Most times when starting a business, we are really excited about the idea of the business and rush to set it up. Never stopping to consider every detail. Unfortunately, passion won’t sustain a business by itself so there are few more things to consider before starting your dream business. Here are 10 things you should consider before becoming a business owner.
Before starting the business, it is important to consider if there is a market for the business. The number 1 reason why most businesses fail is there is no market need. What problem will your business address or solve? When you know what issue your business solves it makes marketing and branding your company much easier. It will also help define your target audience.
How will you fund your business? 33% of small business owners claim lack of startup capital was their biggest challenge. Some beginning entrepreneurs crowdfund, asking their family and friends for donations. While others, continue to work a 9 to 5, apply for loans, use personal savings or use credit cards. Will you need investors? These are all options to consider when thinking about starting a business. Keep in mind, 29% of businesses fail due to lack of funds.
Determining the organizational structure of your business can be a difficult task. Look at your business idea and the type of business you are looking to start and determine which business structure it would identify with most. Research the legal and tax rules and regulations of the structure you are considering. The different types of business structures are Sole proprietorship, Partnership, Limited liability company (LLC), Corporation, S corporation, B corporation, Close corporation and Non-Profit corporation. This can be a lot to think about and consider.
Do you have any support for you and your business? Whether the support comes from friends, family or your network it is essential. If you don’t have a support system, there’s a couple ways to find one. You can acquire a mentor, attend networking events or join a professional association.
What are your goals for the business? You must consider what your end goal for your business will be. Whether it will be a local based business with one location or if you would eventually scale and grow the business. Do you have a plan in place to carry out your goals?
How will you market your business? Every business has to market their product or service. It is important to promote the value you deliver to your customer. There are many different ways to market so you will have to determine the best avenue for your business. Not every business should use social media marketing. It’s important to include a marketing plan into your business plan, that way you have a solid foundation to begin with.
Beginning a business can be stressful and it can be overwhelming. If you are struggling to organize or consider all of what it takes to begin your business, check out our Foundations program here! Need additional assistance? Contact us so that we may connect you to the resource you may need.
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