Starting a business can be stressful. It often feels like there are 1,000 things to get done all at the same time. There’s no avoiding this reality for new small business owners, but with a little planning, it’s possible to manage expectations and take actions with a sense of purpose toward building your business.
In the end, you have to trust the process and put everything into it.Starting a business can be a motivating idea especially for first time entrepreneurs or employed individuals who are tired of the 8am-5pm job. It’s encouraging to start a business when you think about the freedom of not working 8-9 hours a day in a confined office, not having to report to a boss, and the possibility of endless profit.
Is your great idea good enough? Can it grow in this slow economy? Can it become profitable, and return on any investments it requires? Well, there’s no way to know until you try, right? Hardly. There are some ways to prepare yourself, test your idea, and improve it before you actually found a company around it. We’ve compiled the best examples of tips for the very early steps of building a business.
1. Get Clear About Your WHY?
Why are you starting this business? How do you envision your life now as a business owner? Have you looked into starting a business just because you hate your job or because you want to be the next tech star to cash out for big bucks?
If you are starting a business because you have a purpose you want to serve, want to leave a legacy, or fill an unmet need in the marketplace, then these are the reasons that will help you survive the hard days in business. Develop a vision board for your new dream life as a business owner. It will keep you focused on why you are working so hard.
2. Do your research.
You want to make sure you understand the industry you’ll be involved in so you can dominate. No matter how unique you might think your business idea is, you should be aware of competitors , check the markets.
Just because you have a brilliant idea does not mean other people haven’t also had the same idea .If you can’t offer something better and/or cheaper than your competitors, you might want to rethink starting a business in that area.
You should also consider your target demographic, which will be the driving force in each decision you make. You can’t earn a profit without your consumers, so make them your priority.
You can Read these books to Get more Knowledge about starting the Business.
3. Take care of the legal aspects.
How a company is incorporated is important, and not always an easy thing to change after the fact. While not overly complex to understand, each type of legal entity comes with certain requirements and restrictions. Certain types of corporations may not be available or appropriate for your type of business. If you need help, a corporate attorney or experienced business accountant can offer timely and accurate advice on the exact legal structure of your proposed company.
Starting a business requires money that you likely won’t have right away, which is why it’s encouraged to seek capital.Capital is the amount or value you need to put in the business to get it started and operating. It can be cash or non-cash. To know how much capital you need, list down all the possible spending you need to make to start and operate, such as assets to purchase, renovation, lease payments, operating expenses etc.
No matter how you propose to finance and fund your business, share that information in your business plan. There are a myriad of investors out there and they’ve seen it all. Don’t assume no one will invest just because you aren’t also bringing some capital to the table. Investors typically want to know three things:
- How much?
- For how long?
- What is the exit strategy?
Answer these three things to an investor’s satisfaction and you’re very likely to strike a deal.
Read also : 4 Ways to Stay Motivated and Grow Your Business
4. Understand the risk.
Of course, there will always be a level of risk with a new business venture. Calculating, understanding and planning for risk is an important step to take before you start working on your business. This means assessing your industry’s risks before moving forward with a business plan.
5. Learn to manage debt better or stay out of it
Some entrepreneurs use debt to start a business, this can be very dangerous especially if you are a first time entrepreneur. A start-up is inherently very risky, especially if the business model is untested.
If the business fails, the business owner still needs to pay back debt because most debts are personally guaranteed by the business owner.
Some entrepreneurs use home loans, and personal loans to start a business because interest rates on these type of loans are low. However, be very careful, less optimistic, and make sure your debt is within manageable limits.
6. Find a good mentor
Having a good mentor is like parental guidance. You want someone to hold you accountable for your actions, and provide guidance through your journey.
But choose your mentor wisely. It should ideally be someone who has a strong track record of success in business, believes in your idea, and is willing to give you honest feedback without worrying about protecting your feelings.
7. Review everything.
Last but not least, go through it all one more time. Not only is this an excellent way to fully familiarize yourself with your proposed new company, it’s a great way to identify in omissions or areas that need to be modified. A second set of eyes is always preferable.
Investing heavily in the planning phase of your new business will pay real dividends when the time comes to meet with investors, securing a location, and opening your doors for business. Dig in deep, make a great impression with your level of preparation, and start your business off on the right foot.
Starting a business can be very exciting. But it’s important to do your homework, and take measured, meticulous steps. Start small and take incremental steps one day at a time.