The idea of starting your own business could initially fill you with much excitement. All of that control and flexibility! Except that, well, your progress in setting up that business and taking it off the ground could come juddering to a halt if you fail to research the following things first.
Table of Contents
Start Up Capital
Obviously working out your finances is a key component when starting a new business. Do not underestimate how much capital it may take to start a venture. Do you have savings to live on until the business can fund you? Can you approach family or friends for a loan? Have you a financial plan in place that maps out the first 6 months of your business? These are all good questions to consider. If you want to go down a more structured route there are a number of online business loan providers, if you are UK based loan company Iwoca recently put together a post entitled ‘10 best business loans in the UK‘ that highlights the current best UK loan providers.
Whether you have the necessary time and money
If you are considering treating that business as a side project, you should probably back out now. Adam Robinson, who heads the hiring platform provider Hireology, warns in a Business News Daily article that the decision will “take more time, more effort and more capital than you thought.”
Opportunities which inspire your passion
If there is enough time and money for you to free up for the business, keep an eye out for opportunities – but only pounce on those which genuinely excite you. After all, passion could help keep you going if a business project falters.
Available names for your company
While it’s ultimately your decision what you call your business, your hand could be forced one way or another if your preferred name is already taken by another company.
The structure for your business
There are various structures from which you can choose for your company. The choice you make will affect matters like what paperwork is necessary to complete, what taxes are payable and the implications if you lose money, as The Guardian explains.
Your target market
Your business won’t be making money unless people buy what your company offers. For this reason, don’t skip researching who would be willing to purchase from you and what they need.
The market pricing for what you will offer
Once you know what you will make available and to what people, you should discern how to price your firm’s offerings. In this task, you can refer to the market rate – in other words, the pricing for which similar businesses have opted.
Potential places to work
Without a suitable space in which you can work, your productivity could be hampered. The ideal setting would give you a lot of space and not a lot of distractions.
Work equipment you will need
Even if you will work from home, you might still need to buy a new computer and phone. A printer might be necessary, too. Before starting the business, list all of the equipment it will require.
Ways of marketing the business
However good your business is, you can’t expect it to financially flourish if you don’t get the word out about its offerings. You might stick with just a Facebook page as your company’s online presence, while print marketing methods – like distributing cards – are an option, too.
Your insurance requirements
Some forms of insurance might be legal necessities in your jurisdiction; other insurance products might simply be recommended.
A specialist broker could be a good source of business insurance quotes. In the UK, for example, Be Wiser Business Insurance can provide a range of cover, including that for liability and property.
About Carson Derrow
