5 Essential Components of Starting a Small Business

Starting a New Business in San Diego, CA

Starting a small business takes tremendous work, but with adequate planning and a breakdown of the most essential requirements, you can get your business up and running. National City commercial insurance experts have put together a list of the top 5 things you need to start a small business.

1. Capital

Some entrepreneurs already have a nest egg and do not have to incur an initial amount of debt. However, this isn’t always the case. When a loan is needed, a lender will require sufficient assets, personal collateral, and financial reserves to withstand business fluctuations. Also, a solid track record and a reliable level of cash flow to pay back the loan must be proved.

2. Business Plan

A plan will be required if financial assistance is sought, and it will also provide a litmus test to see if an individual is really interested in all of the aspects required to run the business. The business plan should include an executive summary that takes a snapshot of the business as a whole. It should describe the agency, analyze the market, and project a route for the agency in the next 3 to 5 years.

3. Commercial Insurance

Commercial insurance provides protection against severe financial loss. Without it, a lawsuit or damages could easily destroy all of your hard work. General liability and property insurance in National City can pay for obligations and protect the assets of the agency, and it also covers legal defense if the business gets sued. Copyright infringement, libel, slander, and claims of false advertising are also covered under commercial insurance.

4. Website

An online website presence is mandatory in this day and age. Setting up a website may include costs for creation of the site, PPC marketing, and SEO services.

5. Time

If you already have a full-time job, you must decide how to delegate duties. Great time management skills are required for this endeavor. Without adequate time spent on the new business, it is destined to fail due to a lack of customer service or a number of other potential reasons.

If you’re starting a small business and need reliable insurance to protect your investment, reach out to American Tri-Star. In addition to business insurance, we also offer the affordable health, home, RV, and auto insurance National City residents prefer. Call 619-474-3900 today for a free quote.