Starting a new business is always exciting but comes with its share of caveats. You may start out with a fantastic idea, and not have the resources (or think you don’t), or perhaps you don’t possess the necessary skills in a specific area to continue your initial growth. Here are some basic tips to starting out a business that can help in almost all areas.
Many people want to start a business, but lack the financial means to do so. However, what many don’t know is the resources that are required may just be some paperwork away! Check your municipal, state and federal programs for funding. For example, Omaha Small Business Network provides micro loans of up to $50,000 to help small businesses start and expand.
Learn. When You’re Done, Learn Some More
Let’s face it, even the biggest know-it-alls never know everything. You probably will be lacking in certain areas of knowledge or skills. You can decide for yourself if you want to hire someone who fills a knowledge gap, partner with someone who is skilled in areas you are not or, the more cost-effective option, learn. It’s 2020. There is a wealth of information and online resources at your disposal, like the US Small Business Administrative and the Nebraska Department of Economic Planning.
Know Your Market
You don’t need advanced business acumen here, however you do need to know who you are selling products or services to. Research demographics in your area, look up what would be competing with your business. Conduct market research on your industry and talk to target customers to find out your business’ potential. Ask experts questions about launching a startup. Reach out to professionals that can help you with certain areas of business, such as financial advisors and lawyers.
Do you have competitors in the region? What are your ROI’s in the first 5 years? Can you do without paying yourself for the first year? You will need to factor in every business expense necessary to launch and operate. Some costs to keep in mind include your location, rent, supplies, marketing, and more. Imagine yourself with zero money. Zero. There is a high probability that this will happen. Some businesses won’t make it for the long haul, and just remember your missteps along the way for your next business venture. Balance your passion with wisdom.
Launching an unsuccessful idea is a reality for many entrepreneurs. Over half of new businesses fail within the first five years of opening. Don’t be a statistic. Learn, grow, and listen to others around you. Accept criticism. Expect the least, plan for the worst, under promise and over deliver. Some entrepreneurs fail because they quit their day-job and go all-in. Know what works for you in every capacity, build your business in stages and take it one day at a time.