Having a business of their own is everybody’s dream. But due to financial problems many people prefer to start a small business. Small business has many advantages such as it can be started on a part-time basis, with a small capital investment, in a small area and with less manpower.
But there are certain things one has to take into account while starting a small business or the business may suffer a great loss.
Some of the things one should take into account while starting a small scale business are given below:-
1) Decide what will you offer?
The first and the most important thing you got to do is decide what will you start the business of? This is quite difficult job so you can see which business nowadays are on a rise or in which side of business do you have great ideas. Once you have decided you are all set to go.
2) See current market conditions and your competitors
Firstly, do a survey about what the current market needs the most. See whether you have the capability or enough resources to fulfill the business’ needs. Also, see the current status of your competitors. Think how you can offer something different from your competitors.
Think how you can beat your competitors while offering better services at low cost and by maintaining your profit. You can face some difficulties while doing this but ‘Where there is a will there is a way’.
3) You need to do some things before starting a small business
You always have to make preparations before starting your business. You will have to answer the phone call from clients, check your mails on time and answer them, set appointments with your clients, order the necessary supplies, etc. You need to do these things otherwise there is no point in starting the business.
4) Make arrangements for a office
You will need to open an office for your business. You will have to make the necessary changes in the office such as lights, chairs, furniture, etc. This will help to attract clients. The better the office the better impression your have on your clients.
5) Legal procedure
You will have to overcome many legal procedures to start your business. Such as a license for some business, if you take a loan then loan procedure, etc. You should be ready to face adverse conditions and should have a lot of patience that will help you a lot.
When you start a business you and your family have to face a large number of problems and risks. To serve the purpose you will have to get insurance such as small business insurance. If you will have to travel a lot, have a lot of stress or other things in your business you may take a health insurance.
7) Legal types of Business Organization
In this you will have to decide which kind of business you have to start like in partnership, sole proprietorship, a limited, a limited liability company, corporation, etc. You will have to study legal forms of business; as in many countries government takes different taxes on different type of companies.
8) Start-up costs
You will have to determine your expenditure on starting the business. you will have to spend on construction, furniture, lighting, machines (if needed), etc. You will have to hire a accountant, a lawyer, a specialist, and many other people. So you will have to figure out your expenses and ways to reduce them.
9) Consider your funding option
Do you have some source for money until you start earning in your business? Or will you have to sell some assets, or break your savings account, or other things? Is there any other person in your house who will support in earning or will you have to seek for a loan? All these things will need to be taken into account while starting the business. You will need to think of your sources of money. So think twice.
10) Family support
You need to earn your family’s support while starting your business. When your family supports you, you get encouragement and this helps you. Discuss with your family the issues in a business and ask them whether they are ready to make small sacrifices for your business. If you plan to start a business with a family member distribute the work.
None of these is more important than others. All have to work in tandem to make your dream come true.
This post is sponsored by Capital One, but thoughts expressed here are mine.
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