Are you planning to start a business?. Congratulations!. It takes commitment, desire, and most of all the zeal and will to work. Starting a business is one thing, being successful in that business is another entirely, so starting a business is challenging, all that is required for a great success is determination and setting your priorities right. If you have a solid business plan and a great idea, it can be an incredibly rewarding experience.
If you’re ready to start your business, you have to take your time and study this incredible 17 ways to start a business
1. Advice & support: When starting a business, there is a range of advice and support available from government and other organisations. This includes information and advice on managing cash flow, stocktaking, and obtaining funding and training. This enables you to make all business decisions right and helps you avoid defaulting the law.
2. Attend any events happening near you: Small business workshops and seminars are run regularly in most areas across the globe that deal with issues such as planning, financial management, innovation, employing staff and exporting. You may also find it useful to attend networking events to help expand your business. By developing networks you can keep up to date on industry and local information, promote your business through new contacts and learn key skills from other businesses.
3. Do your research very well. You will most likely do a lot of research to develop an effective business plan, but there is more research needed to be done if you really want the business to be successful. Research on similar business ideas both in your location and outside. Join related industry or professional associations before you start your business to begin networking with others that are already old hands in the business. Since many of these groups have annual dues, make friends with other business owners and entrepreneurs who have been in the business and inquire from them if the merits or demerits of joining such groups.
4. Establish your business status: Decide within you and be sure you love when you are about to venture in. Don’t go into a business with the sole aim of making profit, if you lack passion or love for the business you do, it will come crumbling down before you.Be sure of the reason you want to establish a business, don’t just own a business because u see others do too, you are going to fail in that business.
5. Create a Business Plan: A business plan plays an important role in the success of your enterprise. As a new business owner, you must be familiar with your customers and the strengths and weaknesses of your competitors. Your business plan should detail this, as well as outline how your business can attract and retain customers, how it will compete in the marketplace, and what budget is needed to attain positive results. A business plan provides direction, keeps you on track and is usually a requirement when you seek finance. Depending on your business type, your plan could include an executive summary, introduction, marketing analysis, Intellectual Property (IP) strategy, operations plan, management plan and financial plan (e.g. costs and cash flow projections).
6. How to obtain Finance: Good financial management is critical to the ongoing success of your business. When starting out, you’ll need to know how much funding you need, where you can get it and how to manage your financial arrangements. Your business plan is also an important part of seeking business funding.
There are several sources to consider when looking for finance for your business, such as:
- •loans from a bank or other financial institution
- • using your personal savings
- • borrowing money from friends and relatives
- •chattel mortgages
- •finance leases
- •venture capital
- •government funding.
You should have some money saved up to start your business, but most entrepreneurs still seek financing from lenders and investors. If working with a lender, sometimes asking for more money than you think you need is best, since many entrepreneurs underestimate how much it takes to start a business. Investor funding is also smart because investors can bring their knowledge of business along with their investments. You can also borrow against other assets, such as your home. Always remember that when you borrow money, your monthly payments will kick in eventually. Make sure you set up a payment plan that you can afford.
7. Business Structure: Before starting a business, you should consider the advantages and disadvantages of each type of business structure and decide which best suits your needs. Your business structure can affect the safety of your personal assets and taxation obligations. A change in ownership of an ongoing business may require a new registration to be made depending on the type of structure the business operates.
Let me explain the most common forms of business structure I’m talking about.
- Sole trader – A sole trader is a type of structure where the business has no separate legal existence from its owner. As a sole trader, you’ll be responsible for the liabilities of your business. You need to report your business income on your personal income tax return, along with any other income.
- Partnership - A partnership is a type of structure where two or more people start a business and can legally share profits, risks and losses according to terms set out in a partnership agreement. You must lodge a separate partnership income tax return.
- Trust - A trust is a relationship where a business is transferred to a third party who has legal control and has a duty to run that business to benefit someone else. You must lodge a separate trust income tax return.
- Company - A company is a legal entity separate from its members (shareholders). A director of a company has additional legal and reporting obligations. You must lodge a separate company income tax return.8. Registering your business name: You’re required to register your business name unless you plan to conduct your business under your, or your partner’s, first name and surname, or initials and surname. Before you choose a business name, you should consider existing trademarks and the availability of a domain name, as it can be very expensive to change once your business is established because your domain name is your address on the internet and gives you an online identity or brand.
9. Have you considered registering your business name as a trade mark? A trade mark distinguishes your goods and services from similar offerings in the marketplace. Like a business name, a trade mark provides national proprietary rights that may be enforced, sold or licensed. It’s a good idea to consider registering your business name as a trade mark to gain ‘ownership’ rights to the name.
10. Have you considered your corporate governance?: Corporate governance is about good decisions being made by the right person and is not just the domain of companies – small businesses need corporate governance too. A good structure will allow you to ensure that the start-up of your business occurs smoothly, with minimal confusion about responsibilities.
Here are a few things to consider when setting up your governance structure:
- Create & delegate authority?: By setting up and communicating clear lines of authority, you can guide your employees in recognising the decisions that they can and cannot make.
- Develop clear policies & procedures?: Creating formal policies and procedures can allow you and your staff to make better decisions, while also adding legitimacy to a decision. Having an agreed process will allow you to regulate behaviour and reduce risk within your business.
- Manage employees & create accountability?: With good governance structures in your business, you can enable your employees to make better decisions and eventually take upon more responsible.
11. Work with some professionals. You may be an expert in your field, but there will be some aspects of running a business that you may not be familiar with. Although there are many bookkeeping and accounting software packages, it is sometimes wise to hire an accountant or bookkeeper. Preferably someone with an online accounting mba. If your funds do not allow you to hire an accountant early on, get advice from a professional certified public accountant when setting up your business for the first time.
12. Employing people: As an employer, you have certain obligations to your employees. This includes providing minimum standards of pay, conditions and entitlements. You’ll need to consider the type of employee and skills you need, which will affect employment conditions, level of pay and other costs.
13. Get legal & tax issues correctly. How will you structure your business? Will it benefit from being a C-corp, or an LLC? Does your business need workers’ compensation insurance? Does it need to be registered? What are your tax filing deadlines? Just as working with experienced professionals is important when running your company, sound legal and accounting information is essential to starting your business off right. Before starting a business, it’s important to make sure the required legalities are covered and that your formal business structure is in place.
14. Insurance: Insurance is an essential part of running any business. If you’re operating a small business, you may want more than just property insurance. Taking out the right insurance will help protect your business, minimise its exposure to risk and ensure you’re able to compensate others if you’re at fault.
15. How Do I Market My Business? When it comes to business, I always make sure I do more research online, read more business books and gather more ideas because marketing is essential for your business survival and growth. It’s all about getting your products to the right people. YOU should get this book Visual Marketing: 99 Proven Ways for Small Business to Market with Images and DesignWhy I recommended this book is because it would be a great lose after spending a lot of money setting up a business and you end up lacking good marketing ideas you should apply in-order to make your business a success. So With Visual Marketing, you’ll discover 99 powerful strategies for capturing the attention of your potential and new customers.
16.Work Smartly. Running a business takes a lot of time and energy, and the work will be a lot easier if you have a passion for it and enjoy what you do. Industry knowledge should be on the top of your list of requirements for small business success.
17.Ask For Help. The more support you line up when starting your business, the better off you will be in the long run. Having a family member or close friends online who you can brainstorm with can help take the pressure off of the everyday decisions of starting your business.
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