Top 5 Things Most Start-ups Forget

Congratulations on your new start-up business. You’ve focused on financing, marketing, staffing, and positioning. Unfortunately, many new start-ups miss these important considerations when they launch their business. Here are the things you might have forgotten to consider, from hiring the right employees to fireproof storage.

• You Get What You Pay For

It has become a trend for start-ups to offer recent graduates a “great opportunity” for learning and growth. Unfortunately, this great opportunity often includes the opportunity to be paid very little. While the desire to gain work experience might lead employees to your door, the desire for a bigger pay check will soon lead them away. Meanwhile, you’ll be paying those tiny salaries to people who may lack the skills you need. You’re better off to pay for quality employees with the developed skills your company needs and pay them a competitive salary. In fact, a few skilled employees can often accomplish more than a larger number of inexpensive, recent graduates.

The bottom line is lower salaries are bad for business. Studies have shown that paying better wages results in better employee performance and productivity and a decrease in employee turnover. Don’t waste your time and money constantly trying to recruit, hire, and train new workers to replace those who have left. Even the most motivated employee will eventually be negatively impacted by either the low pay or negative attitudes of their fellow workers.

• Do What You Do Well

You’ve focused on hiring all the right people for your start-up. Did you consider that you might not be the right person? People with the drive and vision to create their own businesses often have trouble delegating. Even when they do, they tend to delegate everything except leadership. Perhaps you hired the specialists you need, from IT to accounting. Did you also plan who would be doing the day-to-day management?

Let’s face it, many of the best business leaders are terrible managers. Realize this might not be your strength. Even if you are a brilliant manager, think if you will you have the time and energy to take the lead for every management issue. Ordering office supplies, tracking employee vacation, and all the other business demands can quickly take your focus off the big picture and bog down your day. Hire the people you need to take work off your plate. Don’t risk losing customers and good employees due to gaps in your management team.

• Get Organized

Small start-ups are particularly likely to operate without a lot of documentation. While you might be great at flying by the seat of your pants, if you have even one employee, you need to get the right paperwork in place. This is probably the thing you want to focus on least while you are busy trying to get your company launched and profitable. Take the time, and write things down. Make sure any employees have their benefits and other expectations in writing. Have them sign employment contracts before they start work. You do not want your employees to be able to walk away with your customers, suppliers, and trade secrets.

Establish basic policies and procedures for your business. This will simplify training for any new employees and make it easier for others to cover when someone is out sick. Sure, it will take you time to write things down (or get someone else to do it for your review) but a few hours of your time initially will prevent countless interruptions and wasted time later. Writing out these types of details is also an important chance to identify problems and areas that need more oversight. From money handling procedures, to how to take a sick day, these written guidelines can help lead the way for your future success while making the workplace better now.

• Protect Your Online Identity

Once you pick out a great domain name for your company and purchase it, don’t stop there. Protect yourself and your customers by purchasing the near-twins to your domain name. It can well worth the small annual cost to own the .com, .co.uk, and .net versions of your domain and have them redirect traffic to your home page. Once your company becomes the next best thing and well-known, scammers may have already purchased a similar domain name in an attempt to funnel away your clients.

• It Can Happen to You

It is easy to assume that disaster will never hit you. It might. Insurance coverage is a must. Usually this is required for start-ups seeking financing but self-funding businesses may let this slide. Keep in mind that you need protect from everything from accidents, fire, theft, and liability.

Even a one-person company with no inventory, operating out of a house, still has risk from fire, theft, and other disasters. Consider what would happen to your business if your business records, client contact information, and computer files were lost. Protect yourself by backing up computer records regularly onto the Cloud or a portable drive stored elsewhere. Keep records in a theft-proof, fireproof cabinet or safe. If your business handles cash or client checks, make sure they are stored in a fireproof safe. Not only will this protect your business, it might also qualify you for a discount on your insurance plan. Set up clear plans for handling money and documenting any valuables in your office in case you need to file an insurance claim later.

Better Prepared

While dealing with these types of routine issues may be the last thing on your mind when launching your start-up, don’t overlook them and put your company’s success at risk. A bit of extra diligence now can pay huge rewards down the road.