There is a lot to think about and plan when you want to start a business. Likely, you’ve already come up with an idea and what you want to call your business and those are two of the first steps in getting started, but what next?
This article offers a quick list of things to be mindful of when you’re first starting out in the world of commercial enterprise.
#1 – Write Up a Business Plan
Everyone should write up a business plan. It doesn’t have to be a work of art and you don’t have to be a great writer to create one. If the business plan is purely for your own benefit and not one designed to attract investors, then how well it’s written really doesn’t matter, so long as you understand it.
As you create a plan, you’ll learn more about your business, your goals and objectives and loads of other important stuff that needs to be thought about and addressed. To get you started, download a free business plan template online.
#2 – What Obstacles Could the Start-Up Face?
All businesses are going to face obstacles, hazards and problems. It’s just part of the deal. You will want to list these in your business plan and any ideas you have to prevent problems from occurring, if possible.
Risk management is a vital part of any business and it’s something you should really focus on; at the beginning and for the entire lifespan of your business. Something else to consider are risk management software solutions, programs that will help you with your risk management requirements and strategies.
#3 – Take Time To Work Out Your Finances
Money is the one thing that can either make or break your business. After all, doing business is ultimately about generating profits.
Several mistakes start-ups make are either not having enough start-up capital to get going and see the business venture through to a stage where it’s profitable, or simply over-spending that start-up capital and finding yourself unnecessarily short on funds because of it.
Try and factor in every possible expense you can think of and then determine if you have enough money yet to pull the trigger on your business idea.
#4 – Will You Need To Hire Someone?
If you don’t have any business partners, will you be able to get things rolling on your own, or will you need to hire an employee right off the bat? If you do need to, that will be another expense you will have to factor in but an employee in this instance is going to prove to be a major asset for the business and getting it up and running.
#5 – Location, Location, Location
Unless it’s a business you can run from home, you will need a premises somewhere. If your business relies on customers and foot traffic, then location is going to be of paramount importance. This isn’t an area of your planning and preparation that you will want to rush, as it will likely prove critical in the success of your business.
Competition in the area is another consideration. If you’re planning to open a tourist T-shirt shop, for example, are there similar shops in the area and, if so, do you believe there is enough of a market there to accommodate another similar store?
Keep in mind that popular areas are likely to attract higher rent prices for commercial leases, something you will need to factor into your budget.
#6 – Advertising and Marketing
Advertising and marketing are also vital components to success, both when you first get up and running and for ongoing profitability and visibility. If you run a store and it’s in a good location, you probably won’t need to market as heavily as some other forms of business that don’t rely on walk-in traffic.
For example, an accounting business will require more advertising and marketing than the tourist T-shirt shop idea will in most cases.
This article has highlighted six things to be mindful of when starting a business and it’s enough to get you thinking about what you need to do and what you are setting out to achieve.