7 things entrepreneurs absolutely must know about starting a business

The economy is doing great and so too are millions of Americans who may not be working their dream jobs. For that reason, many workers may see themselves starting their own business that is more closely aligned with what they want to do, and with the flexibility that comes with being your own boss.

However, experts will always caution this kind of decision isn't one that should be taken lightly. Starting a business takes a lot of preparation and careful consideration, and any aspiring entrepreneur has a lot to learn before they set themselves up for long-term success in their chosen field.

Below are several of the most important things anyone who's considering their own business opportunities in the months ahead will need to know:

1) Choose the right name

You may have a lot of good ideas for a business name, but there's more to the choice than making sure it's catchy or memorable, according to the Young Entrepreneur Council, writing for Forbes. You will also need to make sure it's not already a trademarked business name, and that you can register it within your state, to guarantee you won't run into legal complications that require you to make a change later.

2) Study every regulation pertaining to your business

Along similar lines, you would be wise to talk with a business attorney to get a better idea of what legal issues you might encounter in the course of operating as an independent entity, the Young Entrepreneur Council cautioned. Discussion topics should include your tax liabilities, licensure requirements and other regulations that might pertain to how you run your business, but a lawyer will be able to give you more specific ideas of what you need to know and applicable rules with which you will need to comply.

3) Accept what you don't know

Even if you're an expert in your field, you probably don't know all that much about running a business on a daily basis in addition to doing the great work you may have been doing for years, according to Entrepreneur magazine. Try to approach every day with the understanding you may not know best in a given situation and there's a lot to be learned. This may be especially true when it comes to managing employees, because not only is "being the boss" more difficult than you might think, but also there are many human resources issues you're just not going to have familiarity with. 

4) Don't expect success right away

When you start a business, you likely have a lot of big ideas about what that's going to mean for your lifestyle and finances, but you would be wise to keep in mind that overnight successes are extremely rare, Entrepreneur added. Even the companies that seem to come out of nowhere to find success usually saw their owners spend years working hard just to scrape by, before finally hitting it big with a great idea. In fact, even if you have a great idea right now, you might not be able to get it fully off the ground for a few years down the line.

5) Refer to your business plan regularly

Any small business attorney will tell you that writing a business plan is not only smart – it's a necessity, according to American Express. Getting all your ideas down on paper, with your goals, vision and more clearly spelled out will help you get a good understanding of things like how many people you might need to hire or how much you might need to borrow from a lender. 

And while you may not want to think about it, mapping out your exit strategy, just in case things don't work out as you'd hoped, is a sound business plan.

6) Properly value yourself and your business

One of the things that's very tempting for small business owners when they first enter a market is to undercut the competition, American Express noted. This isn't usually a good idea. If you set yourself up as the discount version of more established companies, potential customers or clients might not be willing to pay more for it when you raise prices later. That can set you back more than you might expect.

7) Branding is everything

As a small business owner, you'll have to think about what sets you apart from your competitors and develop some customer- or client-facing messaging around that, according to Constant Contact. You may be able provide great products or services, but if your advertising isn't drawing eyes in the first place, you aren't likely to gain a lot of traction as a new business.

In general, the more you can do to research your local market and everything it takes to start a business, the better off you will be when it comes to making the best possible decisions at every step of the process.

Categorised in: Starting a Business in Arizona

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