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When thinking about starting a business you want to consider “Why are you starting the business?” Often times someone decides to start a small business with the mindset they have more free time, home based, and also have a flexible schedule. Unfortunately, it is important to avoid these myths. Majority of the time, starting a business isn’t any of the things. Instead, it is extended hours, working at home can be a distraction, less flexibility, and there are lots of hats to juggle. It’s completely different then working for a company and it is vital that you keep all of this at heart when deciding if starting a business is right for you. If it is, then let’s dive into getting started with your business idea!

Attitude is EVERYTHING. You have to always keep a cheery attitude. A lot of things are going to happen during the lifecycle of the company, both bad and the good, and the most important thing is to keep a positive attitude.

BIGGEST OBSTACLES TO OVERCOME

Both biggest obstacles startups face whenever starting a business is money and reputation. You need to make sure you will be able to stay afloat and have a means of financing when getting started. And reputation is also an obstacle because you don’t possess a reputation or customers. If you don’t start out with a group of customers, usually you are getting started very alone.

WHAT YOU NEED?

VIABLE PRODUCT

You need to provide a product/service that people need it. Researching similar products/services is important to see what else is out there that is similar to your idea and then determine how your product will be much better than the competition. It is also important to manage to bring experience to the desk. It’s the experience you have that will make the company. Typically, you need to have a niche in order to have a focused approach and decide what type of company you want it to be. Lastly, you have to consider if you can sell enough of your product or service to make a living. Will you be able to cover all the expenses and salaries that come with a business?

BUSINESS PLAN

A business plan is absolutely essential. Exactly what is a business plan?

Focus on an executive summary, which is a high-level description of what the business can do. Next, you will need a business information that lays out the business in detail. Then, comes the market analysis, who is likely to be your customer and who is your rivals? Next, is organization management. Who’s going to manage the business? Are you going to manage it yourself or will you hire someone from the outside to handle your business? Most of the time you are starting off managing the business yourself. Next, you will need a sales strategy, which kind of sales strategy will you encompass? And lastly, you have to include funding requirements and fiscal projections. Which kind of funding should you start the business and how much do you project to create?

A written plan is critical. It really is absolutely essential you write down the above info on paper.

There are several business plan templates open to help. Even if you are an established business, you don’t need anything complicated. An additional resource is a uncomplicated roadmap. This breaks out month by month projections for just two 2 years. What trade shows will you attend? How many people will you hire? What sort of marketing campaigns do you want to run?

Last, goals are really important. It is advisable to set specific goals in your organization plan so you know where you are heading.

MEANS OF FINANCING

How will you finance your organization? Some of the key issues to ask are how much money will you need to stay afloat? Will you be taking a salary? What will your non-salary expenses be? . Just how many people do you plan on hiring the first year? Think about company benefits? Even if you are by yourself, you will need benefits and insurance. These are all questions you must think about.

Should you self-finance or remove a loan? Self-financing is often recommended for those who have enough money in the lender to float the business and your salary for per year or two. This program reduces the pressure. The final thing you want is pressure from creditors. Loan products will be difficult to procure. In the event that you manage to get a loan, you will have to personal guarantee and you may need collateral.

There is also the chance for a financial business lover, however, a financial business partner can often lead to meddling and pressure. In addition, it may cause you to run the business differently you then envisioned. Remember, you’re starting the business to place your own spin onto it!

A fourth option is a funding company. This is usually a viable option because they will most likely carry out your payroll and invoicing for you. Sometimes the funding company provides a basic ATS system as well that could help you start. The downside to a financing company is often it is hard to breakaway. You have to pay back loans with interest and in some cases it is not financially feasible to breakaway. If you use a funding company, you would like to be sure you understand the agreement and know very well what it takes to step away from the funding company.