Starting a business can be both exciting and terrifying. It requires goal setting and lots of planning, and if you dedicate any less than 100% to succeeding, you probably won’t last long. However, many business owners have had to give up because they made simple mistakes.
I’ve seen plenty of businesses fold because the owner simply didn’t know what steps were required to make things work. Before you decide to open for business, consider these critical steps:
Get Your Finances in Order
It should go without saying that it costs money to start a business and keep it running, but the truth is, you’re probably going to need more than you think. That doesn’t mean you have to acquire all that money before starting a business, but it does mean that you need to have a plan in place.
Start by asking friends and family. Money can be a touchy subject for some, so consider how the person you ask might react before asking. If friends and family can’t or won’t provide enough capital to get started, you’ll need to come at it from a different angle—investors and venture capitalists might be able to make up the difference.
If you still don’t have enough, you’ll need to apply for a business loan. First, be sure your credit is in good shape before proceeding. If you have poor credit, you’ll only qualify for loans with high interest rates. Since you’ll be taking on debt to finance your business, and because you might not start to turn a profit for a while, you will most likely need to be able to finance your personal life from your savings.
Do Some Research
Two things will decide whether your business takes off—your customers and your competitors. First, the customers. You need to make sure that you can deliver what your target demographic wants, not what you want. These are the people allowing you to stay in business, so you need to keep them happy.
Next, the competition. You could have a brilliant idea for a business. It could be unique and in demand. The problem is that your competitors have had the same idea. When starting a business, you will need to work out how you will set yourself apart from the others, and if you can’t, you’ll have to consider opening in a different area.
Consider the Legal Aspects
Lastly, you’ll need to think of what legal structure your business will have. Nine times out of ten, a Limited Liability Company will cover the needs of a small business. The structure of your business determines taxes, legal liability, what paperwork you need to file, and whether you can hire employees.
This is the step that I’ve seen so many people fail to give due respect. Rather than hiring legal help to make sure that the proper process is followed, they try to set up their own legal entity. And what it ended up costing them is lots of time and money.
Are you thinking of starting a business?
Are you planning to start a business? Make sure you begin with the right foot forward. Contact us today for a no-obligation consultation. Se habla español. 305-858-4512