Posted on January 12th, 2018
Starting a business, no matter how small, requires time, effort, and of course, money. That said, it's only necessary to make sure that the business goes well and that you - as a business owner - are not placed in an uncomfortable situation.
Here are 7 tips to help you get started in business:
1) Write a business plan
Ideas are just ideas, the same way enthusiasm is just enthusiasm. In order to be successful in running your small business, you will need to have a business plan in place. This business plan should contain exactly how you're going to begin and run your business.
A break-even analysis, profit-loss forecast, and cash-flow analysis. A business plan is essential when you plan to start out because it allows you to take a look at the business as a whole and create your strategies before you start operating.
2) Invest only with what you're willing to lose
A number of entrepreneurs often get tempted to dive in and put all of their life savings into the business, with the expectation that they will be generating profits soon. However, it should be noted that most new businesses don't actually generate profit early or in the startup phase; some businesses even get their return on investment months or years after.
Save up as much capital as you can and stick to your plan. Remember to only invest the amount that you are willing to lose so that you can still survive in the event your business doesn't take off.
3) Determine how you'll generate profit
The ultimate goal of putting up a business is to make profit. That said, it's important that you understand exactly how you're going to generate it.
Examine your overhead expenses and then determine how many products or how much sales you should be driving in to make a profit. In other words, do your break-even analysis.
4) Make sure you're protected
Small businesses usually are in the form of sole proprietorships and partnerships. Although these are the easiest to form, they also expose the owner to liabilities such as business debt and judgments. For example, when the business's money is depleted, creditors may come after the owner's personal assets (your life savings, your home - que horror!).
Consider forming a corporation of limited liability company (LLC). Although these two could come with quite a lot of requirements and a longer process than the previous two, these business structures will protect you, the owner, from personal liability.
5) Select the right tools and resources for the trade
In our previous post, we provided you with a list of tools and resources that can help you in running your small business smoothly.
Choosing the right tools and knowing how to use them to your advantage is essential in making sure that you or your staff are not running around doing all these different things - things that can easily be automated through a tool.
For example, when you're still starting, you will definitely need somebody to man the phones and take calls for you - but you don't have the resources to hire a 24/7 staff yet. With Teltik, we never let you miss a call. We offer a complete suite of tools that allows you to be available at all times and handle those important calls wherever you are.
Knowing this information saves you time and effort.
6) Be unique
Being unique in business doesn't only mean that you need to offer something that's out of this world, or something new and innovative (although that would greatly help!). Being unique can also mean having that competitive edge. Do your homework and research on what the market wants and how you can provide that. Once you've determined that, keep it.
Staying proactive helps in a lot of ways too, especially in this modern, fast-paced world. Stay on top of your game, be informed of what's happening, what's changing in your industry, and leverage that.
7) Hire the right people
As a startup, having the right people in your team can be of great help. Don't just look for people with the qualifications you need; also look for people who are motivated, creative, possess the right kind of personality, and an overall great fit for your business. Once you've found them, keep them and treat them well.
In conclusion, there is nothing "small" about setting up a small business. Just like any other venture, it'll require your hard work, determination, patience, and lots and lots of good vibes.
As a small business owner, you'll definitely need to be on top of things and be connected all the time - to your employees, suppliers, customers. Make sure you have wireless connection anytime anywhere. Take a look at Teltik's wireless business plans and see what fits your business needs and your budget.