If you have always wanted to be your own boss, you may see the launch of your small business as a life-changing milestone. There are good reasons for that, as your new venture not only gives you independence over career, but also lets you attain success that is often impossible while working for someone else.

But as you start the activities of your new business, you may find a few challenges to be a bit overwhelming. With that being said, being aware of key points can prepare you for these curveballs and grow your business despite their presence.

To guide you through this thrilling journey, here are 5 things to know when you start a small business.

1. You Need to Put Everything In Writing

Even when you are working with friends or family, conducting your transactions on verbal agreements can be one of the biggest mistakes you can make as a business owner. Whether you are selling products or delivering digital services, you have to protect your business through legal tips and contracts at all times.

As a new business owner, the thought of writing these contracts, getting signatures, and maintaining their updated clauses may run a shiver down your spine. By learning what is contract lifecycle management and how to execute it with helpful tools, you can easily stay on top of these requirements without adding unnecessary stress to your plate.

2. You Have to Pay All Applicable Taxes

Some new business owners often think that running a one-person operation or a freelance-based business may help them steer clear of tax obligations. But the truth of the matter is that whether you run a sole proprietorship, partnership, or corporation, you have to pay some form of taxes for running your business.

In fact, failure to keep up with tax obligations such as payroll tax can land you in legal trouble. Keeping this in mind, make sure to hire an accountant for your team. If you are working on a tight budget, you can also enlist online tax accountants to help you with these requirements.

3. You Need to Establish Excellent Communication

If you have to deal with a variety of customers on a daily basis, the activity can easily take its toll on you. Similarly, in case you have a handful of employees on your team, communicating with all of them at once may get strenuous. Apart from exploring effective ways to communicate with customers, you can use essential tools to improve internal connectivity.

These measures can include the use of a customer relationship management software or an employee workflow handling tool. These approaches can ensure that you are able to fulfill all the requirements of effective communication. In turn, you can see its positive results in your everyday processes.

4. You Have to Obtain Financial Protection

From brick and mortar stores to eCommerce retailers, every business needs financial protection in the face of unforeseen events. This cushion comes in the form of business insurance that allows you to cover your premises, property, employees, and reputation against a variety of risks. In cases such as workers’ compensation insurance, this also becomes an obligatory requirement almost everywhere in the U.S.

By exploring different business insurance policy options, you can find the level of financial coverage that you require on an ongoing basis. This allows you to stay strong in the face of many challenges, and lets your business recover from them without putting a massive dent in your bank account.

5. You Need to Perform Consistent Reviews

Whenever you are looking for tips for starting a successful small business, you can stumble upon suggestions such as making a business plan and marketing your business. But when your business goes past the phase of initial growth, it calls for possible changes to your foundational approach. This lets you improve your operations in the light of market conditions and current events.

Keeping this in mind, make it a habit to execute consistent reviews every 6 months to a year for your business’ performance and growth. This allows you to make necessary changes to your venture and lets you manage a formidable operation in the long run.

These suggestions give you the basic knowledge you need to take your business from the foundational step to the top of the ladder. As long as you are vigilant in executing these actions, you can easily see the improvements that they bring to the table for your venture.