10 Things You Must Do Before Starting a Small Business
Starting a small business can be one of the best decisions you make. It will require some research and planning, but starting your own company is an accomplishment that many people don’t get to experience. This blog post discusses 10 things you should do before starting a business so that it can be as successful as possible!
One of the biggest things you can do when starting a new small business is to stay focused. Make goals, such as starting with a simple idea and expanding. This will help you stay focused on your company’s success!
A second thing to do is make sure that you have the right people in charge of various tasks. If for example one person is making business calls and another is doing research, it can be difficult to focus because they are both wearing different hats. It’s important not only to delegate but also divide responsibilities so everyone knows what needs to get done at all times.
Another tip when starting a new business venture involves feedback from others who might know more about your industry than you do or may give suggestions if there are any aspects of the business that need improvement or adjustments. For example: researching similar products online.
When starting a new business it’s important to have an online presence. This can be accomplished by updating your page on Facebook, Twitter, and LinkedIn as well as starting a blog for the company! The more people who know about you and what you’re selling, the better chance of success in terms of reaching customers.
Be sure that when starting a business venture, there is something unique or compelling enough about your product or service to make consumers want to buy from you. Having this one thing sets you apart from competitors and will help attract potential customers. Be passionate but also realistic with pricing: if not priced correctly then sales might suffer which means profits won’t either so take care when setting prices!
Lastly, when starting any kind of business, it’s always important to think about your exit strategy. What will happen if you want out of the company or are forced out by others? Have a plan for this ahead of time so that any potential disasters can be prevented and all parties get what they deserve when starting a new small business!
Things you need to think about when starting a business
1. Create a business plan
A business plan will outline the goals for starting a new small business and is essential to outline how you can create value for your customers. A well-thought-out business plan should include information such as:
- The purpose of starting the company – so that it’s clear what problem you’re solving
- Goals – including financial, marketing, customer acquisition, content strategy, etc.
- Resources needed – both human resources and money
- Timeline – when do you want the company to be profitable? When are milestones need by? What about an exit strategy from running this type of biz long-term (e.g., selling), or hiring someone else in order to have more time off? How quickly would you like things to grow?
- Strategies – including marketing, customer acquisition, content strategy, and more
- Management team – a well-thought-out management structure is essential to starting a small business. Who will be the CEO/President of this company? How many people do you need on staff in order to get things done quickly and efficiently? What are their roles going to look like, what skill sets should they have and how much experience does each person need for that role? Will there be any outside contractors hired or other partnerships formed along the way (e.g., with vendors)?
- Marketing budget
- Revenue streams – e.g., leads vs contracts; products vs services, etc.; ways new clients can find you online
This sounds like a lot of information and it can be. However, starting with the basics will help you get on track to creating your own business plan
2. Get your finances in order
One of the most important steps to starting a business is getting your finances in order.
You need to make sure you have the money for startup costs, inventory, and other expenses.
This step can be started at any time before starting your actual operation but it’s best to get as much information together as possible prior to starting up so that you know how profitable your venture will be from day one. Here are some things you should do: Get an accountant – If this is not something that comes easily to you, there are many accountants who specialize in helping businesses startup (and stay on track).
The sooner you find someone qualified and establish them as part of your team, the better off both parties will be! Set aside enough money for starting costs – A starting cost is everything from the initial inventory to any money you will need in order to get your company off the ground. If this isn’t a budgeted expense, it can be very difficult to keep up with other responsibilities while trying to start your business and may result in failure before even starting.
Start setting aside cash every month so that there’s enough when you’re ready! Create an accurate profit margin estimate – This means figuring out how much of each product or service you sell you make as profit after all expenses have been accounted for (including wages).
Once again, do not leave this number guessing but figure it out ahead of time instead because then once the opening day comes around, things are more than likely going smoothly if there was a plan in place starting from the beginning.
3. Find a good location for your business
Ideally, you should set up your business in a location that is close to where you live. You’ll save money on commuting and will be able to spend more time with your family while starting out. Consider how much foot traffic there is around the area: if it seems too desolate or busy, seek out another place for rent.
If I’m starting my small business from home I need an office space outside of my apartment/home?
No! It’s not necessary at all because when starting a small business from home most people work from their bedroom or living room and use conference calls for meetings instead of going into an office every day. In fact, some entrepreneurs are even taking advantage of working remotely – they work online for their company while traveling, starting a business with an internet-based income.
Finding the perfect location is important because this affects many things including:
- The price of rent
- How much foot traffic there will be in your store or office space
- What types of people you are going to attract as potential customers and clients. For example, if you are starting a home furnishing shop on Main Street where all the other shops have closed up from lack of patronage then it’s likely that most people who stroll by won’t stop into your next-door storefront either. And vice versa – rent may not matter so much when starting out at a new destination mall like the Mall of America which attracts lots of visitors even during slower times of the year.
- Starting a business in high traffic areas is important for attracting customers?
