When thinking about starting a 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 have more free time, home based, and also have a flexible schedule. Unfortunately, it is very important avoid these myths. Majority of the time, starting a business isn’t any of these things. Instead, it is extended hours, working at home may be a distraction, less flexibility, and there are many hats to juggle. It’s very different then working for a company and it is vital that you keep all of this in mind 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 should always keep a cheery attitude. Many things are going to happen during the lifecycle of the company, both good and bad, and what is important is to keep a confident attitude.
BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles startups face whenever starting a business is money and status. You must 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, usually you are starting out very alone.
WHAT YOU NEED?
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 green then regulate how your product will be better than the competition. Additionally it is important to have the ability to bring experience to the table. It is the experience you have that will make the company. Typically, you need to have a niche to help you have a focused approach and decide what sort of company you need it to be. Lastly, you should consider if you can sell enough of your product or service to make a living. Will you be able to cover all of the expenses and salaries that include a business?
A business plan is absolutely essential. Exactly what is a business plan?
Start with an executive summary, which is a high-level description of what the business enterprise can 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 is your competition? Next, is organization management. Who is going to manage the business enterprise? Are you going to manage it yourself or will you hire someone from the outside to handle your business? Most of the time you are starting off managing the business enterprise yourself. Next, you will need a sales strategy, which kind of sales strategy will you encompass? And lastly, you must include funding requirements and fiscal projections. What sort of funding do you need to start the business and how much do you project to make?
A written plan is critical. It is absolutely essential you write down the above home elevators paper.
There are many business plan templates open to help. Even if you are an established business, you don’t need anything complicated. An additional resource is a easy roadmap. This breaks out month by month projections for just two 2 years. What industry events will you attend? How many people will you hire? What sort of marketing campaigns do you want to run?
Last, goals are extremely 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 organization? Some of the key questions 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? Think about company benefits? Even though you are by yourself, you will require benefits and insurance. They are all questions you need to think about.
Should you self-finance or take out a loan? Self-financing is frequently recommended in case you have enough money in the bank to float the business as well as your salary for a year or two. This option reduces the pressure. . The last thing you need is pressure from creditors. Loan products will be difficult to procure. In the event that you manage to get a loan, you will have to personal guarantee and you may need collateral.
There is also the possibility for a financial business partner, however, a financial business lover can often result in meddling and pressure. It also may cause you to run the business differently you then envisioned. Remember, you are starting the business to place your own spin on it!
A fourth option is a funding company. This is usually a viable option because they will often perform 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 funding company is often it is hard to breakaway. You must pay back loans with interest and oftentimes it is not financially feasible to breakaway. If you use a funding company, you would like to ensure you understand the agreement and know very well what it takes to step away from the funding company.