Are you ready to give up the rat race for good? Starting your own business puts you in control and enables you to earn money on your own terms. But there’s more to it than simply opening your doors and hoping for the best. Here’s what you need to know.
Have you done your market research?
One of the great things about starting your own business is that it enables you to pursue your own personal passions. You can sell products or services that genuinely interest you, however, it can also make you a little biased. Just because you love something or think it’s a great idea doesn’t mean everyone else will- and before opening the doors to your business you absolutely have to do your market research. If you sell food and drink, this could involve taste tests and comparisons between your recipes. If you sell products, it could involve extensive product testing, and letting testers use a prototype for a number of weeks to highlight any issues before it goes into mass production. If you sell services, you could let people or companies use them on a beta basis and again get as much feedback as you can. You might think what you’re selling is fantastic, but it’s not you that’s going to be buying it. Find out what the public thinks, it could highlight issues you weren’t aware of, and that you can put right before opening your doors.
Can you afford everything that you need?
There are so many overhead costs to take into consideration when you first start a business. From hiring or buying equipment to securing business premises, buying materials, office or shop supplies and much more. It’s important that you’re not under estimating costs, go through everything with a fine tooth comb to ensure nothing is being missed off your list. A good contingency fund will help to pick up any unexpected costs that weren’t budgeted for, so give yourself a reasonable contingency fund to fall back on just in case. It can be worth having a line of credit available with the bank for emergencies, or access to a business cash advance.
Do you have good companies to outsource to?
In the beginning, you might not necessarily have the funds, time or knowledge to open every department that your business needs to run. In this case, outsourcing is the answer. Single tasks or entire departments can be outsourced to a professional, third party company who is experienced and has everything in place already (from the staff to the equipment) to get these processes done. If you plan on outsourcing, you need to find good companies who are able to tackle the jobs you want doing. Again, do your research here and have plans in place ahead of time, so once you open your doors you can start being productive right away.
What insurances do you need?
Finally, this is something that’s easy to overlook as a naive new entrepreneur. But get this wrong and you could end up seriously out of pocket if a claim of any kind is made against you. Find out what insurances you need to run a business in your industry, and ensure you’re covered just in case something goes wrong.
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