When thinking about starting a business you want to think about “Why are you starting the business?” Often times someone decides to start a business with the mindset they will have more free time, work at home, and have a flexible schedule. Unfortunately, it is important to avoid these myths. Majority of 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 lots of hats to juggle. It’s very different then working for an organization and it is important to keep all of this at heart when deciding if starting a business is right for you . If it’s, then let’s dive into getting started 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 bad and the good, and the most important thing is to keep a confident attitude.
BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles startups face when starting a business is money and status. You must make sure you are able to stay afloat and have a way of financing when starting out. And reputation can be an obstacle because you don’t have a reputation or customers. If you don’t start out with a group of customers, quite often you are starting out very alone.
WHAT YOU NEED?
VIABLE PRODUCT
You need to give a product/service that people want to buy. Researching similar products/services is important to see what else is out there that is much like your idea and then regulate how your product will be better than the competition. Additionally it is important to manage to bring experience to the desk. It is the experience you have that will make the company. Typically, you need to have a niche so that you can have a focused approach and decide what sort of company you want it to be. Lastly, you need to consider if you can sell enough of your product or service to make a living. Will you be able to cover each of the expenses and salaries that come with a business?
BUSINESS PLAN
A business plan is completely essential. What is a business plan?
Focus on an executive summary, that is a high-level description of what the business is going to do. Next, you will need a business explanation that lays out the business in detail. Then, comes the market analysis, who is likely to be your customer and who’s your competition? Next, is organization management. Who’s going to manage the business? Will you manage it yourself or will you hire someone from the exterior to handle your business? Most of the time 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, you have to include funding requirements and economical projections. Which kind of funding should you start the business and just how much do you project to create?
A written plan is critical. It really 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 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 type of marketing campaigns do you want to run?
Last, goals are extremely 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 problems to ask are how much money will you need to stay afloat? Will you be taking a salary? Exactly what will your non-salary expenses be? How many people do you plan on hiring the first year? What about company benefits? Even if you are by yourself, you will need benefits and insurance. They are all questions you should think about.
Should you self-finance or remove a loan? Self-financing is frequently recommended assuming you have enough money in the lender to float the business and your salary for per year or two. This program reduces the pressure. The final thing you want is pressure from creditors. Loan products will be difficult to procure. In the event that you manage to get yourself a loan, you will have to personal guarantee and you will need collateral.
There is also the chance for a financial business spouse, however, a financial business lover can often result in meddling and pressure. In addition, it may cause one to run the business differently then you envisioned. Remember, you’re starting the business to place your own spin on it!
A fourth option is a funding company. This is a viable option because they will most likely carry out your payroll and invoicing for you. Sometimes the funding company provides a basic ATS system aswell that could help you start. The downside to a financing company is often it is hard to breakaway. You should pay back loans with interest and often it is not financially feasible to breakaway. If you use a funding company, you intend to ensure you understand the agreement and know what it takes to step away from the funding company.