This is a collaborative post by Ellie Jo with tips to start your own small business.
Starting a small business can be difficult, but on the flip side, it can also be very rewarding. If you want to give yourself the highest chance of business success, then here are some tips that should help.
Tips to Start Your Own Business
Address any Excuses
So many people want to start their own business, but not many of them actually go ahead and do it. There are so many excuses that you can use to try and delay your project but if you keep on doing this then you won’t get anywhere. Sure, it’s normal to worry about the risks but if you let that stop you in your tracks entirely, then you may never end up pursuing your dream.
It’s so important that you listen to what your friends and family have to say. As you learn more and more, you will then be able to make better decisions and you will also be able to shape your entrepreneurial journey too.
If you can, keep notes from any resources that you might come across and also make sure that you develop a substantial and detailed plan as well. If you can, you should also try and connect with experts in the industry. This could involve signing up with social media or even trying to go to conferences and events. When you do, you will be able to get some advice from the best and this can work wonders for your progress overall.
Be a Solution
You should never start out with your idea with what you want to sell. Instead, you should think about the problem that it is going to solve. It’s way easier for you to gain a customer base when your business is actively fixing a problem. Ultimately, you have to make sure that your business is going to fill a hole that is currently present in the market. The more you are able to do this, the more effective your business plan will be.
Keep Things Simple
If you have an idea and you are ready to run with it, then you need to make sure that you don’t overcomplicate things. Don’t let your concept snowball into something that it’s not because if you do, then you might end up with an end product that is expensive and that nobody actually wants to buy.
Ideally, your business idea should fulfill a promise and it should also exceed expectations where possible. If you have a lot of features that actually water down your offerings, then this will cost you money and you may even find that you end up compromising your idea. If you can, it may be worth trying to compare loans so that you can give yourself the highest chance of developing your idea to the best of your ability.
Count Up the Costs
When you start to really develop your business idea, you then need to add up how much it is going to cost you. You really do need to make sure that you factor in every possible business expense here. Some of the costs that you need to include are rent, marketing, and even the location. When you are calculating your costs, you need to come up with the most educated number you can. When you have done this, add on 20% or so. You also have to think about your personal budget as well. This could include how much you need to live, as well as your rent, food and gas bills.
Imagine Having Zero Money
There’s a small chance this is going to happen to you at some point. At the end of the day, over half of new businesses actually fail within the first 5 years. How would you handle not having an income at all? It’s a good idea for you to come up with a “worst-case scenario” plan. When you do, you can then find out where you can go in the event of a business collapse, while also finding out how much money you’d need to make in order to sustain yourself.
This will give you the confidence you need to push your idea to the limits and it will also help you to know what’s going to happen in the event of your business going south.
Earn while you Build
If you do want to start a small business, then you need to make sure that you don’t go ahead and quit your day job. Launching a start-up is a huge process so you need to build it in stages and make your transition gradually. This will help you to go from employee to entrepreneur and it will also help you to earn much more of a solid income.
If you want to get the best result out of your company, then you need to keep your 9-5 job and you also need to work during your off-hours. Sure, you might not feel as though you are devoting as much time to your business as you’d like, but at the end of the day it will really help you to get an influx of cash and it will also give you the chance to make your idea a success.
Speak about your Business
One of the main challenges that a lot of business owners face is that they just don’t know how to sell. Sure, it can be intimidating for you to try and share your business idea with the world. This is especially the case if you are completely new.
On the flip side, you need to be able to sell your idea because if you don’t look as though you believe in your idea then nobody else will. If you’re just not outgoing enough then you need to fake it until you make it. This will give you the highest chance of experiencing success and you may even find that you gain a lot of confidence as a result. When you run your own business, you are going to have to do things that make you feel uncomfortable but if you put the work in and if you network then you will soon find that you develop connections and this will make the whole process much easier.
Know your Legal Requirements
Starting a business is exciting, to say the least. Learning laws on the other hand, isn’t. That being said, you need to make sure that you understand the rules and regulations that come with running your own business. If you fail to meet the right government regulations then there’s a high chance that you will face some very steep penalties.
A lot of business owners just don’t know where to start here and that is completely understandable. If you want a starting point, then you need to have a quality accounting system. This will help you to document all of the income you have, right from the start so you can pay your tax properly. If you are in the US, then you will also need to register your business with the state – just be sure to properly follow the specific rules and regulations that are outlined. If you run into any trouble you can always hire an attorney or business formation service. As you hire workers and progress, you also need to make sure that you follow the right employment laws. If you are stuck here, then there are plenty of guides out there that can help you navigate the process.
Lastly, choosing the right structure will really have an impact on how many liabilities you have. If you decide to be a sole-trader then you won’t have to worry about meeting as many regulations, but at the same time, you will be liable if something does happen to go wrong within your business. A limited company, on the other hand, will have more legal responsibilities, but you won’t be held liable if your business goes into bankruptcy.
Balance Passion with Wisdom
Passion is easily one of the most important ingredients when it comes to business success. If you don’t have passion, then you won’t have the drive you need to constantly improve your business and you may even find that you give up way easier too. This is the last thing that you want, so make sure that you truly believe in your idea before you unleash it to the world. Do market research and also talk to any target customers so that they can help you to take the right direction. It also helps to talk with local experts to see if they can help you to launch your idea.
Ultimately, running a business is very similar to driving a car. Your passion is the gas, which pushes everything forward and your mind is the steering wheel, which keeps everything on track. If you are able to make these two things work in harmony, then there is absolutely no reason why you can’t go on to experience a very high level of success in the future. If you need some additional help with your idea, then hiring a business coach may be the way to go as this will give you the chance to avoid the mistakes that many entrepreneurs make.