Starting a business is an unspoken part of the American Dream. Who doesn’t want the freedom and power of working for themselves?
Well, the truth of the matter is that it isn’t as easy as planning a few things and pressing play.
Before you embark on a risky endeavor, read these 7 things to consider when starting a business. It will help you realistically decide if this is the best move for you right now.
1. Assess Your Level of Dedication
In other words, how much passion do you have that you’re willing to commit to acting on?
Starting a business, no matter how much you plan, will take much more time than you expect it to. If you’re already spread thin with other life commitments, it probably isn’t the best time.
You want to feel passionately dedicated to your ideas, rather than pursuing them for financial prosperity. Using passion as your fuel will help you create something unique, which will help your business thrive.
On the note of dedication, there are two key things you should do to keep fueling your fire.
The first is to find a mentor in your field of interest. They should be knowledgeable, open to communicating, and an inspiration to you. If you can’t meet with them in person, it’s still valuable to have a mentor online.
The second tip is to dedicate an office space for yourself. So many people start a business on their couch (or in their garage, like Steve Jobs).
While this works for some, it’s often not the most efficient option. Having your own workspace dedicated to your business is essential to obtaining your highest productivity.
Get a mentor and get a desk.
2. Throw Away Your Fears
Chuck them in the garbage. Fear will only hold you back.
It’s a risk to start a business, of course. That’s why everyone doesn’t do it.
Still, being afraid leads to a lack of confidence that you can’t afford. Instead of being afraid of failure, allow yourself to be flexible and accepting.
When obstacles come up, keep going. You may have to start small and work slow, but remember you can overcome anything that pops up.
3. Think About the People
First, think about your target market. These are your customers and are your biggest resource.
Understanding your target market helps you shape your business by influencing your services, distribution, pricing, and communication.
After you have a good understanding of your market and who they are, think about the people you want on your side.
You’ve already thought about your mentor, but what about your business partner and staff?
A typical but important tip is to try to keep your family and friends off of the official team. It can create more problems than it’s worth.
Look for qualified people who are passionate and willing to dedicate their energy.
4. Things to Consider When Starting a Business: Everything!
Planning can never be over-emphasized.
If you conduct research on the reasons why businesses fail, you’ll see a range of problems from lack of skills to doing it without a team.
When we read these, all we see is a lack of planning.
Think about every aspect and detail of your business before you start it. You’ll want to put thought and research into things like your:
- Business structure
- Business plan
- Financial and tax plan (including start-up funds)
- Goals and steps to reach them
One part of planning many people overlook is personal planning. You can plan your business all day, but you should also have a plan for how it’s going to look for yourself and your family if you have one.
Plan how much of your time, money, and so on you can dedicate.
Unexpected things will still come up, but the more you plan, the more you will be prepared.
5. Willingly Outsource
Once you plan what you need to get this thing going, figure out what work you can outsource.
Outsourcing will save you time, energy, and money in the long run.
Otherwise, it may take you forever to get your business off the ground. Plus, outsourcing lets you hand over tasks that you might not be very good at.
This could be logo creation, website design, financial planning, and so on.
6. Cover Your Bases
By bases, we mean assets.
Before you launch anything, make sure you protect your investment with insurance. Depending on your operation, you may need insurance for yourself, employees, products, and property.
You can read more here to understand the different types of property insurance.
Another aspect of covering your bases is making sure you do what you can in terms of cybersecurity.
This means having unique passwords, limiting access to confidential information, and putting a firewall on your computer.
This may not seem relevant to you, but it’s relevant to every business to protect credit card information, social security numbers, and client information.
7. Don’t Cut Corners
Starting a business is very exciting. It’s normal to want to sprint ahead full-force.
However, you should try to pace yourself. Go slow and do everything right so you don’t have to do it again.
It’s like the saying “measure twice and cut once”.
Do your research first, make solid plans, and look to others for advice and support.
Also, you may want to cut corners by getting discounts on everything or by seeking out the cheapest option. While this may save you money now, it could cost you even more in the long run.
If you think you have to cut corners to start your business, now might not be the best time to move forward with your ideas. However it is worth mentioning that there are more affordable options for getting started. For example instead of spending thousands of dollars to hire an attorney to form your LLC, you can simply use an affordable LLC formation website.
Pursue Your Passions
These things to consider when starting a business will become your best friends.
If you can think logically, act accordingly, and remain open and flexible, you can’t fail.
Create your dream reality, and keep reading our blog for more tips and inspiration on how to do it.