We can all have ideas for a business; some ideas will be good, and some ideas will not be. But even if you have a great idea, there is quite a large difference in having an idea that could work well, to actually putting it into practice and establishing a startup company that is successful. So if you want to get started in business, you need to think about having what it takes in order to be a successful entrepreneur. There are a lot of things to plan and think about, and shouldn’t be for the faint-hearted. After that, it is all about turning your idea into a startup company.
If you haven’t started a business before, then knowing where to start and what to do can feel a little intimidating. It won’t be something that is easy, as work and determination are involved, but if you are prepared to put in the hours, which could include some sleepless nights, you could set yourself up to succeed. It has been found that 71% of new businesses fail within ten years of opening, so you need to be taking steps to make sure that you don’t end up being just another statistic.
In theory, there are a number of things that you will need to do in order to have a successful business. However, they can be narrowed down to just a small number, in order to help you to get things off the ground.
Business Plan
Having an idea and having a business plan are two completely different things. In order to get a business off the ground, you need to be able to get finance, and one big factor in being able to get any kind of finance is to have a business plan. A plan will outline how the business will run, what the main aim is, costs, payments, and all other aspects of the potential future of your business. Put in simple terms, having a business plan is where you write a complete description of the future of your company. The plan should contain how you plan to do what you want to do, as well as what you want to do and when.
You don’t know where things will be in ten years, as global pandemics could arise, but having a plan for at least three years of the business is wise to have as a business strategy. Having a business plan needs to be one of the first things on your list of things to do, simply because it will help you with some of the remaining steps in the business setup.
Secure appropriate funding
All businesses will need some kind of capital in order to get things off the ground. Some business ideas won’t take much, and you might just need to afford a new computer and some up-to-date software. There is definitely not a magic number when it comes to knowing what funding you need for a startup, though being as frugal as you can be is a good idea. But what is the main way to get funding for a business, or is there one way that is best compared to others?
Like your business plan, the finding that is required will be different for each business. One aspect to think about is what you need and then if it would be possible to source this by yourself. The majority of small businesses are self-funded to start with, taking an individual’s savings and cash to get things up and running. It can be tight, but it can be a way to get things started more quickly, and you don’t have the pressure of paying anyone back or meeting certain deadlines, as it is all about you. If this is something that interests you, but you need a way to improve your own savings and financial status, then looking into something like binary options trading could be a way to make your money do a little more for you, though there are risks involved with this, of course. A binary option means that the gain or loss that is experienced on a trade is something that is automatically credited or debited to the trader’s account, so it can be ‘quicker’ money, for want of a better word, compared to shares.
A natural thought process for this kind of thing is that banks are much less likely to loan large sums of money to brand new businesses who don’t have any kind of track record to rely on. That is why bank funding might not be a first choice. You could try it, but you may not be able to get all that you need this way. If you can’t get money from a bank, then who do you look to? The next choice is to look for investors.
Investors can come in many forms as they could be family and friends. They could also be angel investors as well as venture capitalists. Although this can be a way to get cash up-front, you need to be careful when you think about how much business equity to give away right before you’ve even had the chance to get the actual business started. The kind of business that you are planning on can also impact the likelihood of people investing in it. So there are a number of things to consider.
Surround yourself with the right people
If you want to get a business up and running, then even if you plan to go it alone for the majority of the time, it is likely that you will need some help when it comes to launching your business. There are definitely a lot of people that can get a little overlooked when entrepreneurs are looking to get their business up and running. But who else is needed, if anyone is needed at all? A lot will depend on the industry that you are going into, as well as looking into what you can do yourself and where your expertise lies.
It is important to note that you shouldn’t be hiring anyone or anything like that until some legal things have been put into place. You need to set up the company formally and be registered with the IRS for tax purposes. Then you can complete and submit all of the business information and get an EIN (or employer identification number) which will be needed for hiring anyone. It can be wise to consult with a lawyer, as well as an accountant, and perhaps a financial advisor, again depending where you experience and expertise is. Simply put, unless you are an expert in these areas, then hiring these three people can help your business a lot, and can save quite a bit of money in the long run.
Those kinds of people aren’t likely to need to be on your payroll full-time, but having some contacts to just hire for certain projects can be really helpful. For regular employees, though, if that is something that you are looking to do, you need to have insurance. It is a good idea to shop around a little to find the best insurance for what your business needs, and who will give you all of the coverage that you need, at a rate that is affordable to you. Then you can get hiring, should you need to do so.
Location and website
Your startup business needs to have a physical address, as well as a web address. It could be an office space that you use or a place where products are stored or manufactured. Even if you plan to solely work the business from home, you can get a PO Box address or a work with a mail forwarding company to make the address look professional, and also mean that you don’t need to give out any of your personal information.
Another aspect to think about is that you will also need to build a website for yourself. Don’t wait until you officially launch the business to get a website up and running and off the ground. You can start promoting things now; it won’t do any harm to do just that. A website helps people to find you online, and look for you when they search for something in particular. Even if you’re not quite ready to get going with things, it can be an important aspect for business and for creating brand awareness. Not only that, but in a number of ways, you can start to generate an income through your website. You could also start to take some pre-orders or start to schedule in some appointments, all depending on your business model, of course.
Social media is another aspect of your website that should be considered, as it can work together for marketing purposes, as well as for customer services. Again, these profiles are important to have setup right from the start, rather than going back to them down the line. Set yourself up for success right from the start, and it will make a difference.