For entrepreneurs looking to grow their reach and bring their ideas to life, launching a new business can be an exhilarating adventure.  

 
While starting a new business can be incredibly easy, taking it to the next level and growing it into a successful company can be challenging.  

That’s why statistics show that as many as 90% of start-ups fail, with up to 20% struggling to make it through their first year on the market.  

There’s no guaranteed way to ensure the success of any business, but there are precautions you can take to improve your chances of achieving the success and recognition your start-up deserves.  

Keep reading, and we’ll explore some of the crucial precautions that every start-up leader should take in the first year after launching their organisation. 

 
 

Look Beyond Standard Business Insurance

 
Business insurance is crucial for any company, but there are hundreds of policies and additions on the market, so choosing the right one can be tough. Business insurance providers can either be dedicated insurance brokers or companies that work exclusively with organisations in your industry.

Also, there are some additions to policies that will be more suited to certain business types than others. For example, if you have a physical office, then you might benefit from some additions that won’t affect remote start-ups.

With so many types of business insurance on offer, it can be hard to make the right decision for your company, so take the time to review all your options and choose the one that fits with your budget and covers your start-up for any potential eventuality.  
 

Protect Vital Team Members

 
One type of insurance that can be particularly useful to almost any start-up, no matter what its niche or type, is key man insurance. Many business owners might ask themselves: what is keyman insurance? Key man, or key person, insurance, is a type of life insurance policy that covers your business in the event of the death of an owner or important senior team member.

The cost of the premium is paid by the business, and the company is the beneficiary in the event of the death of the individual. The money can then be used to pay legal fees and deal with the business ramifications of the loss of this vital staff member. Check out mykeymaninsurance.com to find out more about key man insurance and why it’s so important for start-ups. 

 
 

Invest In Cybersecurity

 
Most modern businesses use some form of digital technology, even those that also have a physical presence. Whether it’s your business website or data on your computers, digital information is incredibly valuable, making it a target for criminals. Therefore, even if you only have a small business with a limited online presence, you need to invest time, energy and money into a robust cybersecurity policy. To begin, you need to make sure every work device is protected by an anti-virus software.

It would be best if you also considered where you store your business’s data. Cloud software tools are a scaleable, secure solution that is often better than a physical server for many start-ups, so explore your options to ensure that your data is always safe but accessible to members of your team when they need it.  
 

Manage Licenses and Legal Obligations

 
As a start-up operating in a certain industry, you might need certain licenses, insurance policies or other documents in order to operate legally. The regulations your start-up has to comply with will depend on the services and products you offer, so you’ll need to conduct thorough research.

Ignorance isn’t an excuse, so you need to make sure that you research the information you need and get it ready in case of an audit. To stay on top of changes in your market and the need for new documents, follow regulatory organisations in your industry and influencers who will share updates on the latest changes in the rules.

You’ll then be able to ensure that you’re always fully compliant with any relevant rules and ready to adapt to any changes that occur as your organisation expands and achieves the success you’ve always desired.  
 

Fix Interest Rates on Debt Where Possible

 
For most businesses, taking on some form of financing is crucial, especially in the early stages. Still, with interest rates rising rapidly, even a small loan can become expensive quickly. The rising interest rates are already putting pressure on many small businesses across the UK and will most likely continue to do so for many months to come before inflation is reduced. Over the long term, you never know what’s going to happen and when rates will rise again.

As such, if you are thinking of taking out a loan for your start-up, then you should try to find a fixed rate rather than a variable one. If you already have debt attached to your business, then consider fixing the rate if you haven’t already and are able to refinance. This approach will ensure that you know exactly how much you have to pay for your business financing and can budget accordingly, no matter what the UK’s economic outlook is moving forward.  
 

Remain Flexible and Open to New Ideas

 
As the old adage goes: ‘the definition of insanity is doing the same thing over and over again and expecting a different result’. While your initial approach to your start-up business might be successful, it might not work as well in the future. Markets change, and customers will have new options and expectations.

As such, to ensure your ongoing success and business growth, you need to make sure that you stay flexible and adapt your approach accordingly. Using a flexible approach and always being open to new ideas will help you to grow your business and adapt to new market developments and raised customer expectations.

The tips in this article should help you to take all the initial precautions you need to protect your new start-up venture, but as it grows, you will need to keep reviewing your strategy to ensure that you’re prepared for whatever happens in the future.   
 





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