Perhaps you have finally decided to start a business after so many weeks, months or years of wanting to do so. Perhaps it’s because you are tired of your current job or can’t stand your boss anymore. Maybe you just feel being a business owner is your purpose – what you are cut for.
Whatever be the case, you are probably ecstatic and scared because you are about to start your own business. The goal of any entrepreneur is to start a business. But there are certain things you ought to know and do if you want to avoid foundational errors. These things will help you avoid mistakes that are capable of making life difficult for you later on.
The attrition rate of start-ups is extremely high. Several new businesses go under in less than 5 years after they begin operation. There are many factors responsible for this worrying reality. Poor education and preparation before starting are chief among the reasons most new businesses fail. Click To Tweet
Before starting a business, it is essential that you consult professionals – accountants and lawyers – and other entrepreneurs as well. This is certainly going to help you escape many avoidable problems.
This post comprises five (5) things you must know – or do – before starting a business. If you truly want your new business to be successful and not just be another failed enterprise, keep reading.
Learn about the industry; own your brand name
Knowing the industry you are foraying into is important. You must have a passion for this industry and have a good understanding of its trends. Before you start your business, you must come up with an idea that excites you. You should have an idea that will sustain you in your chosen industry.
Having ample knowledge of the terrain on which you are about to set foot is essential. You must know what the industry is all about, how it works, what problems to expect, how profitable it is, etc. This knowledge will serve you well when you eventually start.
Owning your name is just as important as knowing the industry. To own your name means that your proposed business name is not yet trademarked. Given recent business realities, it also means that your proposed name should be available as an internet domain name.
You have to carry out an advanced research to certify this. Once the name is available, you can obtain the trademark by following due process. This eliminates the probability of the event of some critical potential issues.
Acquire knowledge of the legal implications
Ensure you have knowledge of all the taxes, licenses and regulations you are required to pay, obtain and follow respectively for your emerging business. Once you complete your research, consult a lawyer and an accountant to help you structure your business the proper way.
Act in compliance with the law and by the book at all times. This guarantees that no legal or administrative detail will stand as a barrier to the smooth and prosperous running of your business.
Knowing all the necessary legal entailment will help you act accordingly when you start your business. It helps you know what to do and what not to do. It prevents you from landing into trouble of all kinds with the authorities.
Carefully consider your finances
Thinking through your finances before you actually start your business is very essential. The emphasis on this particular point is justified. Before you take the plunge, you must know your financial standing. The reason is simple. You need funds to set up and run the business for some time before it begins to yield any returns.
Ensure you have at least enough money to manage your business and take care of yourself simultaneously. You certainly do not desire to be bankrupt few weeks or months down the line. So, devise a plan to take care of your finances to prevent you from going broke.
If you are quitting your job, make sure you have enough money in the bank. The fund should be enough to sustain you and your nascent business pending the time the business breaks even. That’s why it’s important to first start on the side while still earning at your day job. You can quit when you are financially stable and safe.
Acquire all the knowledge you can on the financial commitment of starting and managing the particular business you choose. Know how you would effectively manage your business and personal expenses during the first few years of the business.
You need a plan
Starting a business without a plan is a recipe for calamitous failure. Any endeavour without a plan will surely result in a sheer waste of energy, effort, time and resources. A plan is paramount to the success of your business.
Things may not go 100% according to the plan but better with a plan than without it. The business plan will provide you with a sense of direction. It will inform your decisions and guide you in the running of your enterprise. It will be your compass and roadmap to business success.
Starting without a plan results in a directionless trajectory and ultimately, failure. Click To TweetA solid comprehensive plan prior to your starting at all puts you on the path to accomplishment after you start. A plan will help your business in far too many ways.
You can outsource the task of coming up with a business plan to seasoned professionals who render this service at a fee.
Business success doesn’t happen overnight
It goes without saying that it takes a great investment of time and a lot of hard work for success to be achieved. Always remember: a seedling doesn’t become a big tree the day it’s planted; it doesn’t become mighty overnight. Click To Tweet
Before you start your business at all, you must come to terms with the fact that it will take years of sheer hard work, resourcefulness, steady growth and several other tangible and intangible investments for your business to become a success.
Good things take time. It takes time for success to happen. It takes patience and practice to build a successful business. Knowing this before you take the plunge will help you to remain steadfast when the going gets tough.
We can help you do the necessary groundwork before you start a business. Let’s talk here.