Most people who have the desire to own their own business struggle with a very important question, “what business is best suited for me and my needs that will make the most money?”
A few questions you can ask yourself to help you decide are:
There are a few things you need to know before starting a business.
1- Having a skill or talent is not enough.
What I mean by this is that you also have to have knowledge on how to run a business. Knowing how to bake the best cake in the world will not make you the best pastry shop owner. You also need to know how to run a pastry shop. Running a business requires branding, marketing, pricing your products or services, logistics, etc…
2- If the only reason you are starting a business is because you are tired of working for someone else you will not succeed unless you prepare for the challenges of owning a business.
Working for someone you do not have to worry for many things such as taxes, property expenses, marketing, effects of economy on your business, competition, etc… You show up to work and follow your manager’s instructions. When you start your own business you have to manage your own time and complete all required tasks by yourself on a timely manner. In other words you have to wear several different hats.You can not afford to waste time and money.
3-If you want to have your business so you will have more free time for yourself and your family you need to take into consideration that to achieve this goal you have to spend more time working on your business for at least three years.
It takes an average of three years for small businesses to start being profitable. After your business takes off you can reduce your working hours by delegating tasks to competent trustworthy employees.
4- If you have a passion and a unique talent you should definitely consider starting your own business, however you need to make sure you have enough knowledge of running a business.
It is always a great idea to educate yourself by reading books about marketing, business ownership, listening to podcasts, attending webinars and seminars, as well as having a business coach who can help and advise you on how to start your business on the right track.
Always remember you should start your business for the right reasons, with the right expectations and enough knowledge. Do not shy away from asking for help. Making mistakes can be very costly when you are a business owner. Take calculated risks and surround yourself with knowledgeable and supportive people.
Starting a business is one of the most difficult yet exciting decisions one can make.
Before starting a business you need to know what you are getting
yourself into. It is a very important decision that can change the course of your life.
After deciding what type of business you want to start, you need to consider the following points:
1-Location of your business:
Not all businesses need a brick and mortar location. Your business can be a home based business, or a web-based business. Each one of the above mentioned type businesses have costs associated with their business location. If you are starting a business that needs a store front or an actual office then you need to calculate the cost of rent and utilities as well as some reserved money for repairs or accidentals.You also might need an insurance policy to cover your liability. If you are starting a web based business then you need to consider the costs of having an online business such as hosting costs, costs of creating a website, etc. If your business is a home based business then you need to calculate all the costs assassinated with the business. You might need to make some changes to your office to make it suitable to run your business, etc.
2- Costs of starting a new business:
Most of the time business owners miscalculate the cost for starting a new business. Some of the most common costs of starting a business are costs of forming a business, cost of licenses that you might need, cost of insurance, overhead, marketing which consumes most of the capital, manufacturing, your personal hourly cost, utilities, rent, building a website, hosting fees, training fees, etc.
3- Your support team:
Every business owner needs a support team. Your support team should include your spouse or parents, a mentor who understands the nature of your business, a business coach or consultant, a CPA or accountant, and a legal adviser. Your support team will help you when you are in need of emotional, legal or business support. Choose your support team with a great caution. A good mentor or a consultant can help you grow your business faster than you can imagine. Having a mentor, coach or a consultant will help you avoid many costly mistakes.
4-Your business goal:
You need to have a very clear goal for your business. You need to know where you want to see your business in one, three and five years. After knowing what your goal is you need to put a business plan as well as a strategic plan together as a road map on how to achieve your goal. A good mentor, coach or consultant can help you put these plans together.
Every successful business owner always has an exit strategy. An exit strategy is a plan on when and how to sell the business or get out of it on time. It should be a part of your plan and it needs to be revisited periodically to make the necessary changes based on the growth of the business.
For more information on how to start and sustain a successful business follow our blog or contact us.
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