4. Write an elevator pitch to sell the idea of your business
An elevator pitch is a short, concise way to tell people about your business. You should get the point across in 30 seconds or less. It’s not easy, but if you want to start up and grow a successful company it pays off in dividends down the road! Now that we have our idea for starting out let’s put together an elevator pitch for it!
– How can I help them solve their problem(s)? ___Now go ahead and write one of these magical pitches for yourself using what you’ve learned so far. Remember…30 seconds or less!
What does my company do?
My company helps people find deals on their favorite items so they can save money and enjoy life more. This is perfect for working adults, parents with little ones at home, or anyone who just wants some extra cash in their pocket when payday rolls around. We offer coupons and discounts from all major retailers like Nordstrom Rack and Amazon as well as other niche stores that are great but often overlooked by shoppers looking to save time and money.
Who are my customers?
Our main customer base comes from busy professionals such as engineers, consultants, and doctors. They work in high-stress environments with little time to shop around for the best deals on their favorite items, which is where our service comes into play!
Why should they care?
Our customers are able to save money while also supporting local businesses that often get overlooked or discounted due to low demand. We help them find these shops so they can feel good about buying what they need at a sensible price without cutting corners on quality. This saves them both time and money with every purchase made through us!
- How can I help them solve their problem(s)? ___We provide coupons from big-name retailers like Nordstrom Rack & Amazon as well as niche stores other shoppers may not know about in order to save time and money.
5. Build relationships with people who can help you out, like landlords and suppliers
A good starting point to do this is by attending networking events in your industry. You can also reach out for advice and mentorship from friends, family members, or other business owners you know well. Networking allows you to find people who are interested in the same things that you are – whether it’s a certain type of small business idea or just starting up a new venture altogether. Plus, when they’re invested on a personal level with what you want to achieve, they’ll be more likely to help if needed!
Building relationships with suppliers and landlords can also be a way to ensure that you’re starting off on the right foot. Make sure you get in touch with these people early and often – they’ll know what’s going on when it comes time for negotiation (especially if there are other interested parties).
If you already have relationships established with suppliers or landlords before starting your business, this is great! You don’t want to alienate them by being pushy, so establish boundaries upfront about how many contacts will happen once starting up your company.
Also, make sure someone else has copies of contracts and agreements- whether it’s family members or friends- because things may not go as planned. If anything happens (like bankruptcy), having those documents somewhere safe means less delay when getting back on your feet.
6. Hire employees that are qualified for their positions
Every successful small business needs to hire qualified employees for key positions. Entrepreneurs often start out as the only employee, but as your company grows and you grow more confident in the capabilities of your team, it’s a good idea to find candidates that have specific skill sets or experience that will make them an asset one day one.
One of the many reasons why starting a small business is such an exciting prospect, but also so intimidating, is that you’re starting from scratch. You have to build and design your company’s infrastructure by yourself. One way to make sure things run smoothly and faster from the start is to hire employees with specific skill sets or experience:
You want to start with hiring your core team members to build your company’s foundation.
These are the people who will do all of the work for you, and set up a starting point on which potential employees that come after them can expand upon.
It is also important to hire individuals with specific skill sets or experience in order to be able to save time by not having to train each new employee from scratch – this will help cut down costs as well since they don’t have to go through training. The more qualified somebody is when applying for your open positions, the better chance he has at being hired.
Keep these things in mind before starting your own business:
- Hire employees that are qualified for their positions
- Start with hiring core team members
- Make sure your employees have specific skill sets or experience
- Keep in mind that qualified people are more likely to be hired.
7). Outsourcing can help keep costs down
Local Businesses often have a difficult time finding manpower, especially when they are just starting out. One way to help mitigate this issue is by outsourcing the work to someone else. This can be done in many different ways and depending on what type of business you’re looking for some methods might not fit your needs at all. The best part about hiring an outside source is that those people will take care of everything from start to finish so there is little risk involved for your business owner aside from paying an outside source.
Outsourcing is a great way to lower costs, increase efficiency and productivity.
Again, outsourcing is not for everyone and it’s a risk to your business in the sense that you are paying someone else more than what they’re really worth but if you have the capital to spare then this may be a good option for keeping costs down as your small business grows.
Companies like MySource Solutions can help with your outsourcing needs, they can help with a variety of job functions including virtual assistance, customer support, eCommerce support, and much more.
8. Find a mentor or someone who has experience in your industry
Finding a good mentor in your industry can have a huge impact on your success. A mentor can provide you with whatever knowledge, insight, or experience that they have to offer and help guide you through some of the difficult decisions in running your business.
Some possible mentors are: Business owners from other related businesses, successful entrepreneurs who started their own company in an industry like yours, professors at local colleges/universities with expertise in your field, and professionals such as lawyers or doctors who work closely within industries similar to yours.
