Starting a business is a dream come true for many people. However, it is not without its difficulties. Many companies go under within the first year of being started. This is a frightening statistic, and you shouldn’t want to be a part of it.
Most analysts agree that there are several pitfalls that can cause a business to fail. Chief among them is poor planning. If you fail to plan, you plan to fail. Here are four things you should do to get your business off the ground:
Do market research
Your business needs to fulfill a customer need, and you’re not going to know what customers want or need without doing some research beforehand. This includes having to examine your competition to determine if your business has a feasible chance of success.
A lot of other companies might be offering the product or service you plan to, and you must have a plan of how you’re going to separate yourself from them. What innovations can you add to your product and service? What kinds of unique touches can you include in your customer service plan? These are all ways to attract more customers.
Draw up a business plan
A business plan has a lot to do with the finances of your business. Accounting is one of the single most important facets of business management for any company, including a new one. You need to have your facts and figures in place so that you know how much money starting your business will need.
One of those things is understanding your operating costs and doing research to make sure that you keep them as low as possible. Look at competitively priced social media marketing opportunities such as those offered by Greenfly to trim your costs.
You should have a predetermined set of accounting and financial management practices that you intend to follow. This includes documenting your income and expenses. You cannot put these principles in place once the business is running. That would be akin to trying to fix an airplane mid-flight.
Get on the right side of the law
There are legal requirements for starting a business. Some of them are prescribed by the federal government, while others are state laws. Your business should aim to be compliant with them to avoid unnecessary red tape and potential closure before you even have a chance to succeed.
Cover your bases by making sure you comply with company registration regulations. Open your company’s business account and register your company’s name, logo, and slogan as a trademark to prevent others from being able to use them.
If you plan to employ people, there are employment laws that prescribe the process and how you treat workers. Leasing premises requires legal contracts with the landlord. Keep these issues strictly contractual; gentlemen’s agreements seldom work in the world of business.
Plan the logistics
If you need premises to operate from, find some options that suit your needs. The space you rent should be big enough and meet your contextual needs. It’s possible that you might start your business from home and keep it there for the initial stages. However, once it takes off, you’ll need to look at an alternative location.
Will you need vehicles for deliveries or collections? If so, then you need to make sure the vehicles are available and in running order so that you can get started without any hiccups.
Structuring your organization is another critical part of your logistics. Everyone working in the company needs to know what their roles and responsibilities are. The organogram should be clear, with you at the head of it, so that everyone is clear on who is in charge and will make the final decisions.