Starting a new business can be exciting, but realising your entrepreneurial ambitions isn’t easy. According to commercial insurer RSA, more than half of new firms fail within five years, so the challenges facing fledgling enterprises are clearly considerable. To make your new company more robust and to give it the best possible chance of long-term success, it’s worthwhile bearing the following three tips in mind.
1) Create a detailed business plan
The quality of your business plan will have a major bearing on the prospects of your firm. Creating a thorough, well-researched and realistic document that sets out your idea, objectives and any potential problems should help you to get your enterprise off to the best possible start. Your plan should cover a full range of issues, including relevant regulations, the size of your target market, your competitors, sales projections and financial forecasts. If you’re not sure how to put together an effective business plan, look for advice and information online. You can also access templates over the web.
2) Put effective disaster management procedures in place
It’s impossible to tell if and when disaster will strike your organisation, which is why it’s so important to put in place effective disaster management procedures. When you’re making these preparations, consider the full spectrum of potential problems. For example, to ensure your operations don’t grind to a halt in the event of a power cut, you may benefit from investing in a backup generator. This should have a capacity that meets your firm’s power requirements. Generator providers Advanced Diesel Engineering Limited offer solutions ranging from 13kVA to 3500kVA, so before you select a particular system, it’s important to assess your precise power needs.
Meanwhile, to ensure you’re able to carry on functioning if your premises are affected by problems like fires or floods, you may want to establish a fall-back workspace. Depending on the nature of your business, you may be able to plan for your personnel to work from home if your premises are made inaccessible or unusable for any reason. Regardless of the specific disaster recovery plans you put in place, make sure you test them on a regular basis so that if the worst does happen, your company knows exactly how to react.
3) Take out suitable insurance
Taking out the right insurance policies can help to protect your business too. Certain forms of cover are mandatory, such as employers’ liability and – if your company uses vehicles – motor insurance. However, there are many other policies on offer that are not required by law but that can play an important role in safeguarding businesses. For example, buildings and contents cover can protect your firm if your property is damaged by floods, fires or burglary. Business interruption insurance can prove to be important as well. This covers you for any periods when you are prevented from trading normally due to damage to your property. Another form of protection that may benefit your organisation is legal expenses cover, which pays for the costs associated with defending or pursuing claims through the courts.
By following guidance like this, you should be able to make your business more robust. Although there are always perils facing new companies, paying attention to these tips should reduce your risk of failure.