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10 Things To Do Before Starting A Business

You should not underestimate the challenge of starting your own company. It is always going to be a massive endeavor to take on. You need to make sure that you prepare for the uphill climb because there is certainly a steep road ahead. The idea that most businesses fail within the first five years has been hotly debated however starting and running a business for years on end is no small endeavour. The key cause is that new business owners do not take the right steps before opening their company. There are a number of important issues to consider before you even think about opening your doors.

Find Your Target Market

Your first step has to be thinking about your target market. You need to consider who is going to be interested in buying from your business and who your products or services appeal to. No product is universal and finding the right target market is going to increase your chances of making large profits. Your target market is going to impact everything about your business model from how you promote your company to where you choose to promote it. For instance, if you are using sponsored content it will shape which blogs you select for the articles advertising your business.

Name And Logo

Next consider the name and logo for your business. The name and logo needs to be memorable and dynamic. It should stand out amongst the sea of competition that you’ll face online. You may want to pay more attention to the logo rather than the name. Research shows that consumers are more likely to remember images rather than words. Consider hiring a professional to create your logo too. That way, you can avoid it looking as though it came out of a cookie cutter. Once you have decided on a name and logo, trademarking is vital. You must make sure other businesses aren’t able to piggyback off your potential success. Also have a look at Branding Considerations For Your New Business.

Build Your Site

Where are you going to display the name and logo of your business? A key area of your campaign would be your website. Again, you should hire a professional to design and website and make sure you host it yourself. By hosting it, you can increase your potential ranking online, thus attracting more traffic to your site. You need to think about what your site is going to be used for. It could be a place purely for marketing purposes, or you may want to set it up for purchases. If the latter is true, you must invest in secure sales software to protect customers data.

Set Up Social Media

No company will survive on the modern market without a social media presence. You need to set up profiles on everything from Facebook to Instagram and Snapchat. This will give you a wide range of options when choosing how to interact with potential customers online. More importantly, it will enable users online to easily find your business, updates, and information. These profiles can should have a specific tone and a consistent. You can also republish any content that you produce across all your profiles. This will ensure that you get the largest reach online.

Get In The Green

Starting a business is always going to be expensive, and it will damage your credit score at the beginning. You will need to borrow a lot of money for everything from inventory to employees. Increasing your credit score before you open your company will ensure you can borrow money with low-interest rates making it more manageable. At the start, most business owners pay for expenses out of their own savings and quickly run out of money. At this point, you will have no choice but to borrow. It is crucial that lenders trust you to pay the money back or interest rates will quickly push your company into unmanageable levels of debt.

Pick Your Business Model

There are lots of business models to choose from when you decide how to run your company. For instance, it is possible to set up a company and run it from home, online or tap into an established brand via a franchise model. You might also consider using freelancers or outsourcing agents rather than hiring permanent employees on contracts. It all depends on the type of business that you want to run and the cost cutting schemes that you want to use. Another good post to read is What Is The Best Legal Structure For My Business?.

Hire A Legal Advisor

A legal advisor is always going to be a beneficial hire for your business. It should be one of the first individuals you think about recruiting. They can help you with everything from paying the right amount in tax to forming contracts with business owners for suppliers and stock. They will ensure that you are up to date with important regulations and laws that will affect how you run your business. Also read Why Its Important To Engage A Lawyer ASAP When Starting A Business.

Form Contacts In The Industry

No business owner is an island, and it’s important that you have people in the industry who you can contact for help and support. A mentor to help guide you and provide skilled opinion is also highly recommended. You also want to make sure that you have clients set up, interested in your service before you open your doors. Early guaranteed customers will be crucial for keeping your company profitable in the first few months. You might already have contacts from a previous position in a similar business. If you don’t, think about attending tradeshows and exhibitions. This will give you a natural way to rub shoulders with investors, suppliers, and buyers.

Consult With An Expert

You won’t be an expert in all the areas of running a business. But you can hire someone who is. There are consultants for every sector of a company who can aid you in marketing, accounting or employee management. With someone by your side who has experience in these areas, you can avoid some of the common early pitfalls new owners always fall in.

Prepare Your Escape Plan

Finally, make sure you have an escape plan ready if things don’t go your way. It is possible that your business doesn’t see the level of demand it needs to stay profitable. If that happens, you should have a plan to quickly sell your inventory and make any money you spent back as quickly as possible. This will ensure that a failed business plan doesn’t throw you into a debt spiral. You should hope for the best outcome when starting a business and yet plan for the worst.

Additional Reading

Where To Find Help And Training For Starting A Business?
How To Check Business Name Availability?
How Do I Write A Business Plan?
How Do I Price My Products/Services?
Ideas For Keeping Business Costs Down
How Do I Manage Business Cashflow?
How Much Money Will I Need For My First Year Of Business?
How Do I Check My Businesses Compliance Requirements?
What Do I Need To Prepare Before Hiring Staff?
Five Basic (And Cheap!) Tasks That Will Dramatically Improve IT Security For Small Businesses
What Insurance Do I Need For My New Business?
Do I Need To Be PCI Compliant?

Suggested Next Read: How to Start a Business For Under $5,000

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