All buildings require a solid base. The same holds true when you are “building” your business. First comes the plan, then it’s time to CREATE THE FOUNDATION for your business.
The foundation consists of the fundamentals required to legitimately go into business and move it forward. There are essentials that should be employed, no matter the size or the company. It is better to do these things from the start, because sometimes it can be very difficult to work backwards after the business has already been established. This article will focus on the three most essential elements that if ignored or shortchanged could mean trouble for your company.
Legal Standing includes things like registering the name of your business, determining your business entity, obtaining licenses, a federal tax identification number and lots of other stuff. These things protect you and your business from problems with the IRS and others who may attempt to steal your ideas.
Communications are all the ways that customers, clients, vendors and partners keep in touch or learn more about your business. Web sites, web stores, social media accounts, newsletters, direct mail, email, phone numbers, answering services and even employees are all forms of communication that must be considered when going into business.
Financial Management is the third element, but probably most important. There is no need to go into business if you aren’t going to properly track the income and outgo. How will you transact sales? What forms of payment will you take? How will you pay for supplies and services? And let’s not forget all of the reports: Budgets, Profit & Loss Statements, Cash Flow Statements, and Balance Sheets are all needed to make sure you are managing the business efficiently.
Your company must have the support of a solid foundation so that even if it goes through trials and tribulations from time to time, it will make it through and continue to grow. You don’t want to take any shortcuts with your business.
About the Author
Ayesha R. Patterson is a business consultant, career coach, and author of The Subtle Shark: Redefining Career Achievement. She has more than 20 years of experience in various leadership positions in the retail, production and service sectors. She has managed multiple facilities, regions, and territories with responsibilities for 400+ and annual revenues in excess of $50 million.
