If you’re an entrepreneur who is ready to start your own business, it’s important that you know where to begin and what to be prepared for. Whether you’ve had successful ventures before, or you’re about to dive into the business world for the first time, turning your idea into a profitable company will take hard work, patience, and perseverance.
Starting your own business is an exciting and desirable pathway that has become more and more accessible in recent years. However, it is a tough road to take and if you aren’t fully prepared for the trials and risks involved then you could end up landing yourself in hot water..
4 things you need to prepare for to start your own business
Here are four things you need to be prepared for when starting your own business
Inflating costs
Like it or not, every big dream starts with a cost. From the outset to start your own business, you’re going to have to plunder your savings to come up with the cash to get your business rolling. From sourcing materials, researching and marketing, to simply supporting yourself; you’re going to need cash flow.
Even if your initial costs are low, as production increases and your business grows, the price of running things is going to inflate as well, and there’s a lot of hidden expenses you may not have considered.
Some of the biggest companies in the world started in a bedroom or garage. But if you ever want to be able to compete with the likes of Facebook or Amazon, you’re going to have to eventually find a place to expand. You may need to fork out for office space or to rent a shop front on the high street, or even buy land and hire civil engineering companies to build a brand-new home for your business.
Getting business insurance, no matter what it is you do, is always a wise move. Sod’s law dictates that if something can go wrong, it will, so it’s best to be prepared and have a safety net to start your own business, . Public liability, cyber liability, and workers compensation might all need to be considered based on the service you provide, so it’s best to do your research and find out what you need before setting off.
In the US, most businesses will need to get a general business licence and depending on what type of goods you plan to sell you may need to obtain said business license on federal, state and/or local levels. Therefore, it’s best to get clued up to operate legally and avoid potentially costly fines. Registering your business with the state is a good first step to find out what you will and won’t need.
A trademark protects your name, products, and brand from being stolen by other traders or businesses. It is a badge of exclusivity for your business and essential if you want to protect yourself from copycats. There are various types of Trademark you may need to consider when entering the market and each of them varies in price, so it’s good to get your research done in advance to start your own business, and adjust your budget accordingly.
Also, it’s important to note that the trademark law is different on the state and federal levels. Each state has it’s own trademark laws that apply for only that location, and federal laws are carry much more legal weight and apply to the USA as a whole. That’s why if you for example live in Orange County, you should consult an Orange County trademark lawyer if you have any questions.
Networking
You may view yourself as a lone wolf, a self-starter ready to conquer the world of business all by themselves. Unfortunately, this kind of attitude is only going to get you so far. Networking is a vital skill and should be a major part of any business plan, so you need to be prepared to engage with other business owners both offline and on. A solid network can:
A major advantage of networking is the contacts, referrals and lead generation that it can bring to your business.
For example, if your company specialises in digital marketing and you are in contact with a web developer from a local business event, their clients could easily become yours. They may make a website for a client who then wants somebody to help drive traffic to it and suddenly you’re in the loop.
A solid base of close connections can also be useful to start your own business, if your business ever runs into trouble. Say you need a loan during a quiet month, or you have been shipped out of your office and need somewhere to temporarily keep things running, if you have built up a network of supportive peers then you’ll always have someone to watch your back in times of need.
Meeting other entrepreneurs can provide invaluable insight from people that have already been through what you are going through. Their experience and knowledge, gained from their successes and failures, could guide you away from pitfalls or accelerate growth. Saving you countless hours of trial and error on your journey.
Making sacrifices.
If you want to become an entrepreneur, then you are going to have to make sacrifices. Unfortunately, that’s just the way it is. Your time and your money are both limited resources, and to succeed you are going to have to give up a significant chunk of both.
Behind every success story, there is blood sweat and tears behind the scenes. You may be staying up till 4 am answering emails or preparing orders for delivery. You may have to juggle a part- or full-time job on top of working on your business in the evening. Perhaps you can’t meet up with friends one weekend because there is just too much to get done, or you have to meet up with potential business partners or investor, or perhaps you just don’t currently have the funds for a wild night out.
Starting a business is a full-time commitment, from day to day running, to networking and taking the time to learn through online or offline courses, and significant concessions will have to be made to keep things going. However, it is important not to get burnt out, and finding the right balance can be challenging, but it is a challenge you are going to have to be prepared to tackle head-on.
Failure
It is a hard pill to swallow, but only 80% of businesses survive the first year, and only half make it past the five-year mark. Even the most successful companies in the world sometimes fail to keep up with an evolving market or invest millions into services or products that simply don’t take off.
From the beginning, you may lack certain privileges (money, contacts, connections) to even get things off the ground.
While, on the other hand, you may do everything right; you might have an incredible product that takes the market by storm. But, even then, you may struggle to keep up with changing consumer behaviours or investor priorities.
Therefore, you need to prepare for the fact that you might fail. Build an emergency fund, work on strategies to minimise common mistakes, and most importantly prepare yourself mentally. Know that each failure will allow you to come back smarter and stronger. So that, if the worst comes to worst and things start to fall apart, the resulting impact will be a ripple rather than a Tsunami.
