Starting a new business is not a walk in the park. There are a lot of detailed tasks you need to do and keep track of because the path to entrepreneurship can be overwhelming and nerve-racking. There is a great deal to manage from working with legal problems, to developing a Web presence; it is not difficult to overlook matters that are significant. Are you prepared for success? For Failure? Starting a new Business will test your resolve like nothing you have ever tried.
I have heard it said that the most important step in starting a new business is the one that you miss. I will not attempt to cover all the step you need to take but be sure to do these ten things at a minimum before you put out that “open” sign.
10 Things to do Before Starting a New Business
1. Speak with an accountant
Before you begin, do lots of groundwork, consult an accountant; this is an important measure. Folks won’t comprehend why you’d consult an accountant before beginning a new business or made any cash, but it will help you realize what you needed to do to make this work from a profit point of view and the ins and outs of state, national and local taxes. Also, you may want to get an accountant’s perspective on the types of incorporation you want to pursue.
2. Survey your intended market
One thing an aspiring entrepreneur need to do is survey a focus group of the target demographic for the service or merchandise. It’s critical to ensure you are delivering what your customer needs, not everything you would like. This will equip you with insight into your customer’s buying decision and save you lots of testing later on. You do not need a formal, traditional focus-group like you see on TV, but it is important to get some market perspective before you start on creating your Minimal Viable Product, MVP.
3. Get legal counsel
If there’s one piece of advice I give to all entrepreneurs before formally starting their new companies, it is to seek legal advice. We frequently make the premise that legal counsel is only necessary when we get ourselves into trouble, but the preventative and proactive groundwork is a key step. Not only will an attorney be able to help you determine what type of incorporation is best for you but they may be able to help you identify the challenges you may face before you face them.
The use of an attorney ins an efficient method to set your company on the road to long-term success. Investing in their insight at the beginning of the process can be of great benefit by keeping you out of trouble before you get into it.
4. Look beyond your start date
Look beyond your start date, when beginning your new company. In other words, many startups do not make profits for two or three years. Discover your best and worst case scenarios according to earnings and sales projections. Set up a sales and marketing budget for at least three years and do not simply assume folks are going to do business with you because you are open.
5. Keep in touch with other entrepreneurs.
Before starting a company — and even after — it’s very vital to network and tap into mentors and professionals who’ve been there before. Entrepreneurs who have been there before had similar encounters and were more willing to help you out. Obviously, it’s impossible to learn everything right away; however a significant lead from intelligent folks undoubtedly helps.
6. Create a website that is proper
As a relativity new business entrepreneur, take a time to choose the best platform for your hosting and website. I recommend WordPress as a platform and a C-Panel Host. I like these platforms because there are tens of thousands of consultants and engineers all over the world that can help you if you need. WordPress is the standard. This site is built on WordPress.
7. Save up enough cash
The most dangerous pitfall with many new entrepreneurs is that they do not have an inadequate cash supply to run for a long time if sales do not come in as fast as planned. I highly advised that you have at least one year’s worth of operating expenses in the bank on the day of your grand opening. This, naturally, presumes that you have a sound business plan and strategic growth strategy set up which you religiously follow from day to day.
8. Understand all taxes and fees
There are many different types of taxes and fees that your business will need to collect and submit. You will need to determine how much your payroll will be and make your tax payments timely. Also, you need to find out other business taxes including county, city and state. There’s not one list of all the fees you may have to pay, so you need to get organized and find this out ahead of time, filing and forgetting can make those late fees accumulate fast.
9. Consider your exit strategy
The chief virtue to have other than confidence and tenacity is your exit strategy. Always have a plan so that if all else fails, you will be able to liquidate your inventories. Maybe you will lose a little bit of cash, but you need a plan to escape a catastrophe.
10. Ask yourself -Why?
Every entrepreneur needs to have the ability to answer the inquiry, ‘Why have you been doing this?’ It seems like an easy question, but there will be times when things fail, hope dwindles, and you need to be reminded of why you are in it. As an entrepreneur, progress and building are an activity which never finishes completely. It’s perfect practice to give yourself a mission statement to concentrate on the job aims in addition to private ones.