Starting your own business can be a very rewarding thing to do. Freeing yourself from the tedium of a 9 to 5 job and being able to be your own boss and make your own decisions can be liberating. It can, however, be a very challenging time, especially in the beginning.
You want to do everything you can to lay a good foundation, but it can be confusing knowing what to do first. To help you with your venture here are the most important steps you need to take.
Decide on Your Business Direction
There are so many different things you can do if you want to run your own business. It can sometimes be challenging to know which direction to take. The important thing is to choose something you’re passionate about. It should also suit your personality.
There’s little point in running a small coffee shop or store if you’re not too confident engaging with different people. Think about the skills you have and how you can utilize them or look for an enterprise that fills a gap in the market.
Decide on Your Business Direction
This is an essential step for a startup, and it helps you get a better understanding of various aspects of running a small business. These include the structure of the industry you’ll be working in, your competitors and what finance is required for starting your business. A business plan is also essential if you’re planning to make any loan applications.
Look for Financing
Whether you need to look for financing depends on your personal circumstances and the type of business you’ll be running. You will have to invest in your business however, whatever type it is. A retail store, for example, could require several thousand dollars whereas a writing business might only need a few hundred dollars.
There are a range of different options. For example, you can look for interested investors or lenders. For investors, you’ll need to make a presentation in order to get your idea across.
Investors come in all shapes and sizes, but angel investors are often a good option because they’ll be more interested in a small business. Venture capitalists, on the other hand, tend to invest in high-growth companies only.
Other sources of funding include crowdfunding, bootstrapping, asking friends and family or operating your new business alongside your current job until it’s become established.
Find a Name for Your Business
The business world is a very competitive one and you have to do everything you can to stand out from the competition. One way is to choose the right business name. It can be seen as one of the reasons a customer would want to hire or buy from you and helps build a brand for your company.
Think about the message you want to portray through your business name. How do you want people to feel when they see your name? Have you got any competitors and what names have they chosen? Do you want a short or a long name? These are just a few of the questions you need to ask yourself.
Choose a Structure and Obtain Licenses and Permits
A number of things relating to your business are going to depend on its structure. You can choose to operate as a sole proprietor, a corporation or a limited company. What you decide will affect your business liability, the taxes you pay and how easy it is to obtain funding.
There is also certain paperwork you need to obtain, and this also depends on your business structure. Licenses and permits are an essential part of running your own business and requirements differ depending on which country you live in.
Protect Your Company and Create an Accounting System
There are certain risks involved with running a business, and it’s your responsibility to manage them correctly. One important part of that is to make sure you’ve got the right business insurance. It should protect your company should there be a disaster, someone is injured or in the case of litigation.
Another aspect of running a business is the accounting and bookkeeping aspect. If you’re not a numbers person, you don’t need to worry as there’s plenty of help available. There are apps and software that can make the work easier. There’s also the option of outsourcing this aspect of your business.
Running your own business is an exciting thing to do. There are lots of things you need to consider, and you have to be prepared to work hard. It is, however, very rewarding and well worth the effort.