When thinking about starting a small business you want to think about “Why are you starting the business enterprise?” Often times someone decides to start a small business with the mindset they will have more free time, home based, and have a flexible schedule. Unfortunately, it is important to avoid these myths. Most the time, starting a business isn’t any of these things. Instead, it is long hours, working at home can be a distraction, less flexibility, and there are many hats to juggle. It’s completely different then working for an organization and it is important to keep all of this in mind when deciding if starting a business is right for you. If it’s, then let’s dive into getting started off with your business idea!
Attitude is EVERYTHING. You need to continue to keep a cheery attitude. A lot of things are going to happen during the lifecycle of the company, both good and bad, and the most important thing is to keep a positive attitude.
BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles startups face whenever starting a business is money and reputation. It is advisable to make sure you have the ability 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. Unless you start out with several customers, usually you are starting out very alone.
WHAT YOU NEED?
VIABLE PRODUCT
You need to provide a product/service that people want to buy. Researching similar products/services is important to see what else exists that is similar to your idea and then regulate how your product will be better than the competition. It is also important to manage to bring experience to the table. It’s the experience you have that may make the company. Typically, you wish to have a niche in order to have a focused approach and decide which kind of company you need it to be. Lastly, it is advisable 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 come with a business?
BUSINESS PLAN
A business plan is absolutely essential. Exactly what is a business plan?
Focus on an executive summary, which 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 enterprise in detail. Then, comes the marketplace analysis, who is likely to be your customer and who’s your competition? Next, is organization management. Who’s going to manage the business enterprise? Will you manage it yourself or will you hire someone from the outside to handle your business? Quite often you are starting off managing the business yourself. Next, you need a sales strategy, which kind of sales strategy will you encompass? And lastly, you should include funding requirements and economic projections. What sort 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 information on paper.
There are various business plan templates available to help. Even though you are an established business, its not necessary anything complicated. An additional resource is a easy roadmap. This breaks out 30 days by month projections for 2 2 years. What industry events 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 organization plan so you know where you are heading.
MEANS OF FINANCING
How will you finance your organization? Some of the key concerns to ask are how much money will you need to stay afloat? Will you be going for a salary? What will your non-salary expenses be? Just how many people do you anticipate hiring the first year? Think about company benefits? Even though you are by yourself, you will need benefits and insurance. These are all questions you need to think about.
Should brand video production -finance or take out a loan? Self-financing is often recommended for those who have enough money in the bank to float the business and your salary for a year or two. This program reduces the pressure. The final thing you want is pressure from creditors. Loans are going to be difficult to procure. If you manage to get a loan, you will need to personal guarantee and you may need collateral.
There is also the chance for a financial business lover, however, a financial business partner can often result in meddling and pressure. In addition, it may cause you to run the business differently then you envisioned. Remember, you’re starting the business to put your own spin on it!
A fourth option is a funding company. This is the viable option because they will often do your payroll and invoicing for you personally. Sometimes the funding company will provide a basic ATS system as well that could help you start off. The downside to a financing company is often it really is hard to breakaway. It is advisable to pay back loans with interest and oftentimes it is not financially feasible to breakaway. If you use a funding company, you intend to make sure you understand the agreement and know very well what it takes to step from the funding company.