When thinking about starting a small business you want to think about “Why are you starting the business?” Quite often someone decides to start a business with the mindset they will have more free time, home based, and also have a flexible schedule. Unfortunately, it is important to avoid these myths. Majority of the time, starting a business isn’t any of these things. Instead, it is extended hours, working at home can be a distraction, less flexibility, and there are lots of hats to juggle. It’s very different then working for an organization and it is important to keep all of this at heart when deciding if starting a small business is right for you. If it’s, then let’s dive into getting started off with your business idea!

Attitude is EVERYTHING. You should always keep a cheery attitude. Many things are going to happen during the lifecycle of the company, both bad and the good, and what is important is to keep a confident attitude.

BIGGEST OBSTACLES TO OVERCOME

Both biggest obstacles startups face whenever starting a business is money and standing. You must make sure you are able to stay afloat and have a means of financing when starting out. And reputation is also an obstacle because you don’t have a reputation or customers. If you don’t start out with several customers, quite often you are starting out very alone.

WHAT YOU NEED?

VIABLE PRODUCT

You need to provide a product/service that people need it. Researching similar products/services is essential to see what else is out there that is similar to your idea and then determine how your product will be much better than the competition. It is also important to manage to bring experience to the table. It’s the experience you have that may make the company. Typically, you want to have a niche to help you have a focused approach and decide what type of company you need it to be. Lastly, you have to consider if you can sell enough of your service or product to make a living. Will you be able to cover all of the expenses and salaries that come with a business?

BUSINESS PLAN

A business plan is absolutely essential. What is a business plan?

Focus on an executive summary, which is a high-level description of what the business enterprise is going to do. Next, artdirectors will need a business description that lays out the business in detail. Then, comes the marketplace analysis, who is likely to be your customer and who is your competition? Next, is organization management. Who’s going to manage the business? Will you manage it yourself or will you hire someone from the exterior to handle your business? Usually you are starting managing the business enterprise yourself. Next, you need a sales strategy, what type of sales strategy will you encompass? And lastly, you need to include funding requirements and monetary projections. What kind of funding should you start the business and how much do you project to make?

A written plan is critical. It really is absolutely essential you write down the above info on paper.

There are plenty of business plan templates available to help. Even though you are an established business, you do not need anything complicated. Yet another resource is a easy roadmap. This breaks out month by month projections for 2 2 years. What industry events will you attend? How many people will you hire? What type of marketing campaigns do you want to run?

Last, goals are really important. You must set specific goals in your business plan so you know what your location is heading.

MEANS OF FINANCING

How will you finance your business? Some of the key problems to ask are how much cash will you need to remain afloat? Will you be going for a salary? What will your non-salary expenses be? Just how many people do you plan on hiring the first year? What about company benefits? Even if you are by yourself, you will require benefits and insurance. These are all questions you have to think about.

Should you self-finance or remove a loan? Self-financing is often recommended when you have enough money in the lender to float the business as well as your salary for per year or two. This option reduces the pressure. The final thing you want is pressure from creditors. Loan products will be difficult to procure. In the event that you manage to get yourself a loan, you will have to personal guarantee and you will need collateral.

There is also the possibility for a financial business companion, however, a financial business partner can often result in meddling and pressure. It also may cause one to run the business differently you then envisioned. Remember, you’re starting the business to place your own spin onto it!

A fourth option is a funding company. This is a viable option because they will often perform your payroll and invoicing for you personally. Sometimes the funding company will provide a basic ATS system as well that could help you start. The downside to a funding company is often it really is hard to breakaway. You must pay back loans with interest and often it isn’t financially feasible to breakaway. If you use a funding company, you need to be sure you understand the agreement and know what it takes to step from the funding company.