Opening a new business is more than printing a business card. What you do or don’t do sets your business up for the future. Here are some things to think about when launching a new business. 2-minute read
Starting a new business can be exhilarating, overwhelming, scary, exciting, and hectic. While you may be a rock star at your trade, you might be a little lost in figuring out what you need to do to get started. Companies would never fold if success only meant offering your service or selling a product.
Before You Get Started on Your Start-Up!
You have a great idea, or you see a need that doesn’t have a solution. What do you do from there? Start by researching the competition, creating a start-up budget, determining the best type of entity to set up, and developing a business plan.
Let’s break that down. Researching the competition is vital. Not only will this help you with pricing your product/service, but it allows you to fill a void in the marketplace or determine what is unique about your offerings, or why a customer would want to do business with you.
One of the areas that I find many entrepreneurs struggle with is knowing how much it will cost to open their business. Even with lower start-up costs for home-based businesses, the costs can add up. Determining the start-up costs allows you to ensure you have the capital needed and have a realistic timeframe to launch your business .
Determining the type of entity not only depends on the type of business and number of partners, but I can’t stress how important it is to talk to your CPA about your personal tax situation. What is best for you may not be the same for your friend, neighbor, or partner.
If you need financing or are looking for investors, a Business Plan is necessary. Even if you are self-funding your business, a Business Plan is a good idea. It is a roadmap for what you want your company to look like, determine your target customer, identify your short- and long-term goals, and most importantly, how you will get there.
Get Your Ducks in a Row
Once you have your concrete idea, budget, and plan, it is time to put the pieces together to open your doors. It helps to prioritize and have a realistic time frame for launching your business. For example, moving into a space that requires tenant improvements will likely take 6-12 months to open, whereas a solo service provider without a storefront could launch within 90 days.
This is where I see businesses waste money when they don’t have the big picture in mind. They either spend money on a service they don’t end up using or pay twice for the same service due to not vetting a vendor or understanding what they will receive for their payment. My advice is to choose vendors wisely, don’t get sucked into a long-term contract, and think about what aspects can integrate with one another.
Surround Yourself with Professionals
I believe no business owner can do without four professionals – an attorney, a CPA, an insurance agent, and a consultant to help you launch. You do not want to skimp on these four areas, and the investment is well worth protecting yourself and your company.
Five Best Practices When Starting a Business
If you are ready to take the plunge, here are some best practices to keep in mind.
- Finances – Do not co-mingle business funds with personal funds!
- Obtain a Business Address – Do you want your home address out there?
- Decide if a Trade Name is Right for You – If you go with an LLC, it’s something to consider
- Value Your Time – More time is the one thing that money can buy
- Hire Talent with the Needed Skillset – Uncle Bob may be trustworthy, but is he the best man for the job?
Check out this post to read more about these Five Best Practices .
Time to Get Your Feet Wet
So, let’s go back to the question I posed at the start. Are you going to wade in or jump in? As Benjamin Franklin wrote, “If you fail to plan, you are planning to fail.” Before leaping off a bridge, wouldn’t you want to know how deep the river is?
Jumping in might sound quicker and more exciting, but it could be dangerous. Either way, you’re going to get your feet wet, so why not check your swimsuit is tied tight, check the depth by taking one step at a time, and then wade in confident you have the right support on hand to help you!
Contact Flourish Today
Like jumping into a river, starting a business can be daunting, but it doesn’t have to be outright scary! Having the right people on your team can save you time, money, and headaches! So, why not start your business with a Flourish?