What are some things to consider before you start a small business?
Having an idea for a new business venture is only the first step towards actually starting a business. Taking your idea and turning it into a successful money-making business is a difficult process and one that you must make sure you’re really prepared for. Before taking the plunge, consider these questions.
How Committed Are You, Really?
In order for your business to be successful, you need to fully commit to your venture. You will likely be putting in long hours without bringing in much revenue at first. Being an entrepreneur also comes without many of the safety nets that salaried workers have at large corporations, like paid sick days, benefits, pension plans or even holidays.
If you’re willing to sacrifice because you know your idea could really be a success, then you can start planning your business.
Do You Have The Right Knowledge?
No matter how driven or determined you are, you still need to have the knowledge and skills to take your business idea to the next level. You need to be able to research and create a business plan. While creating a plan, you should assess your skills and see what you may need to outsource.
For example, if you have an idea for an app but don’t know how to code, you may want to hire a developer. Alternatively, if you can code brilliantly but aren’t great with a sales pitch, you might want to hire someone with skills in sales or marketing.
Do You Have the Money?
It takes money to make money! In order to make your business a success, you’ll need to have enough funding to cover things like development, product prototypes, paying for staff (including yourself!) and marketing. There are lots of ways to get money for your business, from your own savings to getting funding or seed money from investors.
How much money will you need to kick off your business?
Do You Have the Right Support?
While you may be going into business as a soloprenuer, you still need a support system to make things happen. Many successful entrepreneurs have worked with business coaches to help guide them through the process of launching a company. If you’re not interested in hiring a coach, you can look through your network for a mentor. Being able to talk to someone who has achieved what you’re working towards can help you clarify your goals and learn what steps you should — or shouldn’t — be taking.
Support doesn’t just come in the form of people. You should also make sure you have the right tools in place to support your business goals and needs. For example, if you’re working with a lot of vendors, you might want to have a functional and reliable accounting software to help you keep track of where your money is coming from, and going. Or, if your business is dealing with lots of sensitive information, you may want to look at online fax companies, which are more secure than emailing documents.
Do You Have A Business Plan?
Creating a business plan is a lot more than just writing out the idea for your business. It’s important to research your idea and create a serious, concrete plan for yourself. You should include a summary of your idea, research into your target market, including who your ideal customer is and how you can reach them, your financial plan and your operating plan. Through writing out your business plan, you can start to see how your business will actually work and what you still need to refine or where you can find a new solution.
