When thinking about starting a small 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 also 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 extended hours, working at home might be a distraction, less flexibility, and there are many hats to juggle. It’s completely different then working for an organization and it is vital that you keep all of this in mind 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. It is advisable to always keep a cheery attitude. Many things are going to happen during the lifecycle of the business, both bad and the good, and it is important is to keep a confident attitude.
BIGGEST OBSTACLES TO OVERCOME
Both biggest obstacles startups face when starting a business is money and popularity. You have to make sure you will be 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, quite often you are getting started very alone.
WHAT YOU NEED?
VIABLE PRODUCT
You need to give 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. It is also important to have the ability to bring experience to the table. It is the experience you have that may make the company. Typically, you would like to have a niche so that you can take a focused approach and decide which kind of company you need it to be. Lastly, you have 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 include 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 can do. Next, you need a business information that lays out the business in detail. Then, comes the marketplace analysis, who is likely to be your customer and who’s your rivals? Next, is organization management. Who is going to manage the business? 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 are you going to encompass? And lastly, you have to include funding requirements and fiscal projections. What sort of funding do you need to 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 information on paper.
There are many business plan templates available to help. Even though you are an established business, you don’t need anything complicated. An additional resource is a straightforward 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 type of marketing campaigns will you 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 business? 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? Just how many people do you anticipate hiring the first year? What about company benefits? Even if you are by yourself, you will require benefits and insurance. These are all questions you need to think about.
Should you self-finance or remove a loan? Self-financing is frequently recommended if 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 final thing you need is pressure from creditors. Loans will be difficult to procure. If you manage to get yourself a loan, you will need to personal guarantee and you may need collateral.
There is also the possibility for a financial business lover, however, a financial business mate can often result in meddling and pressure. In addition, it may cause you to run the business differently you then envisioned. Remember, you are starting the business to place your own spin onto it!
A fourth option is a funding company. This can be a viable option because they will often carry out your payroll and invoicing for you. 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 is hard to breakaway. It is advisable to pay back loans with interest and sometimes it is not financially feasible to breakaway. If you are using a funding company, you wish to be sure you understand the agreement and know what it takes to step from the funding company .