Starting a new business can be thrilling. Sometimes you can get so excited about your new idea that you don’t want to take the time to do the necessary groundwork so that your business will have a solid foundation. Channel your enthusiasm into a few of these more mundane fundamentals of business so that when you begin to bring in customers you’ll be ready to handle anything.
1. Operating Capital – A new business is going to need money. Think about how you want to finance your enterprise before you begin making widgets or booking clients. Whether you use an existing savings account, a business credit card or a traditional small business loan, you need to secure funding first if you want your business to really get off the ground.
2. A Business Plan – Sit down and write out a solid plan for your business. Include plans for expansion and ideas for what to do if things don’t go as you expect. A good business plan is also helpful for securing a small business loan because it shows that you have thought the business through.
3. Plenty of Patience – A new business takes time to begin turning a profit. Quite a few tedious tasks have to be done before you can focus solely on your business, as well. Be ready to fill out plenty of paperwork and be prepared to wait longer than you might expect the orders to come rolling in.
4. Information on State and Federal Tax Laws – Find out what you need to do in order to comply with state and federal tax laws regarding your business. Make sure you know how much sales tax to collect and what kind of tax information you need to provide the government concerning your company.
5. Appropriate Licenses or Permits – Some businesses need special permits or licenses to operate legally. Check local laws to make sure you have all of the necessary paperwork in order so that you don’t have to face fines or other legal problems once your doors open. Be prepared to pay fees or work with an appraiser for some licenses and permits.
6. Product Research – Spend some time researching other businesses that are similar to yours. Find out how much they charge for the same products and services. Think about how you can be competitive in the market you are interested in. You might find that you need to adjust your original business plan. It is better to learn about potential problems in the market before you begin the business so that you can make changes without disrupting relationships with clients.
7. Willingness to be Flexible – No matter how much you research and plan for your business, things will happen that you do not expect. Be ready to roll with the punches and make necessary shifts when you have to so that your business can remain viable. Stick to your business plan as a general blueprint for your company, but allow yourself to make changes when the real world doesn’t follow the script you prepared before the business began operations.
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Don't Start a New Business without These 7 Essentials by Nancy