You’ve got the itch. A business idea that you’ve been dreaming about for ages. A potential partnership that you’re toying with in the back of your mind. If you decide to work for yourself, it’s big a leap of faith. However, there are countless guides to help.
Running your own business is an American tradition. Here are a few tips.
1. Research
Before you quit your day job and invest your savings in your own business, do your research. Make sure you’re really making the right decision. Let’s say you plan on opening a yoga studio. How many studios are in your city? How much do they charge? What are their classes like? Unless you have a clear idea of what the competition is, it’s going to be very hard to be successful.
You need to know everything about your industry. Turn yourself into an expert.
2. Organize your finances
When you’re starting your business, money is probably going to be tight. You may even have to take on debt. However, if you’re smart about it, you can use the money to help your growth. You’ll end up receiving more than you spent.
That’s only possible if you keep a very close eye on your finances. Every dollar going in and out matters. If you’re not sure if you can handle it on your own, hire an accountant. At the very least, use accounting software.
3. Make a plan
Your business plan is everything. If you don’t have a clear idea of what you’re doing and what you’re hoping to achieve, it’s going to be impossible to move forward. Businesses don’t pop up organically. You have to guide them.
Your business plan should be formally written down. It’ll help if you ever have to speak to investors. It doesn’t need to follow a strict format, although that may help.
4. File
Once you know what your business to be, it’s time to file your business license. It’s the only way to legally operate your business. The rules differ by location. The publication requirement in NY, for example, is very strict. Generally, you have to pay at least $200 if you’re starting an LLC. Make sure you look up the regulations in the area. You should have your business license ready before you open up shop. In some states, you can do everything you need online.
5. Choose a location
Where is your business going to be? In 2019, it’s possible that your entire business will be virtual. You’ll be able to save money on rent and other costs associated with a physical location. However, this obviously won’t work for some businesses. If you need an actual storefront, finding the right spot is critical.
You have to think about your budget, but you also have to think about your business. Don’t set up a store that’s far away from your customers. For example, if you sell very expensive clothing, you need to do so in an area with a high median income.
6. Hire a team
You have a lot of options when you’re just starting out. You can hire a team, or you can work on your own. The best decision depends entirely on your business needs. If it’s possible to skip hiring people, it’s probably a good idea at the beginning. You’ll save money and you’ll be able to teach someone later one when you know all the ropes. However, some businesses need employees to thrive.
If you are going to hire staff, be very careful about who you choose.
7. Promote
Your business can’t succeed if you’re customers can’t find you. When your store is about to open, it’s time to start advertising. Put up billboards, mail out flyers, pay for targeted Facebook ads. Do whatever you need to do to let people know you exist. Your marketing budget may be very small at first. If that’s the case, you’ll have to get creative. You can’t avoid marketing.
To get people interested, you can try offering deals at first. It gets people in the door and if you have a good product, they’ll remember you and come back for more.
Starting a business is a monumental project but it’s absolutely worth it. You can learn something even in the failure of a business. Going to work for yourself is a privilege that many people desire. It represents freedom. When you stop working for other people, you control your future.
