Nowadays, most business owners focus on the technical aspects of growing their companies. Crafting the right digital marketing campaign, securing funds, leveraging the latest technology and so on are just one side of the coin. The other side is less talked about as it involves a ton of paperwork, bureaucracy and enough red tape that you can drown in it. Still, even that is vital for your business growth and development.
Just like every electrical company needs electricians insurance, for instance, every other company needs corresponding insurance policies depending on the nature of their business. Neglect is such an important aspect and you may end up losing everything due to a single lawsuit. So, with that in mind, let’s have a look at the non-technical aspect of growing your small business.
Choosing the right business structure
A business structure is a foundation for your company. It determines the amount of liability for the owner, taxation rates, which permits or licences you may need and so on. There are different types of business structures with their own set of advantages and disadvantages so make sure you choose wisely.
For example, a Limited Liability Company (LLC) is the most common type of business structure somewhere between sole proprietorship and corporation in terms of liability and other factors. It’s also the most suitable type of structure for SMBs. Of course, should circumstances change, you can also change your business structure later on to suit your business needs.
Deciding on the right insurance policy
Business insurance is optional but considering how hazardous things can get if someone decides to file a lawsuit against you or your company, then it’s a very good idea to have proper policies in place.
Which policies you’ll need depends on the nature of your business. However, an insurance policy that’s an absolute must is business liability insurance. This insurance policy protects you from any legal issues and covers any legal fees in case of a lawsuit. Without this insurance, all the costs associated with any legal affairs go straight out of your own pocket.
Obtaining necessary business licences and permits
Obtaining the necessary business licences and permits is an important step in starting a business. Depending on the type of business you are running, you may need to obtain multiple licences and permits from different government agencies. It is important to research what types of licences and permits your business needs before applying for them.
You should also make sure that all of your paperwork is filled out correctly and that all fees are paid in full before submitting your application. Moreover, it’s important to keep track of when each licence or permit expires, so that you can renew them on time.
Finally, if you have any questions about the process or need help understanding which documents are required, don’t hesitate to reach out to a professional who specialises in obtaining business licences and permits. It’s better to make sure everything is in order than it is to operate without a licence or permit, which can result in hefty fines and even your business being shut down.
Growing your small business requires a lot of effort and dedication in terms of not just technical aspects, but also non-technical ones like choosing the right structure, obtaining licences, insurance, permits and so on. It may not be pretty, but this part of running a business is quite necessary.