Finding someone willing to be a mentor is all about asking around! The best way to find somebody experienced enough for this role is by networking with those people whom you trust and respect most – talking it over with them may lead them into offering themselves up as potential mentors if they know somebody who would be a good fit for you.
Another way to look for mentors is by talking with other entrepreneurs in your industry or from the same city as you, asking them if they might have any connections that could help further your business.
- Business owners often have an idea of what they want their business to be, but this might not match the needs in their industry.
- A mentor can provide valuable insight and even help you avoid costly mistakes.
- Think about what you want to do, and then find someone who has experience in that industry.
- Do not be afraid to reach out! Business owners are often willing to help other business owners succeed.
9. Create an LLC if you plan on hiring employees
This business may have a specific business structure, such as an LLC. If you plan on hiring employees in the future and do not want to be personally liable for their actions, then it is important that your business has this type of protection.
– You must first decide whether or not you’re going to hire employees – if so, then take these steps: Create an LLC with the state’s Secretary of State office (usually just requires filing some paperwork). Once registered/incorporated, appoint someone who will act as the company president or CEO; make sure they are legally allowed by law to act on behalf of the company and represent its interests before government agencies and courts. The person whom you choose should also sign binding agreements without limiting the business’s power of attorney.
– If you are not planning on hiring employees in the future and want to protect yourself from potential liability, then you must incorporate your business with a limited partnership or use another form of business structure that will provide personal protection for owners.
Business Structure: Limited Liability Company (LLC)
An LLC business provides owners with a balance between limited and unlimited legal liability; so if something goes wrong within an enterprise such as lawsuits or government regulations – then only what is invested into it can be lost rather than all assets/properties owned by its members including their homes, cars, etc.
– A company’s managers who have been given power of attorney should also sign binding agreements without limiting business’ power of attorney before they’re appointed in order to resolve any potential disputes that may arise later on down the line when you no longer want them handling business operations.
– Another benefit of an LLC business structure is that it can provide personal protection from liability without requiring a long and complicated business registration process as would be required with other forms of business structures (e.g., LP, SP).
Business Structure: Sole Proprietorship (SP)
A sole proprietor runs a business by themselves with no partners; they are solely responsible for any debts incurred by it as well as profits made which can make them vulnerable depending on what type of business you’re operating because they could lose everything should anything happen within that business – such as lawsuits, government regulations, etc.
- One way around this risk is through an LLC business structure, which gives business owners personal protection from liability while still allowing them to be the sole owner in charge of day-to-day operations.
Business Structure: Limited Partnership (LP)
A business may choose between two types of partnerships: general partnerships and limited partnerships. A general partnership is an agreement where all partners share equally in both profits and losses incurred by the business, whereas a limited partnership has more restrictions than just who can be named as a partner; it usually involves one person (called “the manager”) having control over day-to-day operations while other people simply supply capital or expertise when needed.
- An LP requires more paperwork and business organization than a general partnership, but also provides personal protection for its owners.
- The main benefit of an LP is that the liability associated with business debts/losses is limited to what’s invested in the business. This means if you contributed $5000 towards starting your business while another person supplied all of our expertise or capital – then they would be liable for any losses incurred by the company whereas you will not be legally obligated to pay anything beyond what was originally put into it as equity.
- If someone else contributes money without being named one of the partners (for example through loans), then this debt may become joint between them and other members when filing taxes each year depending on which state you live in.
- This business structure is recommended for those who do not want to be personally liable or have the responsibility of running a business on their own, but still want some protection from liability and potential losses if something were to happen without having full control over day-to-day operations.
10. Create a marketing plan to help grow your business
This is one of the most important parts of starting a small business. This will be the blueprint that you implement for all your marketing efforts, and this should include tactics such as paid advertising, social media management, email campaigns, video marketing content creation, etc. You’ll need someone on your team who knows how to manage these channels well in order to make sure they are contributing towards growing revenue streams from each channel.”
“A good place to start is by understanding what type of customer you want to attract-knowing their wants and needs will help target audiences which might not have been considered before.” “This will be the blueprint that you implement for all your marketing efforts; so it must also include channels like SEO & CRO in order to make sure they are contributing towards growing revenue streams from each channel.”
There’s no denying it a new business requires a good marketing plan to thrive. It’s one of the most important parts to starting a small business and should include tactics such as paid advertising, social media management, email campaigns, video content creation, etc.”
If you’re considering starting a business, take some time to research and plan before diving in. The 10 things we’ve discussed should help you get started on the right foot! It can be an exciting journey–one that many people don’t get to experience because they never start at all. But it won’t happen without hard work, determination, and careful planning. Get out there and show what you got! ;)
About MySource Solutions
MySource outsourcing company is the leading provider of outsourcing services in North America. We help companies reduce costs and increase their bottom line through our innovative solutions, which include a wide variety of business process outsourcing (BPO), customer service, back-office operations, and more. Outsourcing services have become an increasingly popular choice for businesses looking to grow while maintaining control over their budget.
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