A Guide to Starting a Business
Becoming an entrepreneur can be an exciting and rewarding experience but also challenging. You may feel overwhelmed about where to start, but it’s essential to remain consistent, develop a strategy, and know when to take the next step. Follow our brief guide to starting a business to improve your chances of success.
Three People You Can Rely On
“For a new business, you’ll need three people you can rely on to help lift your business off the ground and get it moving forward. Each business should have a banker, an attorney, and an accountant,” says Mark Bennett, Vice President, Commercial Lending Officer. A banker should have a positive relationship with your business and provide sound financing opportunities and guidance about investing. An attorney can offer you legal advice, help you plan out the structure of your business, and handle the compliance and licensing aspects. An accountant would handle the daily finances of your business, provide ideas on how to improve cash flow and offer quick decision-making practices.
Conducting Market Research
When your business structure has been created, a comprehensive study of your market needs to occur before you set up shop. This is a critical moment because it allows you to learn about your potential customers and their needs, as well as the financial trends in your industry. You’ll need to ask yourself these questions when conducting market research.
- Do Consumers Want Your Product or Service?
- Will They Have The Purchasing Power to Afford It?
- What Can You Realistically Price?
- Does The Community Need What You’re Offering?
- How Many Competitors Will Your Business Have?
The results of this research will help shape your business and give you a greater understanding of what you can offer to your customers. Accurately assessing your market and competitors will help you make critical decisions regarding product designing, pricing, and marketing.
Having a Business Plan in Place
Every business starts with a vision, and a comprehensive business plan is needed to convey your key objectives and strategies. “Having your business plan in writing shows that what you say is more than just ideas. It demonstrates your dedication and willingness to meet your goals when looking into financing options,” says Bennett.
An executive summary should communicate the overview of your business, the product or service you will provide, and how your business benefits the local economy. Having tangible and progressive goals can help you on your entrepreneurial journey. Periodically assess your goals to see if you are on track to meet them or set new goals to work towards.
Another important aspect of your business plan is understanding of your target audience completely. Knowing your customer base can help you create marketable products and give you a competitive edge. Your customers are your foundation, and their expectations are constantly changing, so businesses need to do their homework on what is expected of them.
Creating financial plans will formulate a realistic budget and organize your expenditures. You’ll need to be able to calculate your operational costs and understand where your cash flow will come from. Predicting cash flow may be difficult initially, but it’s good to start with the basics. Have a clear plan for the initial startup of the business by including any potential expenses and being consistent with your reporting.