Starting a new business is tough. As a new business owner, you’re bound to come across many challenges and difficulties that can disrupt your growth and make the task of becoming a successful company almost impossible.
To improve a new business owner’s chances of being a success (and not being one of the many businesses that close down within their first five years) there are a lot of essential things that they need to do when first starting to put them on a strong foundation which the business can grow on. Here are the top eight essential things new business owners need to do to have a successful career.
1. Get The Right Experience
When starting a business it’s essential that you have the right kind of experience before embarking on such a challenging and obstacle-filled endeavor. Having the knowledge and being in a business setting before starting your own business will enable you to better navigate any challenges and also give you an understanding of how a business should be run.
One of the best ways to get the required experience for running a new business is to spend some time working in a business environment. This will allow you to get used to how a business works, and the networking opportunities should also teach you what you should and shouldn’t do.
As well as gaining practical experience, you can also learn a lot of useful knowledge about business and how to best manage one through an MBA, click here for more information. This course teaches students a well-rounded understanding of every aspect of business, meaning that graduates will be able to excel and better operate a business.
The course can be taken on campus or online at many great universities across the country but be warned that the course can be very intense and requires prior experience and a bachelor’s to attend.
2. Identify Your Business Opportunity
It’s important to figure out what type of business you’re going to run and to help you do that you first need to figure out where any opportunity lies. It’s important to determine what your passions are and to understand your personality type to help you figure out a business or a service that best suits you.
It’s always going to be easier to manage a business that does a service that you love, but it’s also equally important to identify any gaps in the market that you can exploit. You should also conduct some market research to ensure that you’re not entering a dying industry but instead one that’s set to grow.
3. Build a Business Plan
For any start-ups, a business plan allows you to gain a better understanding of your industry structure, competitive landscape, and the capital requirements of starting a small business.
A plan helps a business stay on track and guides them to their goals and initial targets. You can either create a robust plan that details every aspect of your business or a leaner one that summarizes what you want to do. The aim of both is to provide a blueprint of operations so that you can grow efficiently.
4. Find Start-up Money
A business needs money in order for it to get off the ground. This is because there is a wide array of start-up costs, such as staffing, equipment, rent, and a lot more. It’s a good idea to save for your business and to only launch it when you have more than enough to keep the business operational for half a year.
If you’re unable to save all the money yourself, your next bet is to look for funding from an investor or a bank loan. The best way to persuade someone to invest in your business is to create financial reports and financial projections for the next five years.
5. Name Your Business
The name of your business requires a lot more thought than many people initially think. This is because the name of your business is the brand of the business. It’s what helps distinguish you from your competitors so picking a good, memorable one can really boost your marketing and advertising.
Your name needs to evoke positive feelings and associations, but also make it clear in what the business does. Finding the perfect name takes research and it takes time. This is something that new business owners should not rush.
6. Choose a Business Structure
The structure of your business is important, as it will determine factors such as taxes and income, as well as who has ownership and full control. Popular business structures include partnerships, sole proprietorship and LLCs.
You can also form a corporation but whatever you choose will drastically affect your fundability and your liability, so it’s not a choice one should make lightly. It’s also important to remember that the structure of your business can change and alter as you grow, so for starters, it’s best to find a structure that works best for a small business.
7. Get Your Business License and Permits
Starting a business is an exciting step for people, but that doesn’t mean that new business owners should neglect the mundane yet necessary paperwork and regulations requirements.
The requirements you need to meet with change depending on your business structure, but common things you’ll need to sort out are your employer identification number, zoning permits and sales tax licenses. It can be very boring but failing to sort this stuff out early can get you into trouble.
8. Set Up & Determine Your Business Location
A new business needs to find a good place for their initial office or store to be located. You want to find a location that is easily accessible for people to visit and attract a good level of foot traffic, however, you want to ensure that the rent isn’t too high. Once you have your location sorted out, you then need to set it up and get all the necessary equipment and supplies.
Depending on the nature of your business you may wish to operate online and avoid brick and mortar stores altogether. Many businesses, including Betway, have chosen to focus on the online market in recent years.