Starting a Business: You’ve probably read countless articles about it and believe you’re finally ready to take that big step. A word of caution though: once you step into the entrepreneurial waters, you’ll quickly realize that nothing has really prepared you for it.
There’s so much more to it than just a good idea. It takes a lot of research and planning to prepare for starting a business. In this article, we help you save that precious time by bringing you 4 things you need to know before starting a business.
One of the most important things when starting a business is to familiarize yourself with the laws and regulations that affect you. What kind of business permit or license will you have to obtain? What are the legal requirements for starting your business? How much will you need to pay in taxes?
Compliance with the law is essential because you don’t want a technicality holding you back once you embark on this journey. There is a lot to consider from filing tax returns and paying your staff to protecting your business with insurance. If you can’t figure out all of these things on your own, seek help from a reputable accounting firm.
A professional can guide you through these laws and regulations and help you figure out if you’re ready to start a business. Additionally, a skilled accountant will be a great ally later on in helping you manage your finances and not over-paying on taxes, etc.
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Before you spend all your money on developing a product, have you researched the market? Is there a demand for such a product or service? What about the competitors?
This might be hard to hear but there is a chance your product isn’t so great or needed so your first step should be to find out whether there is a market for it.
Countless new ideas and products are introduced every week, month, year. But how many businesses actually succeed in surviving the first few years? About 80% of businesses survive the first year while only half of all businesses make it to the fifth year.
You’ll need all the information you can gather so that you can make small adjustments to your product/service accordingly. Thorough market research will provide answers to the above-mentioned questions and give you an insight into whether it’s worth spending more time on your idea or not.
Research your competition carefully. But don’t get discouraged if you discover that there are many other businesses with similar ideas. This doesn’t mean that you can’t be in the same business too. If the market is thriving, surely there is a place for one more great product.
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Financial Literacy: Teaching Kids How To Buy A Home
When starting a new business, most people give up a lot to finance the idea. Many get into debt, spend too much too soon and showcasing poor money management skills.
This matter also requires good research. You need to know what to spend on and what can wait until your business grows and brings profit. It may be tempting to get your new office decorated, purchase some new equipment, and software, but don’t rush this.
Instead, think about the necessities, what your business needs in the beginning. Make a distinction between what you must have and what would be nice to have.
If you hurry up and spend all your startup money on fancy equipment and unnecessary things, you will find yourself in a pickle when a real need emerges and you can’t pay for it.
Create a list of the things your company needs and stick to it. Some business expenses may seem small but they add up and sooner rather than later, you will start wondering where your money went.
Stick to the list of necessities until you start earning enough to spend on other things.
While it’s usually liberating to be able to quit your 9 to 5 job and be your own boss instead, there’s more to entrepreneurship than that. Starting a business requires sleepless nights, working day and night, up to 80 hours per week. From the moment you wake up to bedtime, Monday through Sunday, your business will require your constant attention. This means it will consume most of your time. For years.
Can you stay committed to your goal? Are you currently in a place in life that allows you to dedicate all your time to this business? At least for the first couple of years until you get on your feet and can afford to have a social life again.
Sacrificing your personal life might be fine for some people but for others, family time and catching up with friends is something they are not willing to give up.
Before you venture into this business, think about long-term implications. If this isn’t something you can see yourself doing in the future and you’re not willing to sacrifice your personal life, perhaps you’re not ready to start a business after all.
Michael has been working in marketing for almost a decade and has worked with a huge range of clients, which has made him knowledgeable on many different subjects. He has recently rediscovered a passion for writing and hopes to make it a daily habit. You can read more of Michael’s work at Qeedle.
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