A viable idea and an entrepreneurial spirit can be enough to jumpstart a new idea. But once your initial excitement disappears, reality sets in. You’re about to take on an enormous challenge.
Starting and maintaining a business requires strategic planning, adequate resources, and sustained effort — even when times are tough. As the visionary behind your enterprise, you must develop a framework for your company’s success, protect your growing operation, and reward the people who help your organization reach new heights.
Here are three key things to consider when starting a business.
Before spending a penny, you must turn your business idea into a business strategy. Your strategy can be simple or more complex depending on the unique structure and needs, but it should answer critical questions, such as:
What products or services will the business sell?
What business structure makes the most sense? (Think sole proprietorship, partnership, LLC, corporation, etc.)
How will the company market what it sells?
When will the company turn a profit?
When should the firm hire employees?
How much capital will it take to launch the company?
Where will the startup capital come from?
How will you make a living from your business?
How will you provide benefits for yourself and your family?
How will you save for retirement?
Who takes over or inherits the company if you die?
Remember: Your business plan should evolve as your company grows and your personal circumstances change. A business plan is meant to lay the foundation for your business and guide your efforts in creating a sustainable enterprise that takes care of you now and leaves a lasting legacy.
You work hard every day to build a thriving small business. But the scary truth is that, without safeguards in place, years of effort could be destroyed in an instant.
As a small business owner, there are unfortunately many things that can jeopardize your business, from physical damage to your property, to an injury to yourself or an employee, or even a lawsuit or cybersecurity threat. Ensuring your business is protected against these things is a crucial element of its sustainability.
Do you have the proper protection to overcome those challenges? Depending on the nature of your business, you should explore various insurance policies, including:
Liability insurance to protect your business against lawsuits1
Cybersecurity insurance to cover your company in the event of a data breach1
Property insurance to cover damage to your firm’s building and the contents within it1
Auto insurance to cover costs associated with an accident in a company vehicle1
Workers’ compensation insurance to cover medical bills and lost time for employees hurt on the job1
Umbrella insurance to add an extra layer of protection when your other policies fall short1
Once your business is protected, you should ensure you’re also adequately covered. For example, if you’re unable to work for an extended period, disability insurance can keep money flowing into your household until you’re able to return.
You also need to prepare for when you’re out of the business permanently. When the time comes and you are ready to retire or step away from the business, it’s important to have a succession strategy already in place.
Remember: A succession plan is equally important in case you die or end up living out the rest of your days in a long-term care facility. Your succession plan can ensure your business remains in the right hands in the event that you can no longer manage it, while disability insurance can ensure that the life you have built for yourself is also protected if something happens and you can no longer earn an income from your business.
As your company grows, you may need to hire employees. But while building a team is an exciting phase of business ownership, it brings new challenges.
The labor market is competitive, and professionals are more demanding than ever when it comes to employee benefits. So, if you want to attract and retain the best available talent, you’ll have to offer workers an enticing suite of benefits. That way, they’ll feel secure, looked after, and most importantly, happy at work.1
Depending on your budget, company setup, and applicable employment laws, you may want to offer benefits like:
Health insurance
Health Savings Account (HSA) with an employer contribution
Disability insurance
Retirement account with a company match
Flexible schedules or remote work opportunities
Educational assistance
Pet insurance
Discounted legal and financial planning services
Vacation and sick time
Paid parental leave
Paid gym membership
Home office allowance
Professional enrichment stipend
Remember: As you generate more revenue and add team members to your roster, you should review and update your employee benefits package. That way, you stay competitive with other businesses in your market.
Starting a business is a complicated undertaking. But if you make wise decisions based on a sound strategy in the early days of your enterprise, you’ll be set up for long-term success.
Have questions about starting a new business, or ready to get started today? A New York Life financial professional can assist with life insurance and other financial solutions to help protect your business. Connect with one today!
1 Home / Auto, Liability, Cybersecurity, Property and Casualty, Workers’ Compensation and Umbrella Insurance are not offered by New York Life Insurance Company or its agent
This article is provided for general informational purposes only. Neither New York Life Insurance Company, nor its agents, provides tax, legal, or accounting advice. Please consult your own tax, legal, or accounting professional before making any decisions.
SMRU #5653658.1 exp. 5/11/2025