Making your Business Successful

Making your Business Successful.

Are you ready to start your first business? There are definitely going to be some problems in the initial months. However, the obstacles you’ll face on the road to success are well worth if your company survives. Starting any business has a price, so you need to determine how you’re going to cover those costs. Understand that your choice of goods will have some effect on how much you’ll need to shell out upfront. So keep the following in mind:

Insurance

  • You are a startup and you don’t have extra capital to spend on insurance that you don’t really need.
  • If you’re working out of your home and your only liability is losing your office equipment in a fire, or someone tripping and falling during a visit, you can make sure your homeowners insurance covers that.

  • In general, you don’t need insurance until you hire your first employee, and then you’ll need a lot of insurance.
  • Until then, see if you can save a buck by going without insurance.
  • If you’re operating outside your home, you’ll want a minimum of insurance on your office and assets.

Liability Insurance

  • Your liability insurance depends on your business.
  • If you’re a service provider such as a proof-reader or graphic designer you probably don’t need insurance, majorly because you’re unlikely to get sued no matter how poorly you perform.
  • While every insurance agent will tell you that you need errors and omissions insurance, be sure that you will not likely to be sued in the aforementioned services, unless you stole from the business or committed fraud, which is not covered by insurance anyway.
  • If your business is into selling products, evaluating your risk is good.
  • If you sell bottle corks, your liability would probably be limited to replacing bad bottle corks, however, if you mass-produce juices, you have the liability caused by people getting sick on your juices.
  • You’d want product liability insurance instead of having to self-insure that liability.
  • This is when you need to be the judge of the product that you are selling and the liability that comes with it.

Getting Paid

  • Wherever possible, collect 10%, 15% or 25% of your fee upfront.
  • What good is being your own boss if you don’t get paid for your work?
  • Your client’s reaction to that request will tell you a lot about whether they’re capable of paying you.
  • Always use contracts and clearly specify what the deliverables are and what and when people will pay you. Make sure the contract has been acknowledged by the client.
  • A contract is not only important, it also shows professionalism.
  • By having a contract, you’re saying that you play for real and that you’re someone whose business people need to take seriously.

Self-Employment Taxes

  • When you’re self-employed, you shoulder the entire amount that your employer would withhold when you’re an employee.
  • Roughly 15.3% of your income is withheld as an employee, to fund Social Security.
  • You pay half out of your pocket, and your employer covers the other half. As an employer, you don’t have to make quarterly payments to cover the tax, but you can avoid getting stung at tax time by setting aside funds to cover those taxes.

Each company has its own unique needs; no two companies are alike. So, see what is required for your company and invest accordingly. While the requirement may differ from one business to another, initially, you must be prepared to run on no profit.

Having a website for your business helps keep you up to date with the orders placed, on real time basis, and enables you to never fall back on delivery. Need-based-applications synchronised with your customer’s database can help you keep track of the items sold by your customer, so you know when the next order is likely to be placed. At HyperEffects, we pride ourselves in our ability to get your business on a platform that is used and utilized by millions every day. You can also get a personalized mobile app to connect with your clients on a personal level with customized offers, push notifications and many other interactive features that will save you the hassle of constantly being on calls. Enrol today for our free one hour session to understand more about this. We are here to help your business grow!

Hyper Effects | Grow Your Business

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