Starting a small business today is not as challenging as it used to be a few years back. In this digital age, there are countless business opportunities for every type of skill and budget. However, the harder part is running the business successfully. The success of your venture starts at the planning stage where you decide what type of products or services you are going to sell and exactly where you’ll locate your business.
Here are a few more factors that will influence the success of your small business:
A business plan
You’ll need to have a good business plan to succeed in your commercial venture. The business plan will help you launch the business and keep track of your key objectives as you strive to expand the business. You’ll also need a good business plan if you decide to apply for a loan.
Licenses and permits
You cannot legally operate a business without the necessary permits and licenses that are needed in your local jurisdiction. The requirements vary from one jurisdiction to another, so ensure that you meet all your local and state requirements for small business ownership.
Insurance coverage for small businesses
When you run a business, you have plenty to protect and insurance coverage is essential for your continued success. Fortunately, there are many types of policies you can choose from depending on the nature of your business, and the products or services that you sell. A good starting point would be property insurance to protect you from physical damage to your business premises and inventory due to causes specified in your insurance policy.
Small business liability coverage is also important. You may find yourself facing a lawsuit against your business no matter how well you run your business. It is a good idea to be prepared for lawsuits with liability insurance.
There are three types of business liability coverage, namely, general liability coverage, product liability coverage, and professional liability coverage. General liability coverage protects you when customers or employees sue your business due to an injury which occurred at your premises, due to an accident which happened on the job, or claims of negligence. Product liability coverage protects you in case you are sued for selling defective products. Lastly, professional liability coverage protects you from injury lawsuits due to unprofessional conduct of your staff.
Keep your records up-to-date
When running a small business, it’s important to always have your books in order. Keep your accounting records updated at all times and always pay your taxes on time. Small businesses pay quarterly taxes and are subjected to further tax requirements that are not levied against individuals. Maintain clean records of your income and expenses and file taxes by the deadlines provided by the federal, state, or local tax agencies.
Advertise your business
You cannot run a successful business if nobody knows about it. Use every possible means to advertise and promote your business. Newspaper ads, fliers, brochures, business cards, and even having a stand at a local trade fair are some of the most effective ways of advertising your business. We live in a digital age so create a website and promote your business online.
There are many more factors that influence the success of a small business, such as hiring the right employees, monitoring your finances, and choosing the best location for the business. The most important ingredient for success, however, is a strong determination to succeed despite challenges that may come your way.