We all dream at some stage of being our own boss and having the power to show up when and where we want. Sure, running your own business does give you a level of freedom you generally won’t find in the corporate world, but it also comes with the burden of additional risks and threats. If you think you have what it takes and be a successful entrepreneur, here are some tips on how to start up your own business:
The big idea. Think about the type of business you want to run; is it a franchise, an existing business, or a completely new business? First and foremost you need to come up with a business idea that can be profitable. It’s important here to think with your head and not your heart as many entrepreneurs fail after they haven’t completed enough market research to determine if there is room in the market for their offered products or services
Strategy and Planning. It’s important to work out your business plan before you start so you can define your business strategy and stay on track to meet your goals. Your business plan defines the VMG (Vision, Mission, Goals) of your business and serves as the outline of what you are looking for and what you are aiming for.
Legal Logistics – There are three common options for determining the structure of your new business
• Sole trader or sole entrepreneurship- you are the only one who owns the business;
• Partnership- there are two or more owners
• Company or corporation- there are 5 and more stock owners in the business.
If you are looking for self-employment and high profits then sole entrepreneurship is possibly the most preferential business structure although bear in mind there are significantly more risks involved.
Target market and store location. Think long and hard about which market you are targeting and where the most appropriate location for your store will be. Who will want to pay for your goods and services and how will the location of your business affect this? It’s important to do as much market research as possible so you can make the most informed decisions. Be sure to identify competitors, seasonal trends and identify any other factors which could affect your business.
Get the financing you need. Having enough money in the bank to get things going is a fantastic situation for any new business owner. But the reality is that many new business owners require some form of financial assistance. If this sounds like you then be sure to shop around and work out which lender offers the most appropriate products and rates to suit your current situation. Remember to only borrow as much as you need to avoid paying excess interest and fees, and if you find yourself with a surplus of cash you should place it in a business account with a high interest rate to gain the most interest possible.
Determine your taxation and legal obligations. Just It pays to be aware of all your relevant taxation obligations and responsibilities. There are taxes collected by the state, federal and even governments which you will need to consider. Additionally, make sure you have obtained all the required permits and licenses to operate your business.
Have business insurance. It is wise to have some sort of business insurance to make sure your capital, commercial risk, and even income are protected.
Focus on business growth. It is very important to have business growth goals and do everything you can to achieve them. A growing business is successful businesses so aim high and don’t get complacent with your current market share.
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