Building a business can be a difficult task. At any stage of the venture, there are critical decisions that can have long-reaching consequences far into the future, and these may not be apparent until months or years later. For this reason, it is key to implement thorough and well-researched planning with careful thought paid to future operations. Although it is impossible to cover every eventuality and the course of a company’s development can branch in unexpected directions, it is wise to make an informed decision. With that in mind, this article looks at the best strategy for building scalable infrastructure for the long-term. We will cover everything from resources to funding.
Premises
Where you are going to trade from is a decision that every business, big or small, will need to consider. There are ways of doing this that can tie you into a particular route for a long time, and others that are much more flexible. Which choice makes the most sense for us? We should consider what the nature of your business is? It is not uncommon these days to be almost solely online without the need for face to face contact with customers. If this describes your operation, then you could consider starting small and working from your home? Of course, this may not be possible if you require a large amount of storage or the ability to manufacture then commercial premises may be unavoidable. But many questions will steer your choice of premises. Be careful of the detail of the lease as they often have hidden clauses and requirements that you are liable for refurbishment or renovation of normal wear and tear damage. Have a lawyer read over it before signing anything, as it could save you a fortune in the long run. Also, remember that it is possible to negotiate these contracts if they are keen to get the place filled they might be flexible on the terms or length of the contract.
Digital Presence
In the past referring to digital presence as part of your business infrastructure would be laughable, however the world has changed, and even virtual things have real-world value. Getting the best domain name can be critical, as it can affect your appearance and reputation. Where possible get a top-level domain such as .com, or a country-specific one such as .co.uk or .fr for the place you are based. Even if the website is less key but the domain is poor, it will make it look cheap, so think about how likely you would be to click on a .click or a .loan website? A social media account with a sizeable genuine following is an asset to your business, so don’t neglect to grow these, as it will bring you. Customers, now and increase the sell-on value of your business should you ever consider it.
Staffing
You can’t do everything yourself, at least this will be true for the majority of businesses. But it can be very tricky to figure out the best way to get some help. Taking on staff is a big step, but this plunge can be done in many different ways, and depending on your situation and plans there are many options. The traditional way of employing people would be to put them on a full-time contract, which is great if you are sure you need someone (or more than one person) there all the time, and for the long-term then this is the best option. The drawback to consider with this route is that once you take people on in this fashion it may be difficult to get rid of them without facing the possibility of them taking unfair dismissal action. One way to avoid this is to have a probationary period in any new contract, usually, these are for three or six months. Other alternatives are to have part-time or fixed-term contracts, this way you are not committing to as much. You can also get casual or agency workers for short term needs, be aware this can be an expensive option and you won’t necessarily get the best people.
Vehicles & Transport
You may need transport for either goods or people. If you are delivering products, there are essentially two options for this; either use your vehicles or send items via couriers and mail carriers. If you are to make your own deliveries, then you need to choose the size and brand of vehicle you need. You can save money by purchasing a good quality used truck, say your preferred brand is International Trucks, you can find an international dealer. Research the history of the vehicle before buying, and you should be able to make a good deal. If you are looking to use a courier, it is essential to pick the correct one. You should balance delivery speed, price, tracking facilities, and insurance offered depending on your needs.
Company Structure
There are different ways to organize a business, and to the uninitiated can seem daunting. But with a bit of guidance and explanation, it is not as complicated as it may have seemed at first. For this article, we are assuming you are in business in the USA, although, most western countries have similar setups, the four main business types you can register are as follows:
Sole Proprietorships: The simplest and easiest way to set up in business, you are simply an individual making their own living and are responsible for reporting your income and expenditure and paying taxes on any profits made.
Partnerships: The same as a sole proprietor, but with two or more people involved.
Corporations: A corporation is a separate legal entity from its owners (shareholders) and is run by the board of directors on their behalf. The advantage of this is that in the event of things going wrong, you will not be personally liable to repay any debts in the event of an insolvency.
Limited Liability Company (LLC): A Limited Liability Company is something of a halfway house between a partnership and a corporation. It has the flexibility to treat profits as income for partners or profit for tax purposes.
