We all want to be our own boss but only some of us make the jump to starting our own business. It is not easy and it will be more work than you have ever done before, but the rewards are greater than imaginable. When you start your business and see it grow and develop, it is like a parent watching their child grow. Some who want to start a business but don’t because they do not have the direction or support to get it done. Here is a quick list of 5 things that every potential business owner should do before starting their business.
- Do Some Research. Too many people just start a business because of an idea but have no idea about the need or market. Is there competition? How many potential customers are there in your area? Should this business be started in a different area? Too often do people think they have a great idea only to see it done cheaper elsewhere. Do not put yourself in a business that can not compete in it’s industry. Make sure there is a need and customer base right away.
- Organize Your Finances. Everyone who is starting a business believes that they are going to make a ton a money. Why start a business unless you believe that? However, it does not always work out that way. Sometimes your projections are off or unforeseen expenses occur. Regardless, it is absolutely necessary to properly map our your finances and projections to be as accurate as possible. Since we deal with new business financing, too often do owners not properly map out their finances and it will not only hurt their operations but it will prevent them from getting the financing they need. Creating accurate projections will not help you manage your cash flow but allow you to get financing when needed.
- Talk to an Attorney. There are a lot of legal hoops that new businesses must jump through. It is very important to properly set up your business for your business future and your tax future. Whether you want to start a sole proprietorship, a partnership, LLC, C-Corp, S-Corp, or another type of business, we highly recommend you speak to an attorney to set it up the right way. In addition to setting up your business the right way, it is vital to make sure you acquire any and all necessary licenses and approvals from state, federal, and local government when starting your business. All industries have different laws and restrictions so speaking to an attorney will help ensure that you are set up for success.
- Organize Your Operations and Pick A Location. Are you going to be starting a restaurant or selling sneakers online? If you need a brick and mortar store front, you must make sure the location is optimal. Any restaurant owner will say it is about location location location. Having great food and service is important, but nothing matters more than location. The same goes for any store front business, you must know who your customer is and make sure this is a prime place for them to visit, browse, and shop. The location is a huge measure of success so know where you want your business based. Once location is picked what needs done and by who. Map out what work will need done on a day to day basis so that you know how to make it happen as quickly and efficiently as possible. Once everything is mapped out you will know how to get it done and where you will need help.
- Select Your Team. The greatest business owners know their success is not just because of them but the people they surround themselves with. You must find the right people to work with and bring them on as a partner or employee. There is only 24 hours in each of our days and we all have things that we are good at and bad at. We need a supportive team to help in the areas of need. Whether you need to hire an engineer, waiter, designer, or tutor, it is necessary to make sure they are the right person for your team. They must support the vision of the company and be a team player. When you find these people, hire them and watch how they take your ideas and business to the next level.
We help many future business owners realize their dream and start their business. This list is not all that should be done when starting a business but it is the big 5 than needs done. If you are thinking of starting a business please give us a call. we are here to help!
