So, you are about to start a business? Wow! That is so brave and exciting. Starting a business is such an admirable thing for anyone to do. It does not matter if you are fifty or just starting high school if you apply yourself and figures out what you are going to do and how you are going to do it you will be a success in no time
  • We are going to break down some brilliant tips that any budding entrepreneur should know when they are first starting a business.

Where is the money coming from to start the business?

Acquiring the money to start your business can be tricky. On the one hand, you blow through a small amount of money you saved and find yourself short on necessary things. Worse you find yourself in mountains of debt due to all the loans you have now taken out. Businesses take time to start generating pure profits and so make an effort to avoid exuberant business loans and acquire as much starting capital as possible.

What is your plan… What is your Business Plan?

It is so great that you are passionate about what you are doing. Being passionate and invested in your brand, business and product or service is so vital for you to strive to make it a success. Now it is time to figure out how to get others as invested as you are! People love enthusiasm but that is not enough to sell something. Business plans are necessary for business owners in order to know how you will not only start the business but how you will make it successful.

  • A good business plan is not determined by length or detail it is more about the content. You need to cover things like break-even analysis, profit-loss forecast, cash-flow analysis and more. 
  • Want to know more on the ins and outs of the almighty business plan?
  • Business plans are essential for all businesses; big and small, they allow you, the entrepreneur, the chance to experiment with strategies on paper before actually setting things in motion. 

How are you going to make money?

Being the boss has its benefits but sometimes you need to answer the important questions nobody else can, money. You are not doing this for fun, a business means needing money to stay in operation. Most businesses have employees who are depending on you to make the decisions that keep the business making money. With the goal being clear in your mind it is time to figure out how to achieve that. Products and services vs the expenses the business has;
  • Rent
  • Goods 
  • Employee Compensation

What will you need to make a month to breakeven? Then price the goods and/or services accordingly. This is known as a break-even analysis. Click here to find out about break-even analysis.

Protecting Yourself

Small businesses are generally owned by a single individual or a combination of two or more people forming a partnership. Each type is easy to form but the tricky part comes through in things such as liability for things like business debt and judgments. If the business does not make a profit and begins to fall behind on payments, you are eventually forced to close the business and liquidate. Leftover debt is then acquired by Creditors who target the personal assets of the business owner or owners. They will target anything they can to get the money they need to settle the business's debt. Look into things such as forming a Corporation or LLC, as this business structure shields owners from personal liability which a Sole Prod does not. Also, invest in insurance however know it only slightly reduces liability. For more on the different types of businesses.

Don’t Jump the Gun

In other words, start small. We all want to be successful and enjoy the fruits of our labour but going too fast too quickly can yield negative results. Starting small means, you are working towards your goals without losing focus. It also means you can make decisions without clouded judgement. Starting small means focusing on gradual and planned growth instead of out of control growth that you can’t keep up with.

There you go, some of the basics you need to know when beginning your journey as an entrepreneur. Click here to get further details on starting a new business!