It’s easy to think about all the things you’re going to accomplish someday—you know, in the future when you finally have the right mix of experience and ambition to make your entrepreneurial dreams come true. While this line of thinking can certainly be aspirational, it can also hold you back from taking the plunge. If you’re always waiting for the “right time” when it comes to launching a startup, who’s to say it will ever arrive?
One thing is certain: The better you plan, the more prepared you’ll be when it’s time to act. CoverHound makes it easy to compare your startup business insurance options, so you can check that box right off the bat and remain confident that your fledgling venture is protected.
As one entrepreneur outlines for Inc., some of the best advice he ever heard came from Chris Schultz, another entrepreneur/investor, at a recent conference: “Don’t wait for somebody to give you permission.” This speaks to the external validation that we often seek for our ideas. Many aspiring entrepreneurs (or established entrepreneurs starting from scratch once again) believe in themselves… but not quite enough to spring into action without abstract “permission,” or approval, from others.
Instead of sitting back and waiting for everything to fall into place, try proactively getting your ducks in a row. This means laying the foundation for your soon-to-be company, including:
Funding: Will you be bootstrapping your startup with your own capital? Or will you seek outside funding, either from an angel investor or capital venture firm? Nailing down the financial realities of your company is step one.
Budget: Break down this larger investment into actual specifics. Which departments will you need to fund? How much will equipment and technology cost? You’ll need a highly detailed budget moving forward (which is sometimes a challenge for CEOs focused primarily on their “big picture” vision).
Personnel: Who will you need along for the ride to make your dream come true? No one is an island; you’ll likely need help in IT, sales, content marketing, social media or another area. Think about who you want to bring on board and how much it will cost to get them to come aboard.
Location: Where should you set up shop? For some companies, it’s important to be situated in a tech hub. For others, it makes more sense to operate cheaply in a less-competitive market—perhaps an up-and-coming secondary city.
Insurance: It’s all smooth sailing until it’s not. What if someone accuses you of infringing on their copyright? Or your dream commercial space refuses to rent to you because you don’t have the necessary liability coverage in place? Forgoing insurance at the outset will save you a small monthly premium, but it leaves your startup wide open to expensive catastrophe.
There’s no magic formula for starting a company. At the end of the day, it comes down to a mixture of smart timing, thorough planning and a little bit of optimism.
Want to learn more about the various types of startup business insurance you’ll need? Get a quote through CoverHound today!