Thinking about starting a business?
It’s easier than ever to start a business these days, but that doesn’t mean you should dive in without a plan.
Without a clear plan of attack, you could end up wasting money, time, and resources. For instance, you might not give your business the right level of protection or you could fail to check whether there is enough demand for your specific niche.
Making avoidable mistakes will only stress you out and make it harder for your new business to be successful. Take the time to get it right!
Here are some crucial steps to take when you’re starting a business.
Do Your Research
The first stage of starting a business is one that a lot of people skip over or speed through to their own detriment: it’s the research stage. Before you start pouring money into your business, you must complete the right level of research.
Your business will always start with an idea (which could be simple or complex) such as selling a product or service. Don’t automatically assume that there’s an audience for that particular product or service just because you’re interested in it. Do some research and check the demand for similar products.
Your prices must be set at a level where you’ll make a profit and keep your product desirable for customers. There’s no point in releasing a product on the market if there are similar items and options available at a far lower price that provide the same quality.
You can hire specialist services to complete the research for you, but it’s worth getting a feel for the market yourself. Make sure you understand your audience, their pain points, their questions, and their needs.
Handle Legal Considerations
Consider the legal implications of starting a business. What happens if your business incurs a loss? Will the debt pass down to you personally?
You can avoid this if you set up your business as an LLC. You might think that this is going to be expensive but it doesn’t have to be. In most places, it has a $125 filing fee that is small compared to other business costs.
Other legal considerations include the design of your logo and your business name. Be sure they aren’t too similar to ones that already exist, and if they are, then you could face legal action as another business owner could claim this will cause brand confusion.
If you’re worried about the legal implications of starting a business, then speak with a legal advisor. The right legal advisor will ensure you’re taking the right steps such as complying with the latest data regulations regarding running a business and managing customer data.
Review Your Budget
Consider your business budget and how much it is will cost to run and manage it in the long term. This depends on a variety of factors including your industry and the type of business.
An online company will always be less expensive to run than a typical brick-and-mortar business because there are fewer fixed costs. You can run your business from home and claim tax benefits.
Also think about how much you should spend on marketing. The general rule here is that 20% of your total budget should be put towards marketing. This will guarantee that you’re spending as much as you need to, particularly when compared with key competitors.
You may set up various credit streams so you always can access the funds your business needs, especially as you grow and expand.
Build the Right Team
Build the right team for your business, and hire employees who are dedicated to strengthening your business.
A recruitment management service can help interview the best people for your business rather than wasting time looking at people who aren’t the right fit.
If you can’t afford a recruitment manager, then you must research the right questions to ask in interviews, specifically with reference to key positions in your business.
Consider the legal ramifications of hiring different people, such as you can’t give anyone special benefits when they are competing for a position, but make sure you provide equal opportunities to everyone who applies.
- The Edit My Life Planner will help you get more done in the next 12 weeks than you did in the past 12 months.
- Sign up for FREE productivity worksheets and more in the Editor’s Toolkit
- Schedule a FREE Life Editing Strategy Call
- Follow me on YouTube, Facebook, and Pinterest
- Book Outlet, save $10 off your first order
- Picmonkey, save 17% when you sign up for my favorite online photo editor
- Kajabi, start your free trial of this all-in-one platform for entrepreneurs
- Book Like a Boss, start your free trial for this beautiful and user-friendly scheduling app for coaches and consultants
- Epidemic Sound, start your free trial for the best music for YouTube videos
- Passion Planner, save $5 off your first purchase
- Trello, free elegant project management app
- Beaver Builder, my favorite WordPress page builder