren’t falling foul of the law. Be certain that if you’re making bold statements in your marketing that you’re able to follow through and deliver. Promising something via your marketing efforts that you cannot deliver in reality is an open invitation for a lawsuit, so be realistic with what you offer.
If you’ve read this and you’re thinking about starting a new business but haven’t quite settled on an idea, then check out this fantastic guide on business ideas. It’s packed full of potential ideas that you could start working towards today with as little as $5,000 in the bank. Just be sure that once you’ve chosen the right idea that you’re aware of the legal requirements of setting up your own company and working for yourself