How Can You Start Your Business?

By Frank Coutinho | Jun 22, 2018
Photo by: Pexels What Do You Need To Keep In Mind When Starting a New Business?

There are approximately 28 million small businesses located in the United States of America according to the Small Business Administration. These businesses make up roughly 99.7% of all U.S. businesses. When you start considering some of the benefits of running your own business, such as being your own boss, determining your own work flow, working toward financial independence, and investing in yourself, it is not a surprise that small businesses are very popular. However, please do not forget that every small business is not a success. In fact, about two-thirds of small businesses with hired staff survive after two years, and then only roughly half survive after five years. There are challenges for business owners, especially if they are new and do not know what they are doing. In this article, we will discuss some of the various things you must consider when starting your own business.

 

Develop A Business Idea

You will require a business idea to effectively start a business. With this idea, you can develop a business goal, and a vision, and start adding purpose to your business. If you already have a business idea then you can continue onto the next step in our checklist. If you do not have an idea then it is vitally important that you stop and think about what you want to accomplish with your business. For example, you can think of fixing problems that annoy you personally or people you know, develop a faster or more cost-effective way to something already being done, or develop an innovation to a business process or procedure.

 

Complete Some Research

This is where you can start researching your potential rivals or partners within your market. For example, you can conduct interviews with customers or even just telephone calls. You can also hand out surveys or questionnaires or emails that can ask questions like “What factors would you consider when purchasing this product/service?” and “What are some areas you would suggest for improvement?” Do not make the mistake of just interviewing people you know.

 

Make a Financial Plan

Starting a small business does not require a lot of money, but it will require some initial capital to cover ongoing expenses before your business is turning a profit. You can simply do this by putting together a spreadsheet that estimates the start up costs for your business (licenses and permits, equipment, legal fees, insurance, branding, market research, inventory, trademarking, grand opening events, property leases, etc.), as well as the costs that you think you will need to keep your business running for at least 12 months (rent, utilities, marketing and advertising, production, supplies, travel expenses, employee salaries, your own salary, among any other). Of course, if you are running a little bit low of cash, you should consider small business lenders to help you make up the difference.

 

In conclusion, there are many things to keep in mind when running a business, especially if it is a new business. There are many things you must keep in mind such as developing a solid business idea, making a financial plan, and completing some market research to ensure your business idea is viable. All the best on your new business!

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