Here are the ABC's of launching your company
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You may be asking yourself this very question. Instead of trying to answer it, ask yourself the following 12 specific questions:
It should also be noted that part of the answer to the question of if you should start a business depends on your business idea. Small business ideas are not created equal and some of them – restaurants for example – have a higher likelihood to fail. This brings us to our next topic.
Enthusiastic entrepreneurs are often so excited to launch their new venture that they forget to do some important preliminary work that will up their odds of success. Consider the ABCs below.
Accept the fact that you will have fierce competition and that it is good. Come to appreciate your competitors since they will help you grow to be a stronger business. No company worth owning is in a non-competitive field.
In order to beat your competitors, you’ll need to know who they are.
What type of organization, for legal and tax purposes, will you set up for your new venture? Should you operate as a sole proprietorship DBA Doing Business as, corporation or LLC Limited Liability Company. Ask yourself the following questions and hire a professional attorney and accountant tax adviser to assist you in this crucial first step.
Not all business structures are created equally. And this means that only a certain type might be right for you.
Look into limited liability companies (LLCs) or corporations as options.
These cash flow essentials will keep your new business continuing to run during economic cycles. No business can keep its doors open without cash, especially fast growing startups. Inadequate cash is amongst the top reasons businesses fail. Save your company the same fate by pre-planning for adequate flow.
Your business will need money to be successful, so consider the following:
The key question for you might not be, “Am I going to start a business?” Instead, it might be, “Am I going to start a full-time business that will require me to quit my primary job?”
Similarly, let’s say you’ve worked for many years and saved a lot of money and are close to retirement. Now you think you want to start a business. So the key question for you may not be, “Do I want to start a business?” Instead, it may be, “What is the maximum amount of money I am willing to risk on a new business, if any?”
Your initial investment will have an impact on which businesses you can start, but it doesn’t mean that you can’t start a business on a small budget. Check out how to start a business with little to no money.
Starting any business involves risks. And for most businesses, significant risks, as the failure rate for new businesses, is high.
Facing risks makes people fearful. Often, you can reduce the fear and feel better about starting a business if you have firm, hard limits. Limits that you put into your business plan. Consider the following:
So as you can see, deciding whether you should start a business can be complex and require some exploration and thought.
You might be thinking, “Why should I limit how much money or time I put into my business? I want to think big right off the bat and do everything right and as well as I can.”
Well, that’s the kind of thinking that can get you into trouble. If you are at all anxious about pouring all of your time and money into a business now, imagine how anxious you will be on the days when it looks like the whole show may go south (and almost every business has those days).
That’s why, for many people, the best approach is to start small with specific limits. In fact, you might want to first start a business that you see as just a simple test business, to get your feet wet and build your experience. It will be time well spent.
Before you start your business, it is absolutely crucial to have a plan. When you start thinking about your business, even in the very early stages, start creating your business plan. You don’t have to write the whole thing yet! Even just building your business plan outline will help you identify the potential strengths and weaknesses of your future business.
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