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13 tasks for starting a business |
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Written by Noric Dilanchian
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Friday, 10 October 2008 |
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Yesterday I received an email from India asking for advice on how to start an IT consultancy business.
I'll share my answer. Most of it applies to all types of businesses.
The email from India asked: "How do I start my company, which persons do I contact, and what resources should I acquire."
My reply and advice is set out below.
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Thank you for your email enquiry. I would advise you to focus on 13 tasks below.
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Set a starting date
- Confirm your business and personal goals, in particular define the
scope and nature of the services you intend to provide and how you
intend to charge for those services (eg the rates you will apply)
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Develop your core planning documents (eg business plan, marketing plan and project management methodology)
- Select an advisory board or colleagues to give you good counsel
- Select an accountant
- Select a lawyer
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Select a bank, set up a business account and perhaps apply for a line of credit or loan
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Select an insurance broker, if appropriate; obtain all appropriate insurance
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Install computers, set up your office network, put in furniture and equipment
- Select a telephone system and appropriate Internet access
- Prepare stationery and print business cards
- Join business and professional organisations and appropriate social networking sites, it helps greatly if you also have a website
- Implement a good accounting system and tax payments compliance system; ensure legal compliance generally against local law
At your start-up stage my firm helps IT consultants with four types of services.
1. Preparation of a template IT contractor services contract (India like Australia follows the English contract law and the IT industry globally has similar approaches and documentation). This involves a charge of about Aust$500 if I was to do it.
2. Preparation of advice on project management for IT consultants. This involves a charge of about Aust$300 if I was to do it.
3. Trade mark registration. This is not immediately necessary unless your venture is going to work off a name, logo or domain name that you consider to be particularly valuable. It would be best for you to engage a trade mark lawyer in India in any event.
4. Enterprise and business structuring (eg company formation, negotiation of licensing agreements, employee contracts, contractor agreements). For you I would not provide this services because I don't practice the law of India and business structuring and taxation law have very local features for which you really should consult a local adviser.
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My above advice reflects my experience in the establishment of hundreds of businesses over 25 years.
I moderated my fees proposal considerably due to the country of origin of the email.
Would you change or add to my tasks list? Comments welcome.
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