Starting a new business is not an easy endeavor, it takes careful planning, time and sufficient funds, and even if you have all that, there is no real guarantee that you will be able to succeed. However, this doesn’t mean you shouldn’t try. As in every new endeavour there are several important steps that need to be taken in order to ensure that you have done everything you can to help your business get off the ground and to protect it from possible beginner’s mishaps. And this article is here to provide you with all the necessary information that is pertinent for your pending venture into the world of entrepreneurs. So let’s get to work!
Do you have a clear and detailed business plan
Simply having a product or a service is not enough. Before venturing into the treacherous business waters it is essential to take the time and create a clear business plan. Start by defining the values and goals of your future company, these will be the main pillars for building your brand later on. Next, make a cost estimate, so that you can see whether or not you can finance your endeavour and what is the ballpark sum you will need. Finally calculate the logistic of it all and whether or not it can be sustainable for the first year or so. This first business plan is going to serve as a guide for further business development. But remember, it is not set in stone, you can modify it and adjust some of the parameters as your business starts developing and growing.
Consider the safest ways of funding you venture
Funding is one of the main concerns for young entrepreneurs, and it can often be the main reason why they tend to give up before even trying. However, if you have stated clear initial cost prediction in your business plan, it is a lot easier to start contemplating the sources of funding. You can always opt for a business loan from your local bank. Another great option is crowdfunding of finding an angel investor, this is not an easy task but is quite doable, you just need to have a well-developed business plan – check out the first paragraf again – that you can present to possible investors. Finally, you can opt to borrow money from family and friends, which should be your last resort as relationships can be tested and strained when you add finances in the mix.
Don’t forget to create a safety net
Most young entrepreneurs who are just starting off dismiss the idea of getting insurance as something that is only going to cost them the money they don’t currently have an abundance of. But what they don’t understand is that by opting to get insurance you are essentially protecting yourself and your business from a lot of financial woes later on. For example, a professional liability insurance will protect you and your business from negligence claims due to harm that results from mistakes or failure to perform. This is important because you are just starting off and mistakes are bound to happen and this way you won’t be in danger of losing your entire business over it. Next, is property insurance, so that if something goes wrong you can get your inventory restocked. Don’t forget to invest in quality car insurance, especially if you rely on your vehicle to get your business done. In that case you cannot afford to overlook this type of safety net.
Finally, get down to the logistics of the whole thing
Supply and demand, it is that simple. You need to be ready for your business to succeed as much as you are for it to fail. You are bound to experience growth spurts and it is important to have a mechanism in place that can support that. So if you’re in the business of supplying a certain type of product you need to make sure you don’t run out after the first couple of weeks, that could significantly damage your customer relations. On the other hand, if you are in the service providing business, make sure you have enough workers to cope with all the customer demands. As a small business just starting off you cannot afford to turn back potential customers due to insufficient workforce. You don’t need to invest in this right away but is is essential that you follow the developments and slowly supplement your business with everything it needs to continue thriving.
These are the essential, and you should go through the steps carefully in order to ensure that you have covered all the basis. And, just one other thing, don’t expect to sleep or go on vacation any time soon, those are just some of the not so beloved perks of starting a new business. Good Luck!
Author: Oliver Curtis
Hi there. I’m Oliver. I’m just a young boy from the outskirts of… Okay, that’s a lie, I’m not a young boy anymore, although I certainly feel that way at heart.