You Want A Business, Now What?
In a world full of uncertainties, it’s always a good idea to have a back-up plan. Starting a business can be daunting for young, aspiring, entrepreneurs. You must always learn to manage your expectations during the first few months or even years of starting your business but you need to remember that a business needs commitment and once properly planned and managed, can last and become profitable for years and years to come.
Here are a few tricks and tips on how to jump-start your small business today.
1. Understand The Risk
Your success is not assured. What are the pros and cons of pursuing this kind of business? What kind of risks is your planned business potentially going to fall into and what is your back-up plan in case it goes that way? There is a certain level of risk every time a new business venture begins. Calculate and plan ahead for every foreseeable risk and you will be thankful later that you did.
“Conversations about risk should happen upfront, It is important to understand your bank’s guidelines in these areas. Once banks start lending outside of a 3-to-1 debt-to-worth ratio, the loan request tends to get more scrutiny, as it appears to be riskier.” Tom Coletta, a commercial market executive for Axiom Bank, advises.
2. Map Your Finances
Money is the lifeblood of the industry. How much money are you willing to put in and where will you be sourcing your business capital? Do you need to take out a personal loan? Plan each and every cent and make sure that you stick to that amount with only a few extra for miscellaneous and unforeseen expenses.
“The first and most common place to seek capital is with friends and family. If that is not enough, expand the search to angel investors and venture capitalists. Should these options not provide the amount needed, then apply for business loans through banks and small business associations.” advises Mason Cole of Cole Sadkin LLC.
Now that you understand and know what you want from your industry and how you can go about achieving your goals, what else can you do to stand out? What skills are needed in your business? Are there other companies that offer the same services as you and what can you do to improve on that service?
Mark Zuckerberg wasn’t the first to create Social Media and Xerox was the first to create a graphics interface and mouse, but it was Steve Jobs who became well known because of it. Do research to innovate and refine ideas that came before you.
What is needed and essential? Most opportunities right now come from home-based works due to the pandemic. How can you generate a healthy income while staying at home and being your own boss? That is where timing comes in. It is a great idea to start your business when the economy is healthy, but there is a flow in decision making, and more and more businesses pop up each day.
Some of the most profitable income-earning businesses right now are meal-kits and food delivery services. People are staying at home in order to be safe from COVID so they tend to order their food online and prefer for it to be delivered right at their doorstep. Take this example and think of other things you can offer that are essential to people’s daily needs.
5. Understand The Legal Aspects
The first step that you need to take in starting your business is understanding it’s legal structure according to Business Attorney, Mason Cole. The legal structure of your company will determine how you pay taxes, what kind of paper works are needed, the liability of the owner or owners, and whether or not the company can have employees.
You will also need to acquire proper registration from the government to start your business. The company owner or owner will need to get an employer identification number and apply for various licenses in order to be able to hire workers and these licenses vary in different countries.
6. Hire Help
Starting a business is not and should not be an independent journey. A lot of things are required of you and in order to meet deadlines, you need help. It’s impossible for one person to handle every aspect of a company, this will put your finances at risk. A lot of people fail during the early stages because they do it solo and forget to do a lot of things. As for the legal council, it will help protect you in the long run.
You have the skill, you have the idea, and you have the capital needed. Now take action. If you don’t have the money yet, talk to friends and family or get another part-time job. A solid business plan will also help guide you along.
CEO of Transcription Outsourcing Ben Walker once said that his biggest advice to aspiring business owners is to always have a mentor or coach.
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