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

Attitude is EVERYTHING. You must always keep a cheery attitude. Many things are going to happen during the lifecycle of the business, both bad and the good, and what is important is to keep a positive attitude .

BIGGEST OBSTACLES TO OVERCOME

The two biggest obstacles startups face whenever starting a business is money and reputation. You have to make sure you have the ability to stay afloat and have a way of financing when starting out. And reputation can be an obstacle because you don’t have a reputation or customers. If you don’t start out with a group of customers, more often than not you are getting started very alone.

WHAT YOU NEED?

VIABLE PRODUCT

You need to give a product/service that people need it. Researching similar products/services is essential to see what else is out there that is similar to your idea and then regulate how your product will be better than the competition. It is also important to manage to bring experience to the table. It’s the experience you have that may make the company. Typically, you would like to have a niche so you can take a focused approach and decide what type of company you want it to be. Lastly, you must consider when you can sell enough of your service or product 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 explanation that lays out the business enterprise in detail. Then, comes the marketplace analysis, who is likely to be your customer and who is your rivals? Next, is organization management. Who’s going to manage the business enterprise? Will you manage it yourself or are you going to hire someone from the outside to handle your business? Quite often you are starting off managing the business enterprise yourself. Next, you need a sales strategy, which kind of sales strategy will you encompass? And lastly, you must include funding requirements and financial projections. Which kind of funding should you start the business and just how much do you project to make?

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

There are several business plan templates available to help. Even if you are an established business, you don’t need anything complicated. Yet another resource is a simple 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 will you run?

Last, goals are extremely important. You have to set specific goals in your business plan so you know what your location is heading.

MEANS OF FINANCING

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

Should you self-finance or remove a loan? Self-financing is often recommended should you have enough money in the lender to float the business and your salary for per year or two. This option reduces the pressure. The final thing you need is pressure from creditors. Loans will be difficult to procure. If you manage to get yourself a loan, you will have to personal guarantee and you will need collateral.

There is also the possibility for a financial business spouse, however, a financial business mate can often result in meddling and pressure. In addition, it may cause you to run the business differently you then envisioned. Remember, you’re starting the business to put your own spin on it!

A fourth option is really a funding company. That is a viable option because they will most likely carry out your payroll and invoicing for you. Sometimes the funding company will provide a basic ATS system aswell that could help you start. The downside to a financing company is often it is hard to breakaway. You must pay off loans with interest and oftentimes it is not financially feasible to breakaway. If you use a funding company, you need to make sure you understand the agreement and know very well what it takes to step away from the funding company.