When thinking about starting a business you want to think about “Why are you starting the business enterprise?” Often times someone decides to start a business with the mindset they have more free time, home based, and have a flexible schedule. Unfortunately, you should avoid these myths. Most the time, starting a small business isn’t any of the things. Instead, it is long hours, working at home may be a distraction, less flexibility, and there are many hats to juggle. It’s completely different then working for a company and it is important to keep all of this at heart when deciding if starting a business is right for you. If it is, then let’s dive into getting started off with your business idea!
Attitude is EVERYTHING. You must always keep a cheery attitude. Many things are going to happen through the lifecycle of the company, both good and bad, and what is important is to keep a positive attitude.
BIGGEST OBSTACLES TO OVERCOME
Both biggest obstacles startups face whenever starting a business is money and reputation. You have to make sure you are able to stay afloat and have a way of financing when starting out. And reputation is also an obstacle because you don’t have a reputation or customers. Unless you start out with several customers, usually you are starting out very alone.
WHAT YOU NEED?
You need to give a product/service that people want to buy. Researching similar products/services is essential to see what else is out there that is much like your idea and then determine how your product will be much better than the competition. Additionally it is important to be able to bring experience to the desk. It’s the experience you have that will make the company. Typically, you would like to have a niche to help you take a focused approach and decide what type of company you need it to be. Lastly, you should consider if you can sell enough of your service or product to make a living. Are you considering able to cover each of the expenses and salaries that include a business?
A business plan is absolutely essential. What is a business plan?
Start with an executive summary, which is a high-level description of what the business enterprise can do. Next, you need a business information that lays out the business enterprise in detail. . Then, comes the market analysis, who is likely to be your customer and who’s your competition? Next, is organization management. Who is going to manage the business? Are you going to manage it yourself or will you hire someone from the outside to handle your business? Quite often you are starting managing the business yourself. Next, you need a sales strategy, what sort of sales strategy are you going to encompass? And lastly, it is advisable to include funding requirements and fiscal projections. What type of funding should you start the business and how much do you project to create?
A written plan is critical. It is absolutely essential you jot down the above info on paper.
There are lots of business plan templates available to help. Even though you are an established business, its not necessary anything complicated. Yet another resource is a basic roadmap. This breaks out calendar month by month projections for just two 2 years. What industry events will you attend? Just how many people will you hire? What type of marketing campaigns do you want to run?
Last, goals are really important. You must set specific goals in your business plan so you know what your location is heading.
MEANS OF FINANCING
How will you finance your organization? Some of the key problems to ask are how much money will you need to remain afloat? Will you be taking a salary? What will your non-salary expenses be? How many people do you plan on hiring the first year? What about company benefits? Even though you are by yourself, you will need benefits and insurance. They are all questions you should think about.
Should you self-finance or take out a loan? Self-financing is often recommended for those who have enough money in the bank to float the business as well as your salary for a year or two. This option reduces the pressure. The last thing you want is pressure from creditors. Loan products are going to be difficult to procure. In the event that you manage to get a loan, you will have to personal guarantee and you may need collateral.
There is also the chance for a financial business companion, however, a financial business companion can often result in meddling and pressure. It also may cause one to run the business differently then you envisioned. Remember, you are starting the business to place your own spin on it!
A fourth option is really a funding company. This is the viable option because they will often perform your payroll and invoicing for you personally. Sometimes the funding company provides a basic ATS system as well that could help you start. The downside to a financing company is often it is hard to breakaway. You should pay off loans with interest and in some cases it is not financially feasible to breakaway. If you are using a funding company, you want to be sure to understand the agreement and know very well what it takes to step from the funding company.