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Managing your business / Critical First Steps in Starting a Business

Critical Steps in Setting up a Business

• Decide on the Business Structure
• Register your business with income tax and Bituach Leumi national insurance
• Understand your tax responsibilities  - it is best to see an accountant
• Decide on Insurance

Business Goals

• Give a detailed description of the business and its goals and how it will make money
• Outline the advantages you and your business have over your competitors.
• List the skills and experience you bring to the business.
• List your businesses strengths and weaknesses as well as the opportunities in the market as well as potential threats

Office Setup

• Consider what location  is best suited to your needs – consider a home office
• Find premises, have a contract, understand the tax obligations Arnona
• Purchase equipment, furniture and supplies
• Consider layout of premises
• Choose a computer
• Get internet access
• Consider the software you need

Building a Brand

• Decide what your company stands for – what are your core values
• Find a graphic artist
• Develop a logo, marketing materials – a look
• Build a website
• Ensure consistency in all aspects of the business; service, pricing, products and services

Marketing

• Build a marketing plan
• Do the research before you start the business, on customers the target market , the competitors, the gaps in the market
• Ask "why should anyone buy from me?"
• Set objectives in marketing
• Consider the strategies for achieving your objectives
• Consider your pricing, promotion, distribution, product, and the location
• Have a marketing plan for your website as well
• Market your site and business every day

Sales

• Have a sales plan, consider your pricing, methods of selling methods of payment
• Ensure consistency in sales and pricing policy
• Consider accepting credit cards
• Consider point of sale material
• Consider selling on line, ensure secure payment systems

Finances

• Decide on your business model
• Ensure you do have enough working capital for the first 6 months
• Find the capital, understand where you can borrow money and at what rate
• Make a list of start up expenses
• Set up cash flow spread sheet, list all your fixed and variable costs
• Understand what your break even point is – when you start making money
• Understand how much profit you have to make to survive and thrive
• Set a  separate business banking account
• Clarify your compensation expectations and where that money will come from

Operations and Other

• Ensure you network and spread the word, you can't be shy if your in business
• Ensure you have excellent support people, technical, legal, shipping, courier  services
• Be clear with how the business will be managed on a day-to-day basis. How will do what and how will you know
• Account for production and delivery or products and services

Employees

• Hire for attitude, train for skills
• Decide on employee status, there are advantages and disadvantages with employees and the self employed
• Be very familiar with employee law and rights and obligations to employees, decide on benefits and working structure
• Develop a training plan, to get people efficiently on-board.
• Set work goals have clear expectations and communicate them
• Have a job description