Starting a new business is one of the most exciting decisions you could make, but it’s one that comes with a huge amount of responsibility. There are several things that you have to carefully evaluate to set yourself up for long term success, from choosing the right name to planning your finances, and every detail really does matter.
If you’re at the very beginning of the journey, you can discover how to choose a company name, a small but crucial step in building your brand identity. From there, you can learn how to make yourself more marketable and visible at the same time. Let’s take a look at six important things to consider when starting your own business.
1. Know your ‘why’
Why are you starting this business in the first place? Are you looking to solve a specific problem that people have or to gain more independence? Are you looking to provide something or build wealth? You have to be clear about your motivations because that will help you to stay focused when the challenges arise. It also gives your business purpose which is going to resonate with your customers and your partners alike. Passion is an incredibly strong motivator, but aligning that passion with a clear purpose is what sustains entrepreneurs over time.
2. Do your market research
A big mistake that you could make as a new entrepreneur is to skip this step. You cannot launch a product or a service without validating the demand for that product or service. You need to know if there is a real market out there for what you’re offering. You need to know who your potential customers are and what their needs and pain points may be. Conduct your surveys, run your tests, and gain some honest feedback. This is the data that will guide product development, pricing, and marketing strategies.
3. Choose your business structure
You must research each option or consult with a legal or financial advisor to determine what’s best for your situation. The legal structure that you select, whether sole proprietorship, partnership or corporation, will determine everything from taxes to liability. The right structure protects your personal assets and makes your business more credible to potential investors and even your clients.
4. Name it and brand it
The first impression that your customers will ever have is your business name, so it should be easy to remember, relevant to your offering, and legally available. Check the domain name, availability and trademarks before you get started. Good branding goes way beyond a name and a logo, and it includes your tone, visuals, and the overall feeling people get when they interact with your business.
5. Start planning your finances
Every business requires money to operate, so whether it’s to cover those startup costs by inventory or pay for marketing, you need to create a budget and outline your financial projections. Know what your break even point in cash flow needs are and then consider how you’ll fund that business.
6. Don’t overlook compliance
Licenses, permits, and industry regulations are all legal requirements, so you need to consider what your business type may be and what paperwork you need.