Start-up business owners go to work with stars in their eyes. They feel confident knowing they are their own bosses, or the bosses of their own employees. Once it’s time to set down to work, the reality sets in.
All decisions you make from here on will be crucial to the future of your company. Your judgement needs to quick, but well thought. How you prepare for these decisions will determine the success of your venture. Before you make that leap, consider the preparations that factor into getting your ideas off the ground. Listed below are five considerations for small business owners.
Business Plan
No entrepreneur should open up shop without a solid business plan. Without it, you’ll never be certain if you make or lose profit.
Well-developed business plans act like roadmaps. It should set the parameters of your profits and losses to compare against your progress. Make sure the marketing action plan is built on strong values and competitive advantages. Find a mentor who can guide you through the planning phase. SCORE is a good free mentoring program.
Taxes
Managing your income taxes might be easier when you’re an employee, but gets complicated when you run your business. You are responsible for setting aside funds from your pay (and your employees’ paychecks) for state and federal income taxes.
Financial circumstances will require you to register as a taxable entity. A lot of small businesses will register themselves as a limited liability company (LLC). An LLC means you are less liable for damages or losses than a sole proprietor. Registering as a corporation will make your business an autonomous legal entity that you, a partner, or shareholder pay into. Check with local tax laws to learn which avenues are right for you.
Sales
It’s easy to lose yourself in abstract ideas, but making bank brings everything into the material world. The number of sales you make early on will determine the outcome of your venture.
Gaining enough sales to get you in the black will take a lot of networking. Build a personal network of entrepreneurs in your field. This will increase your resources and provide a support line to keep you on track.
Talent
Maybe you have made enough of a profit to expand. Expansion from a home office to a larger facility will require extra hands to deal with each facet of your production. Make sure you get the best.
The team you assemble should share the same vision you have for the company. They must be willing to put up with the long hours and hard work that comes with bringing your ideas to fruition.
Infrastructure
It always helps to sock away a decent amount of money for office supplies. Make a list of small and big-ticket items that need re-stocking.
Office infrastructure will eat up a significant portion of your start-up costs. Start at stationary and work your way up to software. Invest in sturdy office furniture. Don’t forget to hire a hi-vac cleaning service.
