Plan to start a business in 2019, but do not know how and even where to start? This article describes the biggest hurdles you need to overcome, what you need to start your business and what to do after the first year!
THE MYTH OF SETTING UP A BUSINESS
When you think about starting a business, you should think about the question “Why do you start a business?” Unfortunately, these myths are important to avoid. In most cases, starting a business is not one of these things. Instead it’s long hours, working from home can be distracting, less flexibility, and there are plenty of hats to be manipulated. This is completely different from working in a business, and it’s important to keep in mind when deciding whether starting a business is right for you. If so, let’s start implementing your business idea!
Attitude is everything. You should always have a fun attitude. During the life cycle of the business will happen a lot of things, both good and bad, and most importantly – to have a positive attitude.
THE BIGGEST OBSTACLES TO OVERCOME
The two biggest obstacles that start-ups face when starting a business are money and reputation. You need to make sure you can survive and have funding when you are just starting out. And reputation is also an obstacle because you don’t have a reputation or customers. If you don’t start with a group of clients, you usually start a very single.
What do you want?
You have to provide the product/service that people want to buy. Researching similar products/services is important to see what is similar to your idea and then determine how far your product will outperform the competition. It is also important to be able to share your experiences. It is your experience that will do business. Typically, you need a niche so you can focus and decide what kind of business you need. Finally, you need to ask yourself whether you will be able to sell enough of your goods or services to make a living. Can you cover all business-related expenses and salaries?
A business plan is absolutely necessary. What is a business plan?
Start with a summary, a high-level description of what the company is going to do. Then you need a business description that details the business. Next is the analysis of the market: who will be your buyer and who is your competitor? The next one is organizational management. Who will run the business? Are you going to manage it yourself or are you going to hire someone from outside to take care of your business? Usually you start doing business on your own. Then you need a sales strategy. What sales strategy are you going to include? Finally, you need to specify funding requirements and financial forecasts. What kind of funding do you need to start your business and how much do you expect to earn?
The written plan is very important. You must write down the above information on paper.
There are a lot of business plan templates available to help you. Even if you have a well-established business, you don’t need anything special. Additional assistance is a simple roadmap. This happens month after month for two years. What fairs are you going to go to? How many people are you going to hire? What marketing campaigns are you going to run?
Finally, goals are extremely important. You need to set specific goals in your business plan so you know where you want to go.
How are you going to finance your business? Here are some of the most important questions that are worth asking yourself: how much money do you need to stay afloat? Are you going to take your salary? What are your non-wage expenses? How many people do you plan to hire in the first year? What about business advantages? Even if you’re single, you’ll need benefits and insurance. These are all issues that need to be addressed.
Do you need to finance yourself or take out a loan? Self-financing is often recommended if you have enough money in the bank to keep your business and your salary afloat for a year or two. This option reduces the pressure. The last thing you need is pressure from the lenders. Loans will be difficult to obtain. If you can get a loan, you have a personal deposit and you need a deposit.
There is also an option for a financial business partner, but a financial business partner can often lead to intervention and pressure. It can also make you do business differently than you imagined. Don’t forget to start a business to give it an individual character!
The fourth option is a financial company. This is a viable option as they will often take care of your salary and billing for you. Sometimes a financial company also provides a basic TTY system to help you get started. The flip side of a financial company is often that it is difficult to get away from it. You have to repay the loan with interest, and sometimes it is impossible to get away from it financially. If you use the services of a financial company, you should be sure that you understand the essence of the transaction and what it takes to get away from the financial company.
Some additional funding options include family, grants for small businesses and crowdfunding/internet. However, whether you really decide whether this option is right for you or not. Grants for small businesses are often difficult to obtain and it is a long process. Crowdfunding gives you small amounts of money from a large number of people. This is an unusual option, but it can work.
How much do you have to pay yourself? It depends on the industry, but your rookie salary is usually between $34,000 and $75,000. You should also be willing to do nothing for a few years! It’s important to prepare for that. You don’t want to go into debt.
Profit for the first year. Very few companies make a profit in the first year. It is extremely important not to get upset when this happens and continue to fight. As a rule, it takes two to three years to receive the benefit.
Make sure you create a company name that appeals to you and reflects the “appearance” of the business. Don’t give your name, leave it to law firms and accountants! Sometimes you look small. You always want to look taller than you really are. Finally, keep in mind that a name that starts with the letter “A” appears at the top of the lists.
Then you need to start a business. You can’t just start selling things! It is good practice to take a book and read about different types of business. You really need to understand how it works if you’re doing business.
You need an EIN (employer identification number). Next you need to decide which business you want to start. There are C Corporations, Inc. This means that if you start a business in C, no one will be able to sue you in person. They should sue the company. In addition, you specify taxes separately from personal taxes. This is a great option because it allows you to separate personal and business issues. This does not apply to Corporations S. Your personal and professional tax returns are the same. One advantage should be given: if you want to sell a business, there are often tax breaks. When you open a C corporation, it is very difficult and expensive to build a S corporation. In addition, there are companies called limited liability companies ( OO). You can also create a non-profit organization, but you need to be careful with that and make sure you meet the requirements.
It is best to consult with your lawyer and accountant to find out which business is best for you. Once you have opened your business, you need to get a business license, register in the state and open a bank account.
MARKETING FROM YOUR HEADQUARTERS
Marketing your head office is as important as anything else. Remote office is a good solution because it expresses professionalism. In the first year you will spend a lot of time on THE RIGHT that you are a real business. One of the best ways to prove it is to open an office. It prevents a dog from barking in the background when she talks on the phone. It also helps you focus. There’s no temptation to quit your underwear! The office is also a great place to meet people. You don’t want to be in a coffee shop all the time. Especially if you’re trying to hire people today, you want to be a professional.