Starting your own business is an exciting process that easily can become overwhelming. There are many moving parts, so being prepared can make all the difference in the success of your business. Though, with a rise in unsatisfying working conditions throughout corporate America it is no surprise that the coming generations are changing the workforce as we know it.
According to the U.S Census Bureau, 5.4 million new business applications were filed in 2021. Now more than ever, Americans are taking charge of their career paths, seeking out financial freedom and spending their time more carefully. If you are ready to start your own business, here are a few tips to get you started.
Create a Business Plan
Behind every successful business is a steady and stable foundation; specifically a solid business plan. A business plan should clearly be able to state the goals of your business and how your business expects to attain those goals. A typical plan contains several pages of an in-depth outline. This outline should consist of your company’s mission statement and the areas of the business that will lead to its success reflecting on areas both internally and externally. The U.S Small Business Administration has templates and a step-by-step guide to help tailor a business plan unique to your business. Having a business plan will not only help you pave the way to success but will be a crucial tool when seeking out investors.
Learn About the Competitors and Market
Don’t make the mistake of focusing all your time and energy on the development of your business. Instead, dedicate some time to learning about the competitors and market environment. Are there other services or products that are similar to yours? Is the market oversaturated with similar products or services? Having this knowledge can not only provide you this additional insight but also help you understand what sets you apart from others, which is imperative if you’re ever looking to get some additional outside funding. To do this, you’ll want to conduct the following:
Primary Research
When you think of research the first thing that comes to mind is observing and collecting previous data. During the first stage of your market competition study, the objective is to collect data that has not been gathered before. This can include any information that you go out and collect yourself. Examples such as interviewing potential customers, surveying your potential clientele, and observing the needs and wants of the customer base you are trying to target.
Secondary Research
Unlike primary research, secondary research is the collection of data that already exists. This
includes observing and compiling data that has already been collected to give a broader view of the market your business is being built in.
SWOT Analysis
SWOT is an acronym for strengths, weaknesses, opportunities, and threats; four crucial areas of your business to help analyze how well your business will perform when launched into the market and navigate the direction and decisions of your idea. Keeping your SWOT analysis organized and in focus will give you the most insight to this portion of your study. Utilizing an analysis template will be useful to keep organized and look professional.
Budget Your Funding
A major factor that holds someone back from starting a business is finances. Not just budgeting and accounting throughout the process but coming up with the initial funding to make your dreams a reality. While seeking out friends and family as investors could be an option for some, utilizing a home equity line of credit might just be the right solution for you..
A home equity line of credit provides a lump sum of cash that can be used to get your business started, as you pay back that sum of money it creates a revolving line of credit that you can use throughout the duration of your business. Knowing this line of credit will always be there can provide a cushion throughout the duration of your business term. You can also use a startup credit card to help you with your finances such as paying bills and purchasing office equipments.
Setting a budget is key to financial success. This outline will help prepare your expenses and manage the amount of money coming in and going out. It is impossible to make any financial decisions if you do not know what you have to work with. Not only will this avoid financial mistakes but it will play a huge role in setting and achieving the goals created for your business.
Take Care of the Legal Aspects
Turning a good idea into a business doesn’t happen overnight. There are a lot of steps you must take first in order to carry out the business the way you want to. Depending on the business structure you’re looking to pursue — a limited liability company (LLC), limited liability partnership (LLP), sole proprietorship, or corporation — will affect the amount of taxes you owe and daily operations. Both of these can determine whether or not your personal assets are at risk, which is why it’s important to consider this first, before taking care of the rest of the legal requirements that are associated with starting a business. Once you’ve done this, you can then begin to establish your business, starting with the registration process. Beyond this, you’ll also want to look into filing any business information within the state it’s located in, open a business bank account, apply for an employee identification number, any licenses or permits you may need, and finally, business insurance.
Starting a new business is both strenuous and rewarding. Taking this step can better your personal life and even the community you live in. Be open to adjusting your vision, your business roadmap, and the timeline of your goals. Taking into consideration the changing market
of the community, you are reaching and never lose sight of your passion for why you started!
