June 24, 2016
When it comes to starting a business, a lot of people are tempted to say “Screw it, let’s do it!” And while spending too much time in preparations can often be a hinderance to success, a little preparation can go a long way. After all, many people suffer setbacks and defeats because they jump into the fray with a half-baked idea, no money, and no plan to attack the market or their industry.
Fortunately, most companies know to take stock of a few important aspects of starting a business before they jump in feet first. And if you don’t know what to take stock of, here are the things any prospective entrepreneur should take care of before entering the business arena.
Your idea may be brilliant, but what about capital? Do you have the necessary resources? Have you found the ways to raise the necessary funding? For those willing to do so, there are always ways to find money for a good idea, but you should think about them before you start running into the red, not after.
That said, what about your own needs? Do you have bootstrapping abilities to keep you going for another six months or a year before your business starts bringing in dividends? You better look into angel groups, accelerators, and venture capital firms in order to get a good footing on the finance side of things.
If you are going to supply your customer with physical goods, you should take great pains in establishing the entire production chain. If at any moment any of its elements fail to work, the entire business may collapse. You can’t promise your product to your costumers when your manufacturers can’t promise it to you.
Be it plastic manufacturing, food processing, or electronics, you should make sure that the goods will be ready on time and reach their end users when they are supposed to.
Hopefully, you don’t expect to do all the work on your own. Who are the people you are going to delegate part of your responsibilities to? Are they your friends who are ready to work for the sake of vision? Or are they experts you hired for cold hard cash? How long can you expect them to keep working if the paychecks stop coming? Do you have resources to support the team you currently have even if the business doesn’t bring profits?
Having people around you that can help you get the business off the ground is one of the most important decisions you’ll make. A good team can make or break a company before they even launch.
Have you decided on a good, memorable name? If you have, check if it is already occupied. If not, make sure you own it. If your business becomes a success and you discover that there is an eponymous firm suing you for copyright infringement, it isn’t going to be pleasant.
Your Personal Life
Starting a business takes an enormous investment of time, energy and resources – much more than you’ve ever invested in your daily job. You may easily find yourself working between 60 and 80 hours a week, especially in the first few months or even years. It means that you will have much less time to spend with your loved ones and, frankly, yourself. Are you ready for this?
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