When thinking about starting a small business you want to think about “Why are you starting the business?” Often times someone decides to start a small business with the mindset they will have more free time, work at home, and also have a flexible schedule. Unfortunately, you should avoid these myths. Most the time, starting a business isn’t any of the things. Instead, it is long hours, working at home can be a distraction, less flexibility, and there are lots of hats to juggle . It’s completely different then working for a company and it is vital that you keep all of this at heart when deciding if starting a small business is right for you. If it’s, then let’s dive into getting started with your business idea!
Attitude is EVERYTHING. You have to continue to keep a cheery attitude. Many things are going to happen through the lifecycle of the company, both bad and the good, 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 status. You need to make sure you have the ability to stay afloat and have a means of financing when getting started. And reputation is also an obstacle because you don’t have a reputation or customers. If you don’t start out with several customers, most of the time you are getting started very alone.
WHAT YOU NEED?
VIABLE PRODUCT
You need to provide a product/service that people need it. Researching similar products/services is important 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 have the ability to bring experience to the desk. It’s the experience you have that may make the company. Typically, you intend to have a niche to help you have a focused approach and decide what sort of company you need it to be. Lastly, you need to consider when you can sell enough of your product or service to make a living. Are you considering able to cover all of the expenses and salaries that come with a business?
BUSINESS PLAN
A business plan is absolutely essential. What is a business plan?
Start with an executive summary, that 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 in detail. Then, comes the market analysis, who is likely to be your customer and who is your competition? Next, is organization management. Who’s going to manage the business enterprise? Will you manage it yourself or will you hire someone from the outside to handle your business? More often than not you are starting managing the business enterprise yourself. Next, you need a sales strategy, what sort of sales strategy will you encompass? And lastly, you have to include funding requirements and economic projections. Which kind of funding do you need to 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 many business plan templates open to help. Even if you are an established business, its not necessary anything complicated. Yet another resource is a easy roadmap. This breaks out calendar month by month projections for 2 2 years. What industry events will you attend? How many people will you hire? Which kind of marketing campaigns will you run?
Last, goals are extremely important. It is advisable to 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 issues to ask are how much money will you need to remain afloat? Will you be taking a salary? Exactly what will your non-salary expenses be? Just how many people do you plan on hiring the first year? What about company benefits? Even though you are by yourself, you will require benefits and insurance. They are all questions it is advisable to think about.
Should you self-finance or take out a loan? Self-financing is often recommended should you have enough money in the bank to float the business and your salary for a year or two. This option reduces the pressure. The last thing you want is pressure from creditors. Loans will be difficult to procure. If you manage to get a loan, you will need 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 put your own spin on it!
A fourth option is really a funding company. This is usually a viable option because they will most likely carry out your payroll and invoicing for you personally. Sometimes the funding company will provide a basic ATS system as well that could help you start. The downside to a funding company is often it really is hard to breakaway. You must pay back loans with interest and occasionally it is not financially feasible to breakaway. If you use a funding company, you want to be sure to understand the agreement and know what it takes to step away from the funding company.