So many people have an innovative product, unique skills, or a good idea, but they often find out that it takes more than that to run a successful business. Millions of people try to start a business every year, but unfortunately, several fail just as quickly as they started up. Often times the closure of a business is due to poor planning ahead of time, as well as not knowing what you don’t know about entrepreneurship. Luckily, there are many resources and tips to take your business from an idea to a stable, profitable business. The most important ones are below.
1.Write a Business Plan
Writing out a business plan allows you to foresee the challenges that may arise during the course of your business. A well-written business plan can help you avoid unnecessary risk and financial shortcomings, and other easily avoidable mistakes. You can start with a big picture business idea and then get “into the weeds” detailing out each subsection.
In addition, to give you a better idea of what to expect, a business plan also has the following benefits:
- Statistics show that businesses who start with a business plan grow at a rate that is 30% faster than those without a business plan
- Most banks and private lenders will require a business plan as part of your funding application. Having one already prepared will save you a lot of time securing capital for your business.
- You’ll be able set achievable goals and milestones
So, what should be in your business plan? Your business should contain a detail description of your business, including any product or services offered. You should outline what your business does and how you’re planning to do it as well as what you’ll need to accomplish that goal. Additionally, your plan should delineate financial requirements, staffing needs, marketing campaigns, and more for the first 3 to 5 years of your business.
2. Work with Appropriate Consultants
Since most people are not jacks of all trades, many of the most successful entrepreneurs succeed because they surround themselves with people who know what they are doing and are experts in their fields. Utilizing such experts in the beginning stages of your business as well as throughout its tenure, will save you a lot of stress and money in the long run. The top professionals to consider are:
- Financial Advisors
- Insurance Professionals
They will explain your legal requirements, tax obligations, and insurance exposure based on how you structure your business.
3.Register Your Business
Once you are ready to take the plunge and fully commit to starting your business, you should register it as soon as possible and acquire a federal tax ID number.
While you can submit your business information online, a discussion with your attorney on the best structure for your business should take place first. The most common entity options are:
|Sole Proprietorship |
Limited Liability Company
4.Secure Appropriate Funding
You’ll need sufficient capital to get your business up and running. Since startup costs vary from industry to industry, there is no standard number you should aim for, your company may require more or less funding depending on your situation. That being said, there are many options for both small- and large-scale funding. Primary funding sources include:
What are the primary sources of funding?
|Personal Savings or Credit |
Friends and Family
|Angel Investors |
Most businesses require some type of initial investment and, similarly to funding, it will vary depending on your business type and structure. Typically, however, most new business owners will likely need one or more of the following line items: staffing, supplies/inventory, business location, and website development.
- Staffing: Your startup company will likely need one or more of the above-mentioned items. Initially, you may not need staff. For many small businesses it is usually a good idea to start small with staff, since it can be a major expense and add employees as your revenue increases.
- Supplies/Inventory: Supplies and Inventory are a nearly unavoidable costs in most businesses. Whether its office supplies like paper and shipping material or retail products like clothing or baked goods, you need to do a cost analysis to make sure you order the right amount. Over buying initial inventory is often a big downfall for many businesses. In your analysis consider how long, on average, it will take to “move” product as well as the price of buying vs. selling.
- Business Location: a physical address whether it is offices, retail space, or a manufacturing location is an important consideration and required in order to register your business. Depending on the type of business, you may need to buy or lease a property, however, many businesses operate out of their home or garage space early on, which may be a fitting option for you as well.
- Website Development: In this day and age, having a business website is vital to business success. So many consumers want to “google” your business, read reviews, and maybe even get a glimpse of your product or service. As such, it would be a huge detriment to overlook this resource.
6.Market, Market, Market
A business could have the best, most innovative product or service, but if it is not publicly known, the business can’t succeed.
While you should learn digital marketing techniques like: Content marketing, Email marketing and Search engine optimization, you also have the option of hiring a part- or full-time social media and marketing manager. Regardless of the route you take, you should utilize all opportunities to get your business out there, online, in person, and local resources like radio, billboard and print ads can be good options depending on your market.
When it comes to marketing it is important that your campaigns are able to adapt and change, staying fresh and relevant. Marketing efforts are one of the most important, if not the most important, components of launching your business. So, be sure to allocate a considerable budget.
Starting a business is no easy task. However, with the right amount of foresight and planning any one can take their idea and make it a successful business.
What Should You Do Next?
If you are interested in learning more or speaking with an attorney at Capital Partners Law, there are plenty of ways to get in touch:
- Call us toll-free at (833) 7-CAPLAW.
- Find your nearest office and call to schedule a free consultation.
- Complete our New Client Request Form online. (No obligation – an attorney will review your information and contact you to discuss your needs).
- Schedule a Free Initial Phone Consultation online now.
- Schedule a Free Initial Video Consultation online now.
This article is for informational purposes only. It does not create an attorney-client relationship with any reader nor should it be construed as legal advice. If you need legal advice, please contact our firm.