Wednesday, 20 January, 2021

12 Things to do before starting a business want to share you 12 Things to do before starting a business. Read.

1. Get Clear About Your WHY?

Why are you starting this business? How do you envision your life now as a business owner? Have you looked into starting a business just because you hate your job or because you want to be the next tech star to cash out for big bucks? You can always get a new job. And more wannabe tech stars flame out than get a big payday. But if you are starting a business because you have a purpose you want to serve, want to leave a legacy, or fill an unmet need in the marketplace, then these are the reasons that will help you survive the hard days in business. Develop a vision board for your new dream life as a business owner. It will keep you focused on why you are working so hard.

2. Look at Your Finances

The money to start your business is going to come from your personal resources. So before you start your business, calculate your net worth, pay off credit card debt, get your credit score as high as possible, and look at all of your available cash reserves such as savings, your 401K or home equity. You need to have an emergency saving account for your household, money to live on, and at least the first year of working capital for your business.

3. Research the Business Opportunity

You might be excited about a new restaurant concept, but have you ever worked in a restaurant? Perhaps you should go work part-time in a business like the one you want to start so that you can learn the real deal about running one. It will also help you determine what skills you need to have to run your business. You’ll need to know the industry you want to join. Don’t make the mistake of thinking that buying a franchise will save you. They are not businesses in a box. It’s best to have business experience before starting a business.

4. Research the Market

You want to make sure there is a real business opportunity for you, so that requires research. Here are a few key questions that you need to answer. Who are the dominant players in your market? Who is going to be your target customer? Who is your competition? What are the current price points? What are the industry trends? What web marketing strategies are your competitors using? What are the typical sales cycles? These answers will help you make important decisions before starting a business.

5. Develop a Customer Profile

Once you identify what’s going on in the market, you’ll need to determine your target customer. Once you do that, you need to go and talk to them. Ask for opinions on how they currently get their needs met. Ask about their budget cycles. Call competitors and ask for a quote. Go online and order a competitor’s product and return it to see what their customer service is like. Use to search competitor websites to see what keywords they use and if they use paid ads. Once you have this information, you can finalize your niche and your customer profile.

6. Find an Available URL and Name Your Business

Your business will feel very real once you name it. You want to be cleaver, but it’s not a good idea to use a word that is hard to say or spell. You need a name that is memorable and no more than three words. Use alliteration if you can. Try to avoid unusual spellings on common words or using numbers in place of words. You will be seen immediately as a small entity. You want to build a brand, not just establish a business. So it’s best to invest in a professional logo for your business too.

7. Establish Your Legal Entity

You need to incorporate your business as an LLC or S-Corp. Do not start your business as a sole proprietor using your personal social security number. You’ll open yourself up to personal legal liability, and you won’t look professional.

8. Secure an EIN Number and Business Bank Account

Once you establish your legal identity, go to , and apply for an Employer Identification Number (EIN). You need to keep your business banking separate from your personal banking, so once you have an EIN number, go to a bank and establish a business bank account. I suggest using a different bank than your personal bank to resist the urge to comingle funds and also to protect your personal assets.

9. Develop Your Signature Product or Service

You need to test the market. So now it’s time to develop your test product and drill down your list of core services. If you are making jewelry or a food product, you’ll need samples. Find a maker space or commercial kitchen and make a prototype or a batch of your product. If you are a starting a service business, develop your one pager that tells people who you are and what you do. Be sure to highlight the benefits of working with you. You might want to develop products at cost for your first few customers to get high quality samples and great testimonials as well.

10. Set Your Price

You need to set a price, but you can’t do that until you understand all your costs. Looking at labor, materials, and shipping costs are easy, but you need to include a percentage of your overhead and admin cost and your profit margin. If you don’t know how to calculate this, get an accountant to help you. You can also find a SCORE chapter and get a mentor to help you establish your business.

11. Write a Business Plan

Now that you have tested the market, built a basic customer profile and competitive data, made a few sales, and developed pricing, it’s time to develop a business plan to turn your idea into a real business. Go to to research sample business plans or use software to complete your business plan. It might even be helpful to sign up for an
online business plan course.

12. Launch While Working

Don’t quit your job to run this business, yet. It takes 12-18 months, typically, to break even, so you won’t be able to cover even a portion of your salary for a while. You need to learn the ropes of running your business while you are still getting a paycheck from someone else. Unless you are directly competing with your employer, run your business on your nights and weekends. Request telecommuting or flex hours so that you can make business calls during the day. Be a smart side hustler. Never use company resources for your business; that’s a fast way to lose your job. You can sell to your co workers, though. They might be a great source of feedback or referrals.

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