Starting a new business on your own is a huge endeavor, one that shouldn’t be taken lightly. It might require some forethought and planning. To help you with this, here are our top 5 things you might want to consider before starting your business.
1. The nature of your industry
First of all, you should know what you’ll be getting yourself into. Clearly define what industry you’ll be in – try to be as specific as possible. Find your niche if possible. And then research your competition. See what they’re doing and how you can compete.
What do you have to offer that they don’t? Are you sure you’re offering something that isn’t already being offered by someone else? Is there even a demand for your idea/product on the market? If there is, can you compete in terms of cost and quality? These are all questions you might want to try and answer for yourself beforehand.
2. Your financial means
Starting a new business can be financially taxing, as well as mentally, physically, emotionally. Are you ready?
Gather your assets and see how much capital you have to start with. If it’s not enough, you might want to seek out more capital either through loans (from friends/family or officially through banks). If your idea is really unique, you might catch the eye of some venture capitalists or angel investors. Crowdfunding is also always on the table! And if all else fails, you can look into applying for a business loan through a bank or some small business association. Alternative, albeit short-term options such as nationally/internationally funded projects are also a possibility.
Now that’s just income. You will also have to take into consideration if your business will be profitable after payroll and taxes. Only you know how many employees you will need, so do the math. And don’t forget to really look into the taxes you’ll owe, and these can vary greatly from country to country, and even sometimes from city to city.
3. The risks involved
Referring back to the last point, you’ll want to be sure you have some funds to fall back on should things go awry. But let’s hope they won’t. Still, you’ll want to look into purchasing business insurance, and that will vary depending on your industry, of course.
Being aware of the risks involved in starting a business (and preventing as many things from going wrong as possible) is also important when it comes to getting a business loan. You might see a pattern developing here – do your research, have some forethought, and plan, plan, plan!
4. Any help you might need
You can bet you’ll start to feel overwhelmed at some point or another. To keep things running smoothly, you’ll want some people to help you out when you need it. Trusted and knowledgeable people. This is called outsourcing. Know your strengths and stick to them. But also know your weaknesses and outsource accordingly. You might be bad at IT, or accounting, or marketing. Find a specialist and hire them for help.
This leads us to the final point of this piece – one thing you’ll most certainly want to outsource and have help in from the very beginning are legal matters.
5. Business compliance
All this means is how well a business follows the laws and regulations that are relevant to its industry and country/region. Given that these vary greatly depending on the industry you’re in, your location, and your business’s structure, you can easily get lost and make some big mistakes. So, to be fully compliant, you’ll want a legal expert on your side. Ideally, one that specializes in commercial (i.e. business) law such as Optimal Solicitors based out of Manchester, England.
If you have a clear vision and knowledge of your competition, a solid financial backing, support from the right people, have taken the precautionary measures you can, and have a reliable legal expert by your side, you should be set to start your business. All we can do now is wish you the best of luck with your venture!