When thinking about starting a business you want to consider “Why are you starting the business enterprise?” Often times someone decides to start a business with the mindset they have more free time, work at home, and also have a flexible schedule. Unfortunately, you should avoid these myths. Most the time, starting a small business isn’t any of these things. Instead, it is long hours, working at home can be a distraction, less flexibility, and there are many hats to juggle. It’s very different then working for an organization and it is important to keep all of this in mind when deciding if starting a small business is right for you. If it is, then let’s dive into getting started off 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 good and bad, and what is important is to keep a confident attitude.
BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles startups face when starting a business is money and reputation. You have to make sure you will be able to stay afloat and have a way 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 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 regulate how your product will be much better than the competition. Additionally it is important to be able to bring experience to the desk. It is the experience you have that will make the company. Typically, you would like to have a niche so you can take a focused approach and decide which kind of company you need it to be. Lastly, you have to consider if you can sell enough of your product or service to make a living. Are you considering able to cover each of the expenses and salaries that come with 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 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 rivals? 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 exterior to handle your business? Quite often you are starting managing the business enterprise yourself. Next, you need a sales strategy, which kind of sales strategy are you going to encompass? And lastly, you have to include funding requirements and monetary projections. What kind of funding do you need to start the business and how much do you project to create?
A written plan is critical. It really is absolutely essential you write down the above info on paper.
There are various business plan templates available to help. Even if you are an established business, its not necessary anything complicated. Yet another resource is a very simple roadmap. This breaks out 30 days by month projections for 2 2 years. What trade shows will you attend? Just how many people will you hire? What sort of marketing campaigns do you want to run?
Last, goals are really important. You have to 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 issues to ask are how much money will you need to remain afloat? game Will you be going for a salary? Exactly what will your non-salary expenses be? How many people do you anticipate 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 frequently recommended for those who have enough money in the lender to float the business as well as your salary for a year or two. This program reduces the pressure. The last thing you need is pressure from creditors. Loan products will 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 possibility for a financial business lover, however, a financial business companion can often result in meddling and pressure. In addition, it 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 a funding company. This can be a viable option because they will often do your payroll and invoicing for you personally. Sometimes the funding company provides a basic ATS system as well that could help you start off. The downside to a financing company is often it really is hard to breakaway. You have to pay off loans with interest and in some cases it is not financially feasible to breakaway. If you use a funding company, you wish to make sure you understand the agreement and know what it takes to step from the funding company.
