Here are 9 things you should do when you start your business.
· Research the competition
Determining with whom you will compete and how you will differentiate yourself can be critical. If you cannot determine that you have competition it may mean, there is no demand for your product or service. Researching the strengths and weaknesses of your competition is a critical task before you open your doors. Savvy investors/lenders will also ask you to discuss your competition and your “niche”.
· Learn how to market your business
You may have a great/unique product or service but if you don’t have a way to reach your target customers they won’t know about your offerings. A business owner can’t just focus on what you create; you need to also manage the other parts of your enterprise to be successful, which includes advertising and marketing. Performing research on where and how to market your product, including social media and more traditional advertising. Seeking outside assistance could be beneficial as well.
· Develop a business plan
A business plan is essential when deciding to start a business. It will help you define what your product or service is, how your firm is different (a/k/a, your niche), the amount of funding needed and when you anticipate breaking-even and when you forecast becoming profitable. There is a plethora of plans available online, and a plan should be a living document that guides you throughout the life of the enterprise.
· Have financing in place
The cost associated with starting a business can vary widely, but at some point in time you will likely need cash, either your own savings, or externally generated funds via investors and/or lenders. Getting the right amount of funding structured in a way that matches your proposed repayment. Financing can help with operating, and capital funding needs, including rent or raw materials, and also can help you hire needed personnel. There is a wide range of lending sources as well as crowdfunding and online funding available. Banks are hesitant to lend you money if you don’t have your own money involved in your business.
· Don’t rely too much on debt
Be sure that you have a well-developed plan for repaying the debt obtained to start the business and stick to the plan. Be sure to borrow the right amount and use it according to your business plan. Also, be sure that the repayment of the debt matches the cash flow you generate. If you don’t do this, you could doom your enterprise before you succeed.
· Choose the wrong bank
Your bank is your financial partner and developing a good relationship with them that will enable you to grow your business is critical. Be sure you research your banking options to find the right bank for you. Just like small businesses, banks have their own “niche”, as do the individuals that work for these institutions. Talk to other small business owners and ask them where they bank and find out the strengths and weaknesses of each bank in your area. Also investigate online banks to find out if they can provide the services you need. Given the expansion of online sales and payment portals, investigate these options as well.
· Learn to be flexible
Flexibility (a.k.a. the ability to “pivot”) is key to help small businesses succeed. Think about how small businesses had to adjust overnight as the pandemic closed storefronts nationwide. A lot of businesses closed, but others found a way to pivot and remain in operation. If you find you cannot adjust your business when the situation requires it, then you may need to rethink your plans to open your business.
· Know your weaknesses
You may be an excellent salesperson or a product innovator, but you cannot be an expert at all aspects of running a small business. The challenge in some cases is for the entrepreneur to recognize their weaknesses and find ways to address them. This could be bringing on key personnel or a partner that provides some of these missing management elements. Also, bringing on outside/contract help could be of benefit. An honest assessment of your personal strengths and weaknesses before starting your business could be very beneficial to help ensure viability of the enterprise
· Develop social media
A thoughtful, well-developed marketing plan in a post-pandemic business plan must include a social media presence to improve the chance of being successful. At the very least, a good website is an essential part of the larger marketing plan. Also, the inclusion of a social media presence on platforms such as Facebook, etc., is essential.
The coming year could provide both challenges and opportunities for budding entrepreneurs that do their research prior to starting their business. Gone are the days where you could open your doors and then hope you survive as you “live” your business sans a plan. As the adage says “those who fail to plan, plan to fail” will be especially noteworthy in 2023.
If you need any advice, please contact us via email or stop into our office. We have so many wonderful stories of businesses that started up and became successful because they received our help.
If you’re ready to start your business, we are ready to help.