Many people dream of starting their own businesses. Entrepreneurship has many fulfilling rewards. Many people would love to be their own boss and to take control of their workplace, bringing it as much success as possible in today’s competitive environment. However, there are many pitfalls along the way to success. Scott Smith, an entrepreneur from Saratoga Springs, New York, explains the process of starting a new business and offers tips that all entrepreneurs can use.
1. Know What You Offer
One of the most important steps toward building a new business is deciding what sets your business apart from the local community. If you are just another dry cleaner, for example, you may have trouble holding onto customers. Incorporate new features in your business, like same-day service or pickup and delivery, and you will make your business more attractive to customers.
2. Know Your Competition
Another crucial step to take in starting your own business is to get to know your competition. Take the time to study these businesses. Visit and patronize them all if you can. This will give you a good idea of where to start in making your business more competitive than theirs. Look at their marketing materials and decide what you could do better.
3. Know Your Reasons for Starting a Business
Some people go into business for themselves with the wrong attitude. When you are starting a business, you can’t expect that you will work less than you did before. Running a business is truly a 24/7 operation, and you will have to dedicate yourself completely to your company. Your hours will be long and there may be several months or even years before you see a profit. Many new businesses fail because their owners did not recognize what kind of commitment they were making, says Scott Smith.
4. Write a Business Plan
The next step is to write a complete business plan. You will need to describe what your business does, how it will make money, and how it will survive in the coming months and years. Contact your local office of the Small Business Administration if you need assistance.
In your business plan, you will need to make a case for yourself in terms of receiving funding. Lenders often insist that you have a solid business plan before they will fund your business.
5. Be Prepared for Expenses
When you are starting a new business, it is a good idea to keep your day job until the business is established. If you have a secondary source of income, you will have more freedom to take risks and to invest in your business. It is hard to say what your odds will be when it comes to starting a new business, but it is smart to keep in mind that many new businesses fail.
It is wise to have at least six months of living expenses saved before you start your business. This is in addition to any seed money you have for your company. Ideally, this figure can be raised to one year.
6. Outsource
If there are any other aspects of business where you need help, don’t hesitate to outsource. While you may want to do everything yourself, it is unrealistic that you will be able to accomplish all of the tasks related to starting a business on your own.
If you are not a financial expert, make sure that you hire one to take care of your books and taxes. Too many small businesses fall victim to poor bookkeeping and lose their businesses because they have not paid their proper share of taxes.
7. Location is Everything
It is a good idea to perform a site study of your new business and to compare different locations before you sign a lease. Find out how many people live close to your office, how busy the roads are, and which other businesses are nearby. If you don’t have the resources to do this on your own, contact your local economic development organization for help. They may be able to provide this service at a free or reduced cost.
8. Avoid Burnout
Finally, you should take steps to avoid burnout. Continue with your hobbies and special activities. Make time for your friends and family. If you can go into your business with healthy work-life balance, you will be happier and more successful.
Scott Smith of Saratoga Springs, New York has provided these 8 tips to help you get your new business up and running. Above all, make sure that you are going into business for the right reasons. Your company will be successful if you put in the time and effort.
