There are many people who have a pipe dream in mind when it comes to starting a business, but not everyone knows exactly what it takes. Plenty of people are prepared to put the hard work in, but before they can, they must learn about the ins and outs of starting a business.
The bad news is, it’s more difficult than you may think. The good news, though, is that it’s definitely achievable if you put your mind to it. Before you quit your day job and give everything up for your entrepreneurship idea, let’s take a look at eight things you’ll need to start your own.
1. A Refined Idea
It’s all very well having an idea that you’re excited about and that you want to turn into a profitable business. However, ideas don’t pay the bills – products and the need for that product in the market do.
One of the most important things to do when you’re starting a business is to refine your idea. If it’s too general, then it’s not going to be received well. The more you narrow it down and refine your niche to only cover a small percentage of the market, the better a chance you’ll have.
At the end of the day, you’ve only got so much time to put into your business. If you make your idea too general, your entrepreneurship goals will become unachievable.
2. A Business Plan
When it comes to starting a business, staying organized is key. Once you have refined your idea and know what kind of entrepreneurship you want to grow, you need to stabilize it with an adequate plan.
You can start thinking about what your business plan looks like with these questions: what is the overall purpose of the entrepreneurship you’re starting? Who is your target market? What are your day to day and big-picture goals?
All of these questions can be answered if you write up a concise, realistic business plan.
3. Established Finances
Nobody got their business idea off the ground without some initial capital as a buffer. While you may think that you can get by with your day job, this is simply unrealistic.
Most businesses take an initial cash injection to get going – some more than others. Whether this is in the form of existing capital that you’ve saved up, a personal or title loan, from 1800Car-Title® or a grant that you’ve received, having your finances in order could be the difference between success or failure.
Starting a business always costs more than projected, so make sure to be generous with your finances, and allow for unexpected scenarios.
4. Register Your Business
Unless you plan on keeping your business under the table, we highly recommend that you get it registered before you start operating. To become officially recognized as a business entity, you must register it with the IRS and the government.
All you’ll need to do is register the name of your venture, whether this is your name or a name that you’ve come up with. With this in mind, you may want to consider looking at trademarking your business name for an additional layer of protection.
With the IRS, you will need to make sure that you receive an employer identification number. It’s tempting to do things on the side, but at the end of the day, it’s going to benefit you a lot more if you make everything official.
5. Get Insurance
Remember when we talked about the capital you have saved up or the title loan you’re going to get out to fund your business? When you’ve got more money going out than coming in while you’re just getting it off the ground, it’s essential that you cover yourself with insurance.
There’s no knowing what might go wrong. From customer lawsuits to property damage and even theft, there are many unexpected circumstances that may arise from beginning a business. The more prepared you are, the less it will hurt.
Insurance is one of the best ways to make sure that you’re prepared for anything.
6. Choose a Good Team
This is perhaps one of the hardest things to do that you need when you’re starting new entrepreneurship. In business, it can be difficult to know who to trust. Even if they’re close friends or family, people can be different or change when it comes to dealings in entrepreneurship.
With this in mind, it’s essential to be wise about who you choose to bring on. You may want to take this step slowly – you’ve got all the time in the world to scale your business at some point. In this initial stage, we recommend being cautious and only taking on what you need, so that you can spend more time building good business relationships that are going to last a long time.
Hari Ravichandran Founded Endurance International Group with only $8K, and he always emphasized the importance of cultivating a good team and a proper company culture.
7. Do Your Research
Just like with your idea, the more refined your target market is, the better you’ll be able to sell your product. One of the best ways to get to know the people you hope to sell to is to do some market research.
This involves checking out the competition and seeing what their target market looks like. From purchasing patterns to buying history, the more you know about your potential customers, the better you can serve them and create a product they’re going to love.
Naturally, before you order a large shipment of your product to be manufactured, you have to make sure that you’ve got the customer base. Advertising is one of the first things you need to do to make sure that people are aware of your brand.
Luckily, there are many different ways to do this online these days. Social media is a great way to get your brand connected to the right people. You could even consider paying a larger brand or an influencer to promote it, too.
Starting a brand new business takes a lot of hard work, dedication, and persistence. It’s hard, but not impossible. Remember to check our list of the eight things you need when starting a business off before you dive in too deep.
9. Pandemic Proof Business Online
In this day and age of the global coronavirus pandemic and the looming economic recession it seems to be causing, you may want to consider your options for starting a business online. Transcription and translation services are among many popular options for online businesses, with enough popularity to ensure that they are and remain pandemic-proof and even recession-proof with the proper planning.
As more people are finding themselves self-isolating, social distancing and even in full quarantine, there is a major upheaval resulting in many established “brick and mortar” businesses moving online. Again, language service providers are ideally situated here in this day and age of the global epidemic.
Related read: Doing Business Under COVID-19: Going Online to Weather the Storm
There are of course additional benefits to an online business as well, including not having to purchase expensive equipment for each employee, the ability to contract employees who then become responsible for their own taxes and accounting, and of course, their ability to work from home, preventing further transmission of the global COVID-19 outbreak.