The dream of owning a small business has become popular in recent years against working in a corporate environment. A great small business can start as an idea, but to transform it into reality requires action. Starting a business can seem overwhelming, but by breaking it down into smaller tasks, the task of starting a business seems a lot more achievable. Here are our key things to consider when starting a small business.
The key to a successful startup is the business plan. At this stage, a business plan is a high-level overview of the business. A basic business plan consists of a vision, mission, objectives, and overall strategies. Your vision sets out what will be the end result of your business. The mission on the other hand, will define why the company exists. Objectives will then be the roadmap and milestones that you will be required to reach in order to achieve your goals that will lead to the accomplishment of the mission and vision. Your overall strategy will then serve to help you achieve these objectives.
Budgeting is a key part of starting a business. If you’re self funding the business, you need to be realistic about figures. Burn rates tend to be higher than expected, so it is always important to allocate more than you expect.
Many that are starting out simply run their business as a sole proprietor, as it means less paperwork and up-front expenses. However, acting as a sole proprietor can put the owner at personal risk, so it may be wise to consult a legal consultant. Depending on what sort of business you are running, there may be regulations to be mindful of. You can always file for a business entity once the business model has proven itself to be viable.
A big mistake that makes taxes more complicated than it should be is the fact that some business owners do not keep their personal and business bank accounts separate. Most credit institutions or banks only need your filing paperwork, sole proprietor licensing information and an initial deposit.
A website is key regardless of whether your business will be brick or mortar or an e-commerce business. Popular domain sites such as GoDaddy will allow you to search and purchase a domain, and even set up WordPress websites. Check out these Godaddy website builder reviews to decide if it is the right option for you.
If you’re starting an online business, you can create an online shopping cart and store front with Shopify. Alternatively, you can integrate a shopping cart and management tool into your website by hiring a freelancer to do it for you, although Shopify offers a simple, easy to learn experience.
Sales can be gained in various ways. Whilst we won’t delve into the various methods of achieving sales, one way to drive exposure to your business and website is via advertising. Drive traffic to your website through Facebook Ads with capped budgets, or use Google Adwords to increase exposure to your business – used correctly, these can be cost effective methods of gaining exposure.