If you going to start a business, you really need to stop and think about what you’re getting into. It doesn’t happen overnight and the hope of quitting your job and starting an instantly successful business lies in the same reality of dragons and unicorns. A business is hard work… very hard work… and you really need to question your commitment to it.
Step 1: Do Your Research…
So, you think you have it all planned out? Well, I suggest you double what you have done. Yes, it will set you back a few weeks but it’s better than losing all your money through a lack of planning. Make sure you cover every point of your business from supply, customer service to how many paper clips you will need. The more planning the better off you will be.
Step 2: Make a Plan…
Now we’re not talking a simple plan about how your business will run on daily basis. You need to plan for the next 5 years. You need to know your sale projection, down to the day, who your target audience is. If you don’t have a practical business plan your business will fail.
Step 3: Plan Your Finances…
Now, this where you can split off from traditional business, as it will depend on what your business as to whether you need much start-up cash. If you do you can always take out a small business loan with a higher interest rate (as long as you don’t take forever to pay it back). Anything below $5,000 should be paid back within 2 months in my opinion. The main point here is to act like your running your business before it really starts, confusing I know, but all I mean is, plan out what you will be doing for the first month so you can make a flying start (e.g. secure a month’s work of trade work before starting).
Step 4: Pick and Register Your Business Name, Get Licenses and Permits, Choose Your Accounting System.
Now you need to register your business name; when doing this make sure you’re not ripping anyone off by using their name and also try to register a domain under the same business name, so you can create a website if you would like to. Make sure all the legal work is done and checked off by the reliable source (or 3), there isn’t anything worse than getting ripped off by the person you employed. Also, when getting the legal work done, don’t cheap out on it splash a bit of cash and get that piece of mind that it’s definitely done right. Now if you have a little background in accounting you will realise that it isn’t that hard…So I encourage anyone willing to give it a go to try it, a basic profit and loss, balance sheet and monthly statement can be done in a day, just search it all on Youtube, copy the structure and, if you understand it, you will master it in no time. If not, it’s a great idea to do a short course at a TAFE institute, it doesn’t cost the earth and the knowledge will be with you forever
In the end, if you work hard at your trade you will eventually get there, whether it takes one or five-years, hard work will pay off – it always does.
Part 3 coming out soon.