Starting your own business can be an immensely daunting task. An inconceivable amount of businesses have tried and failed to cement themselves within their target market. So, for many people considering starting up their own business, to see so many falling by the wayside before them can leave would-be entrepreneurs doubting themselves.
The road to successfully establishing a small business, and keeping it afloat, is a long and bumpy one. Frequent obstacles and difficulties are to be expected which, although intimidating, can be dealt with through the correct preparation and risk management.
According to the Telegraph, 20% of businesses go bust in the first year, with an incredible 60% not making it past three years. This is often as a result of multiple factors, including a lack of planning and funding.
So, for those who have taken the plunge and decided to start up their own business, here is a short guide of helpful dos and don’ts as you face the challenges ahead of you.
DO: Draw up a business plan
It is essential when starting a business that you detail what exactly it is that you are offering, how it is different from rivals within the same industry, and your plan for marketing. A business plan is especially crucial if attempting to secure funding.
DO: Look for funding
Self-funding your own business is the simplest method, but for many this is impossible. As such, organisations exist for the purpose of financial assistance.
Websites like bestsmallbusinessloans.com can help recommend which of these organisations are the best to opt for when looking for a helping hand cash-wise.
DO: Consider the side-effects
Starting and running a small business can have detrimental side effects. Stress, time consumption and general financial and physical demand are frequent side effects of running a business.
So, if considering starting up your own small business, always take into account the toll that doing so may take on your personal life.
DON’T: Underestimate what it takes
One of the biggest things to bear in mind when starting up a small business is to simply not underestimate every part of the process. Underestimating your costs, your competition, and the time it takes to gain traction can be fatal mistakes for any first-time business owners.
According to fleximize, the majority of businesses do not start turning a profit until as late as the third year of existence. Realising this, and accepting the reality of your situation are essential when considering your startup.
DON’T: Rely on friends and family for feedback
Relying on the opinions of those you love can be a huge mistake when entering the world of business. Whilst coming from a place of love and support, these opinions on your products, your services and your business idea in general can be biased and based on assumptions.
As such, seek the advice of professionals and those that know the industry inside out for honest feedback on your ideas.
DON’T: Do it all by yourself
Don’t assume you can do all of this by yourself. Consider working with professionals such as an accountant or bookkeeper as part of the cost of running a business, and include these costs in your budget.Â
Furthermore, always take into account the employees you may need to get the business off the ground – they can be the backbone of your company. Entrepreneur detailed the five types of employees that every small business should seek as they look to build a successful company.
