Starting a successful business requires a tremendous amount of time, energy, and in most cases, money. So it’s important that you really enjoy what you’ll be doing. The majority of startup businesses struggle during the first few years so you’ll need that passion to get you through the tough times.
Here are some other things to consider when starting a business.
Have a solid, written business plan
Most business owners spend months or even years mentally planning for the day they launch their new startup. But putting everything down on paper will help you identify opportunities and potential pitfalls you may not have considered. When creating your business plan, it’s a good idea to plan for the worst case scenario to make sure your expectations are realistic.
Hang on to your “day job” for a while
It can take months or even years before your startup company actually makes a profit. If you’re currently employed, it’s a good idea to hang onto your current job for a while to keep money coming into your pockets until your new venture takes off.
Arrange financing for your new business
Even established companies experience slow periods and not having a financial safety net can be disastrous. Startup companies have the additional problem having no credit history which is an essential requirement for traditional lenders. Some private investors may be willing to lend you money based on the viability of your overall business model, but this too can take time and may come with prohibitively-high interest rates or other requirements. Invoice factoring is a safe and effective alternative to traditional bank financing. Factoring provides your business with almost immediate cash, and approval isn’t based on your creditworthiness.
Don’t fly solo
Starting a new business by yourself can be a lonely and frustrating experience. Having a partner can help keep you focused and motivated. And as the old saying goes, “two heads are better than one.” Having a partner or small team who are invested in the success of your new venture can also help keep you honest about your expectations and provide you with encouragement when you experience the inevitable doubts and misgivings most startup business owners experience early on.
Develop a client base prior to launching your new business
Remember the film “Field of Dreams” about the baseball fan who heard voices telling him “If you build it, they will come”? When it comes to building a customer base, things typically don’t work that way. Launching your startup business without customers can be a recipe for disaster, so don’t wait until after you’ve launched your business to line up customers or potential customers. It’s better to have eager customers lined up, eagerly awaiting the launch of your startup than to try and land them once your business is up and running.