When thinking about starting a business you want to consider “Why are you starting the business?” Often times someone decides to start a small business with the mindset they have more free time, home based, and have a flexible schedule. Unfortunately, it is important to avoid these myths. Majority of the time, starting a business isn’t any of the things. Instead, it is extended hours, working at home can be a distraction, less flexibility, and there are lots of hats to juggle. It’s very different then working for a company and it is vital that you 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 with your business idea!
Attitude is EVERYTHING. You have to continue to keep a cheery attitude. A lot of things are going to happen during the lifecycle of the business, both bad and the good, and the most important thing is to keep a positive attitude.
BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles startups face whenever starting a business is money and popularity. You need to make sure you can stay afloat and have a way of financing when getting started. And reputation is also an obstacle because you don’t possess a reputation or customers. Unless you start out with a group of customers, most of the time you are starting out very alone.
WHAT YOU NEED?
VIABLE PRODUCT
You need to provide a product/service that people need it. Researching similar products/services is essential to see what else exists that is much like your idea and then determine how your product will be better than the competition. Additionally it is important to be able to bring experience to the desk. It is the experience you have that may make the company. Typically, you would like to have a niche to help you take a focused approach and decide which kind of company you want it to be. Lastly, it is advisable to consider when you can sell enough of your service or product to make a living. Will you be able to cover each of the expenses and salaries that include a business?
BUSINESS PLAN
A business plan is absolutely essential. What is a business plan?
Focus on an executive summary, which is a high-level description of what the business enterprise is going to do. Next, you need a business description that lays out the business enterprise in detail. Then, comes the market analysis, who is going to be your customer and who’s your rivals? Next, is organization management. Who’s going to manage the business enterprise? Will you manage it yourself or are you going to hire someone from the exterior to handle your business? More often than not you are starting off managing the business yourself. Next, you will need a sales strategy, what sort of sales strategy are you going to encompass? And lastly, it is advisable to include funding requirements and personal projections. What kind of funding do you need to start the business and just how much do you project to create?
A written plan is critical. It is absolutely essential you jot down the above information on paper.
There are various business plan templates open to help. Even if you are an established business, you don’t need anything complicated. over here is a easy roadmap. This breaks out month by month projections for just two 2 years. What trade shows will you attend? How many people will you hire? What sort of marketing campaigns will you run?
Last, goals are really important. You must set specific goals in your organization plan so you know where you are heading.
MEANS OF FINANCING
How will you finance your organization? Some of the key questions to ask are how much cash 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? Think about company benefits? Even though you are by yourself, you will require benefits and insurance. These are all questions it is advisable to think about.
Should you self-finance or take out a loan? Self-financing is often recommended if you have enough money in the bank to float the business and your salary for a year or two. This program reduces the pressure. The last thing you want is pressure from creditors. Loan products are going to be difficult to procure. If you manage to get a loan, you will need to personal guarantee and you will need collateral.
There is also the chance for a financial business mate, however, a financial business mate 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 put your own spin onto it!
A fourth option is a funding company. It is a viable option because they will often do your payroll and invoicing for you. Sometimes the funding company will provide 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 have to pay off loans with interest and oftentimes it is not financially feasible to breakaway. If you use a funding company, you need to be sure you understand the agreement and know very well what it takes to step from the funding company.
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