When planning to start a business, there are many things to consider: some financial, some conceptual, and others just plain practical.
In the 80’s and 90’s we could count on a certain percentage of clients working as employees, transitioning to some form of business. The number of employees transitioning to business is much lower today. The reason is, running a business can be challenging.
One of the most challenging areas of owning a business is the balance between working in the business and working on the business. It’s a good idea to do some research early and build a habit of managing the business. So, spend some time researching your industry and business practices.
Here is my short list of things to think through. It is by no means exhaustive:
- What type of business – it could flow from personal talents and skills, a hobby, from sound research, from necessity, or a long-held dream.
- Calculating the costs – There are different reasons for wanting to start a business. Regardless of your driver, a business should be able to provide an acceptable level of income to meet your financial needs or at least have a reasonable prospect of doing so in short to medium term. If not, you need to give serious consideration to other options.
- Do I need a business plan? Yes, a business plan is a good opportunity to consider what variables are likely to impact your business ideas. It doesn’t have to be big and complicated. Some notes capturing your thoughts, a basic cash flow projection, and a simple marketing plan will be enough to get you started.
- What business processes are needed; what policies, procedures, and standards are required, privacy issues; what government regulations apply; what operation procedures are necessary; what cyber security procedures do I need?
- Your skills/talents can be a guide. Where do your talents lay? What are you not so good at doing?
- Who is your customer, and how are you going to find them, or how are they going to find you?
- Understand how your personality type can impact your decision-making.
- What can you learn from your competition?
- Can you delegate responsibility or duplicate processes?
- How will you grow your business?
- How will you exit your business?
- What cash flows can you expect?
- What cash reserves do you need?
- Do you need help, and whom do I ask for help
- What are the barriers to entry in your space, and what does that say about likely competition?
Our Wired for Success Business Startup Kit can help get your new business off to a strong start. Call today to find out how to get one. 07 32083888