Practical Considerations When Starting a Business
Starting a brand new business is an undoubtedly momentous and undeniably thrilling time for any entrepreneur, whether seasoned or novice. You are creating something from nothing, pursuing a dream, and filling a gap in your industry- you deserve to feel every ounce of that excitement. That being said, you also owe it to yourself to remain grounded in reality and seriously consider the practical (and yes, sometimes boring) aspects of starting a business. While it might not be the sexiest aspect of entrepreneurship, getting down to the nitty gritty of how you run your business will serve you extremely well as you work day-to-day and scale over time.
You can ease into this process by starting from a creative perspective, since there’s a good chance your entrepreneurial spirit lends itself to somewhat abstract thinking. First, consider how you want your business to “feel”. Too abstract? Let’s use an example: when it comes to sending out invoices or scheduling appointments, do you want those notices to come from you personally every single time, or are you okay with automating those administrative tasks? Depending on your client load, automation may be a necessary, albeit less personal option that will save you time and energy better used for other aspects of your business where you need to show up enthusiastically representing your personal brand. Ideally, whichever option you choose will leave your clients with the “feeling” you want attributed to your business.
When it comes to being compensated for your work, you’d be hard-pressed to find someone who doesn’t enjoy the feeling of a well-deserved payment hitting their account. You can, however, often find folks who are overwhelmed or down-right confused by anything accounting-related. The truth is, there are many important considerations to make when planning your financial strategy, and it’s better to tackle them sooner than later. Think about the process of acquiring a brand new client- how will they secure and retain your services based on a mutual agreement? Will they sign a contract? If so, what kind, and who will write it? You may be able to find a simple template online that suits your needs, or you may need to consult an expert on something more tailored to your business. Either way, it’s good practice to make sure both you and your client are protected by a clear and fair agreement. Once you have that agreement in place, you’ll obviously need to be paid for your work, so how will your client pay you? Many payment platforms charge a fee for using their services, so you’ll want to be clear on exactly how much it’s costing you to get paid, and factor that into your pricing accordingly. It’s critical that the payment process is smooth for both you and your client so there are no hiccups or delays as a result of payment-related issues. Oh, and it isn’t just your clients’ payments you need to sort out- you’ll also need to keep track of your own bills and expenses. This includes payroll for any staff you may have, accounting for taxes, and maintaining an emergency fund for unexpected expenses or lean times in your business, should they arise.
With so much to consider, it isn’t a surprise that many entrepreneurs outsource various aspects of their business, and with good reason! As we discussed in an earlier post (‘Are You Willing to Grow’), you do not need to fulfill every role within your business; in fact, there’s a good chance you shouldn’t- not because you can’t, but because you deserve to show up as your best self and let your strengths shine, rather than getting burnt out by tasks outside of your skill set that consume your time and stress you out. Starting a new business is a great opportunity to consider your strengths and how best to use them in a leadership role, as well as identify areas in which your business would be better served by outsourcing a specialist. For instance, many business-owners hire a VA (virtual assistant) to handle all accounting-related tasks, sometimes for as little as 5 hours per month! What takes a skilled accounting professional only a few hours could potentially save you days of financial headache- days you could otherwise spend growing your business. Whether or not you have experience managing contractors or employees, it’s worthwhile to consider how to leverage your existing strengths in harmony with niche-specific professionals you can work well with, afford, and trust.
While there is A LOT to consider when starting a new business, there is so much more fun, fulfillment, and success to be had when these practical considerations are addressed promptly and effectively in your entrepreneurial journey. Rather than feeling overwhelmed by the sheer amount of planning and responsibility outlined above, consider this article a starting point for identifying and delegating some of the least flashy, but most important aspects of your new business. For further discussion on some of these topics, make sure to read previous articles including ‘Are You Willing to Grow’ and ‘Your Business Process’ for more prompts and inspiration concerning the practical aspects of starting and running your own business.
Want to have a clear picture of all of the pieces of running your business, but aren’t sure where to start? Do you have a few employees and want to make sure that you have all of the necessary things in place for your business operations? Take a look at my free Operations Audit Workbook to give you a starting point. PS - filling this out in its entirety will get you started on creating your own SOPs for your business.
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