When thinking about starting a business you want to consider “Why are you starting the business?” Often times someone decides to start a small business with the mindset they will have more free time, home based, and also have a flexible schedule. Unfortunately, it is very important 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 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 off with your business idea!
Attitude is EVERYTHING. You should always keep a cheery attitude. A lot of things are going to happen during 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
Both biggest obstacles startups face when starting a business is money and status. You need to make sure you are able to stay afloat and have a means of financing when getting started. And reputation can be an obstacle because you don’t possess a reputation or customers. If you don’t start out with a group of customers, more often than not you are starting out very alone.
WHAT YOU NEED?
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 better than the competition. It is also 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 so that you can have a focused approach and decide what sort of company you need it to be. Lastly, you should consider when 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 completely essential. Exactly 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 explanation that lays out the business in detail. Then, comes the marketplace analysis, who is likely to be your customer and who is your competition? 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 yourself. managed it services providers Next, you will need a sales strategy, which kind of sales strategy will you encompass? And lastly, you have to include funding requirements and financial projections. What kind of funding do you need to start the business and just how much do you project to make?
A written plan is critical. It really is absolutely essential you write down the above info on paper.
There are plenty of business plan templates open to help. Even if you are an established business, you do not need anything complicated. Yet another resource is a very simple roadmap. This breaks out 30 days 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 organization plan so you know where you are heading.
MEANS OF FINANCING
How will you finance your business? Some of the key concerns 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? Just 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 must think about.
Should you self-finance or remove a loan? Self-financing is often recommended if you have enough money in the lender to float the business and your salary for per year or two. This option reduces the pressure. The last thing you need is pressure from creditors. Loans are going to be difficult to procure. If you manage to get yourself a loan, you will have to personal guarantee and you will need collateral.
There is also the possibility for a financial business lover, however, a financial business partner can often lead to meddling and pressure. It also may cause you to run the business differently then you envisioned. Remember, you are starting the business to place your own spin on it!
A fourth option is a funding company. That is a viable option because they will often perform your payroll and invoicing for you. Sometimes the funding company will provide a basic ATS system as well that could help you start. The downside to a financing company is often it is hard to breakaway. You have to pay back loans with interest and in some cases it isn’t financially feasible to breakaway. If you are using a funding company, you intend to be sure you understand the agreement and know very well what it takes to step away from the funding company.