Top 5 Things to Remember When Starting a Business
Starting your own business, especially when the job market is tight and you find yourself unemployed or under employed, can seem like a great idea. For many people each year, it is. Before you start racing down the path of entrepreneurship, here are a few things to keep in mind.
1. Do You Have A Business Plan?
A detailed business plan is crucial. It will help create a blueprint for you to follow as you get the business started, and it may help you obtain financing for your business idea down the road. One of the most important reasons to start with a business plan is it can often give you quick insight into whether your idea is even profitable. In order to write a proper business plan, it will be important to know the market you plan on entering.
2. Do You Understand the Market?
Analyze your business concept to ensure it’s feasible and that there is a need for your product or service in the audience you will be targeting. If you are currently working in the industry you intend to enter, analyze closely the competitive strengths and weaknesses of the company you work for, this will often reveal flaws that can be fixed within your own plan or positives that can be used in future strategy building. Research the competition and distinguish what will separate your brand from theirs; this can give you the decisive edge when entering the market.
You don’t have a business if there’s no market for the product or services you offer. Market research and statistics will create a strong foundation for any business, as well as help confirm if you have a good chance of having a profitable venture.
3. Do You Know How You Will Fund Your New Business Startup?
Many small business owners started their first business while maintaining their day job. If you can use money from your current employment to get your idea launched until you have proof of concept of a profitable enterprise, you can avoid the headaches that can come with trying to find startup loans or investors. It is important to note that you should always make sure that you do not have a non-compete in place at your employer that prohibits moonlighting or working in the same industry as that can create unnecessary legal hurdles in the future.
To acquire any startup loans you will need a strong business plan in place to convince the institutions that you are a worthwhile investment. Requesting loans can be daunting to begin with, but having a well-prepared business model will give you an advantage when attempting to secure financing.
4. Do You Have A Support Team?
Some business ideas are very simple and can be launched using off the rack software for accounting and taxes. Often, especially if you know that your business will require employees outside of yourself, you will want to make sure that you have a support team in place to handle the areas that are not your expertise. The most common areas that can trip up a new business owner are legal compliance, bookkeeping, taxes, and insurance requirements. Being proactive by having an attorney on retainer, an accountant or bookkeeper, and a trusted insurance agent can ease many future concerns.
5. How Will Your Business Be Structured?
Now that you have done your due diligence in research it’s time to think of business structure.
Whether you buy a franchise, an established business or start your own, creating structure is the backbone of every company. The type of business will often determine the structure you want to use for your company, so look around at how competitors are structured, as that can be an easy guide. The most common structures include the following four categories:
- Sole Proprietorship – the business is owned and run by a single person who is responsible for business debts
- Partnership – a cooperation between two parties running a business together
- Corporation – members are not personally responsible for business debts, requires formal record keeping, and allows for money to be raised from outside investors
- Limited Liability Corporation (LLC) – in most cases the personal assets of the principles are protected from being attacked if the business cannot pay its debts
Your due diligence will point you in the direction of the structure you will want for your business. This decision will also allow you to plan your tax strategy.
Your Next Steps As A Startup Business Owner
Starting a business can be the realization of a dream for many people, but it’s not a decision that should be entered into lightly. Doing the proper research and making sure that you have through various scenarios is just one of the steps you’ll need to take in launching a new venture. You will also need to ensure that you have contingency plans in place should anything unexpected happen. Having a plan can help the startup process more enjoyable. Another plan you should consider having is a funding plan. This is where AmONE can help.
AmONE knows that starting and sustaining a new business can be tough, especially in today’s economy. Our free service was created to match you to the highly rated startup loan solutions in the market. To learn more, fill out our simple startup business loan form or call us toll-free at 888-401-0330. We have available live help – our knowledgeable financial search specialists – to support you through the process of obtaining the ideal startup business loan for your situation. Our offices are open Monday through Friday from 9:00 AM to 9:00 PM and on Saturday from 9:00 AM to 5:30 PM Eastern time.
