What you should know before starting a business
Starting a business can be one of the recompensing experiences of a lifetime. It can also be the most demanding. If you are not ready to handle those demands, then you are not ready to start your own business.
I know it is the dream of everyone to own a business but let's get real, a business will not just stay open and be profitable just because you dreamed it would.
Before you scroll down, let's know the difference between a startup and a business.
Difference between a startup and a small business
A startup is often misrepresented as being a new small business, but there are important differences defining them.
Starting a small business isn't easy, bringing a startup to fruition is even more difficult.
A small business will look to start generating cash quickly, startups might go through many rounds of funding and investment.
Their plan might include a budget that doesn't seek to be profitable for the first few years. They try carve out a brand new market.
Before you take on an entrepreneurial venture, it's important that you are confident in your capacity to carry out your project and be able to assess yourself.
Are you willing work long hours away from your family and friends?
Are willing to give up weekend trips with your spouse, dinners out with friends, sports activities, Saturday parties etc
You have to be prepared to work up to 100 hours a week for the first years.
Are you willing to put all of your assets and relationships on the line for your business? There are no safety nets.
Can you handle it if your gamble doesn't pay off? Many new businesses fail. Can you you survive the financial cost if your business don't succeed?
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Transform your business from a cash eating monster to a money making machine. All for freeIf you are willing to sacrifice your time for your business, then these are the things you need to know
Business plan.
A business plan will help keep you on track. Writing a business plan is the first real step any entrepreneur or prospective business owner should take.
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Not only does this show a true level of commitment, it also forces real and tangible answers to important and sometimes challenging questions. A business plan is also the first thing any potential investor is going to request.
This gives them a full understanding of the business venture being proposed, the owner's level of expertise and understanding of the opportunity, and the financial requirements and potential upside.
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Market research:
Is there a need for your services in your area. There are already too many places to but too many things.
You should think of your audience before starting any business, so you won't be stuck with your products.
Naming your business:
You need to pick a name that no other business is using, then register it. And when you pick your name, you need to make sure it was available as a web domain and on social media.
Operating assets:
Do you have the money to keep operating until you reach your break down point.
Location:
Location is very important in any business. This is another important factor you should consider before starting a new business. Are you going to be operating from home?
A lot of small businesses are now using social media to market their products.
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Vendors, suppliers etc.
Dealing with deliveries and pickups will take you away from other business activities. Be prepared to deal with angry and rude customers, frequently.
When you are band new, you are going to make mistakes. Customers will notice and complain. Can you deal with that?
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Competition:
You must be able to recognize when your market shifts or new competition crops up in your neighbourhood or more likely online.
Technology:
You have to be up to date with current technology so you can use it to market your business, monitor customer reviews online and use social media effectively.
Flexibility.
You will be wrong accept it, make changes, learn and then move on.
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Customer services:
You can't always make customers happy and make money. Do your best but don't sink your business trying to please everyone.
Dig in deep, make a great impression with your level of preparation, and start your business off on the right foot.
The next step is how to finance your business.
Most small businesses use their personal savings to start the business, because they are sure that when they advertise their products to the right audience, they will start getting little profits in no time.
Whereas for startups, they write a very detailed business plan, write proposals to investors that are likely to help in financing their business.
Common business startup mistakes
Not fully prepared
Over thinking your business plan
Not been flexible
Lack of focus, idea, or a research
Wrong audience
Fear of failure
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