Starting your very first business is an exciting goal, but it’s one you need to take seriously if you want to see success right off the bat.
Many newcomers have difficulty growing a business, and rightfully so. It’s not an easy thing to accomplish, especially in such a short timeframe. However, that’s what we’re here for; to help guide you through the ropes and make the process easier for you.
Here are some of the best tips to help new business owners get started and grow early.
Draft Out Your Business Plan
Entrepreneurship is one of the many career paths you can take with a business degree, but a degree is not even always required. The very first step to opening a successful company is to create a comprehensive business plan. This plan will include what your company’s name is, the niche it’s geared towards, who your target audience is, and how much money you’ll need.
As this is the first step, there’s nothing wrong with taking as long as you need to figure everything out. In fact, it’s common for these types of plans to change over time, especially when you become more successful. Even established CEOs change up their plan when the situation calls for it.
Determine Your Business Will Be Set Up
In today’s society, you can either have a traditional company set in the real world or you can create an online company that is fully virtual. There’s no right or wrong answer here as it’s just a matter of preference. Though, it’s worth mentioning that both have their pros and cons. Online businesses are far easier to open than a traditional one. Websites, like Squarespace can create the base of one with just a few clicks of your mouse.
But the problem is that there’s plenty of competition these days when it comes to online marketing. The popularity for online businesses surged during the COVID-19 pandemic, so you may find it difficult getting your foot in the door. A company in real life can yield greater support and financial gain. But it’s also very demanding, time-consuming and pose financial risk. Make sure you carefully think things through as you weigh the pros and cons of both options.
Figure Out the Finances
Regardless of how you go about making your business, you’ll need to have enough money to see it through. The cost is heavily dependent on your choices and the niche you’ve chosen. But to give you a very rough estimate, most startups tend to cost somewhere between $30,000 to $45,000. There are ways around paying this if you’re unable to fund this yourself.
Ideally, you’d want to take out a business loan. However, a personal loan can have the exact same effect while offering you a lot more flexibility. Granted, it’s ultimately up to you to decide whether a personal loan will work better for you. There are pros and cons of a personal loan to be aware of. Research is vital before you go ahead and apply.
Select a Structure
There are structures that owners must choose before they’re able to legally able to do business. There are four main structures: sole proprietorship, partnership, corporation, and limited liability company (LLC). Sole proprietorships allow owners to have complete control over their entire company, and this includes all the responsibility such as handling taxes and legal claims. Partnerships function the same way with the difference being a co-owner alongside someone else. Corporations separate the business from the owner as its own entity. Instead, it’s run by shareholders and investors.
Related: Choosing the Right Legal Structure for Your Business: A Comprehensive Guide
In doing so, however, corporations have some of the best personal liability protection you could ask for. One thing we should mention before moving on is that there are multiple sub-categories. You can choose to be a B-corp, C-corp, or S-corp. Each one works a bit differently from each other, but they generally accomplish the same thing.
LLCs are all three combined into one structure. You get the ownership of a sole proprietorship, can hire more people like a partnership and you have the protection of a corporation. A lot of established businesses changed their structure solely for all the benefits an LLC has. It’s also the most beginner-friendly option as it takes care of the most important stuff for you. However, the choice of what works best is ultimately up to your preference.
