10 things to consider when starting a business

If you're thinking about starting a business, the task might seem so big that you don't know where to begin. It's true that this process can be a colossal amount of work, but the rewards will also be significant if you come out on the other side successfully.

With that in mind, abiding by carefully laid out steps will help ensure you have considered every aspect of starting your business, which will allow you to stay on the right path throughout the process. The following considerations are just some of the things you need to think about during this time:

1) Figure out exactly what you're going to offer

In some cases, you may think pretty broadly about what your company could bring to the table, but it's better to really drill down on what services or products you're going to specialize in first, according to MPM. That way, you can focus on getting those offerings to be as good as they can possibly be, before you start to pivot anywhere else. Keeping things simple at first could help you in the planning stages.

2) Who your target customers are

Just like you need to think about exactly what you offer, you also need to think about exactly who would pay for it, MPM said. You should have a very clear picture of who your ideal audience is, and whether your offerings will – in some way – give them something they don't have currently. That kind of thinking could help you unlock a truly unique angle from which to approach the market.

You need to think about what your business offers that others don't.

3) Look into potential competitors

Simply put, starting a business is all about meeting a need that's not being filled. Thus, if you're entering a crowded market, you need to think about what you bring to the table according to Business News Daily. It's also important to make sure your potential competition won't be able to muscle you out, or that you will be well-positioned to withstand competitive tactics.

4) Consider the legal work

When you open a new business, you will likely have to make a lot of legal maneuvers, such as registering it, making sure you are set up to properly compensate employees and so on, Business News Daily added. For that reason, consult with a small business lawyer and determine the steps needed to make sure your company will be a fully legal operation.

5) Think about what you, personally, bring to the table

Whether you are going to be the lone face of your company or one of a handful of new partners, you need to consider what you have to offer as a professional, according to Entrepreneur. That way, you can determine your own role and farm out the stuff you may need help with, to ensure you're covering all your bases.

6) Talk to your connections in the industry

If you have even a few years' worth of experience in your chosen field, you probably know plenty of people who can help you take this next step, Entrepreneur advised. Whether that's another business owner who can give you some friendly advice, a buyer at another company who can become your point of contact there or someone who can help get you in all the right rooms, leaning on your network is vital when you're just starting out.

7) Crunch the numbers

Running a business can cost quite a lot of money, and if you haven't properly planned for your expenses versus the funding you have, it can present a major problem, according to Litmus Branding. For that reason, just like any other major financial decision you make, you need to do all your due diligence and figure out exactly how much money you have on hand to start versus what you will expect to spend, as well as the kinds of revenues you can expect in your first month, quarter or year.

8) Look at what kind of space you need

A big part of your expenses as a business could come from the facilities you need, Litmus Branding cautioned. For instance, if you want to open a manufacturing business, you might need a sizable industrial space, but if you're going to be a two-person consulting operation, you might just be able to work out of a spare bedroom. Incorporating these factors into your decision-making as you start out will be important, and you can adjust accordingly as your business grows.

9) Put a plan together

All of the above fall, to some extent or another, under a business plan, which any reasonable lender will want to examine carefully before granting you credit, according to Driving Innovation. These plans should be all-encompassing, but you should also be prepared to answer questions as they arise so that you don't end up overlooking any details that could derail your financing.

10) Be prepared to get it wrong

Finally, it's important to remember that many companies are not a success right out of the gate, Driving Innovation noted. You will almost certainly make mistakes, not everything will work out as you plan (even if you do everything right) and you just can't account for every eventuality. Going into the process with that knowledge will help you navigate with a better sense of what actually constitutes success.

Categorised in: Starting a Business in Arizona

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