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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 will have more free time, work at home, and have a flexible schedule. Unfortunately, you should avoid these myths. Majority of the time, starting a small business isn’t any of the things. Instead, it is extended hours, working at home might be a distraction, less flexibility, and there are many hats to juggle. It’s completely 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 off with your business idea!

Attitude is EVERYTHING. You must always keep a cheery attitude. Many things are going to happen through the lifecycle of the business, 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 when starting a business is money and reputation. You have to make sure you can stay afloat and have a means of financing when starting out. And reputation is also an obstacle because you don’t have a reputation or customers. Unless you start out with several customers, quite often you are getting started very alone.

WHAT YOU NEED?

VIABLE PRODUCT

You need to provide a product/service that people want to buy. Researching similar products/services is important to see what else is out there that is similar to your idea and then regulate how your product will be much better than the competition. It is also important to manage to bring experience to the desk. It is the experience you have that may make the company. Typically, you need to have a niche so that you can have a focused approach and decide which kind of company you want it to be. Lastly, it is advisable to consider when you can sell enough of your service or product to make a living. Will you be able to cover all of the expenses and salaries that include a business?

BUSINESS PLAN

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

Focus on an executive summary, that is a high-level description of what the business enterprise can do. Next, you need a business description that lays out the business in detail. Then, comes the marketplace analysis, who is likely to be your customer and who is your competition? Next, is organization management. Who is going to manage the business? Will you manage it yourself or are you going to hire someone from the exterior to handle your business? Quite often you are starting off managing the business yourself. Next, you need a sales strategy, what sort of sales strategy are you going to encompass? And lastly, you should include funding requirements and fiscal projections. Which kind of funding do you need to start the business and just how much do you project to create?

A written plan is critical. It is absolutely essential you write down the above home elevators paper.

There are plenty of business plan templates open to help. Even if you are an established business, you do not need anything complicated. Yet another resource is a easy roadmap. This breaks out calendar month by month projections for just two 2 years. What trade shows will you attend? How many people will you hire? Which kind of marketing campaigns will you run?

Last, goals are really 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 questions to ask are how much money will you need to remain afloat? Will you be taking a salary? Exactly what will your non-salary expenses be? Just how many people do you anticipate hiring the first year? Think about company benefits? Even if you are by yourself, you will require benefits and insurance. These are all questions you should think about.

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

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

A fourth option is a funding company. It is a viable option because they will often do 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 should pay off loans with interest and oftentimes it is not financially feasible to breakaway. If you are using a funding company, you intend to make sure you understand the agreement and know very well what it takes to step away from the funding company.