Let’s face it: becoming an entrepreneur isn’t all sunshine and rainbows. It comes with a lot of blood, sweat, tears … and, oh yeah, responsibilities. And said startup responsibilities aren’t always as glamorous as they may seem. So, what’re some of the not-so-fun tasks you take on as a startup? Let me, an experienced entrepreneur, give you the rundown.
Startup Responsibilities For Business Owners
When you become an entrepreneur, you know what you signed up for. And sometimes, it can be a lot of work. Sure, entrepreneurship has its perks, like being your own boss and pursuing your passion. But, it also comes with a few tasks that you may not look forward to crossing off your checklist. However, these seven responsibilities are must-dos if you want to get your venture off the ground.
1. Writing Out Your Business Plan
Ah, the foundation of your venture: your business plan. Your business plan outlines everything from your target market to your financial projections. But just like Rome, business plans cannot be built in a day. They take time, thought, and plenty of revisions. And if you’re not big into writing, this may not be the most glamorous part of your entrepreneurial journey.
Writing out a business plan with dozens, if not hundreds, of pages may seem a little dull. But, it’s completely necessary if you want to kickstart your business, find investors, and understand your market. And, it’s not something you can afford to procrastinate on.
To get your business plan responsibilities out of the way, make sure you conduct lots of research, keep it concise, and chip away at it each day. Don’t be afraid to ask someone to look it over, too. And, update it over time as your business changes and grows.
2. Securing Funding
Nearly one out of every three small businesses (29%) fail because they run out of capital. That’s why securing funding is an oh-so-important part of becoming an entrepreneur. But, it’s certainly not the most glamorous task on your list (using said funds is!).
Securing funding for your new business can sometimes take loads of time and trial and error (e.g., applying for a loan and getting rejected). But, the good news is that there are a ton of business financing options for entrepreneurs like you at the tip of your fingers, such as:
- Bank loans
- SBA loans
- Business credit cards
- Angel investor
- Personal funds
- Friends and family
Give yourself ample time to secure funding because it doesn’t always happen instantly. Once you receive the funding you need, you can begin growing your business.
3. Registering Your Company
One of the funnest parts (at least in my opinion) is selecting a business name. And once you narrow down a name and ensure it’s available and legal to use, you may need to register your business with said name.
The state you operate in and your type of business structure generally determine how you need to register your business name. For some businesses, registering is as easy as filling out a few documents when you form the business. Depending on your state or locality and business, you may need to complete a few more steps. To ensure you’re properly registered, reach out to your state for more information.
4. Setting Up Tax Accounts
Another not-so-glamorous aspect of running a business is taxes. And unfortunately, they’re unavoidable. So, part of your entrepreneurial duties include setting up tax accounts for your newfound company.
Like with your business plan, don’t put off getting your tax accounts in order. Depending on your business and location, you may need to get:
- Federal Employer Identification Number (FEIN)
- Business tax ID number
- State tax ID number
- Local tax ID number (if applicable)
And for some businesses, the list doesn’t stop there. To make sure you’re registering for all of the tax accounts your business needs, do your research and consult the IRS, your state, and your locality.
5. Getting Accounting Up And Running
Accounting isn’t the most alluring part of running a business. But, it’s a necessary part. And if you want to keep your books and finances in order, you’ll need to have a reliable and easy-to-use accounting method and trusted accountant.
Setting up books for small business is not always fun (or easy). You have a couple of different methods to choose from to get your books in a row and to manage day-to-day transactions:
Before you make any decisions when it comes to your accounting, weigh the pros and cons of each option. And, compare things like cost and ease of use. For example, you may decide to go the accounting software route to avoid making accounting mistakes and to save some money instead of hiring an accountant right away.
Whichever method you choose, do your research to make sure you pick the one that is best for your business. And to ensure your books are as accurate as possible, use your accounting method in conjunction with an accountant.
6. Handling Legal Tasks
Trust me, the last thing you want to deal with when trying to get your startup off the ground is a legal issue. So, you’ll want to do whatever you can in your power to avoid any issues in the future.
Dealing with legal tasks may sound like a pain in the rump, but they are necessary if you want to steer clear of penalties and problems. To ensure your business doesn’t run into any legal roadblocks in the beginning (or later on), consider hiring a small business lawyer. In addition, you should:
- Get to know all applicable business laws
- Apply for tax numbers as soon as possible (ahem, #4)
- Set up business insurance policies
- Get all necessary permits and licenses
7. Recruiting And Hiring Employees
Sure, hiring employees for your venture can be exciting. But, it can also be stressful and time consuming, which is why it made this list of not-so-glamorous startup tasks.
Before you begin recruiting and hiring employees, make sure you are prepared. Do your research, write out a solid job description, and find out the best places to post your job opening.
After posting your job opening, take some time to weed through applications and find the ideal candidate for the job. Conduct interviews, get to know the candidates, narrow down your pool, and make your decision.
Once you hire an employee, the work doesn’t stop there. You need to have the worker fill out new hire paperwork, set up payroll, and withhold the proper taxes from employee wages. But, you can take a big sigh of relief knowing that one of the biggest tasks is crossed off your to-do list. And, you can look forward to your business (hopefully) growing and prospering for many more years to come.