Are you one of those people that believes starting up a business is easy and a walk in the park? Here I am going to tell you exactly what I think the 3 most important things are when starting up.
Talking from my own experience I can tell you that setting up your first, second or third business is not easy. There are many things that need to be considered before such as the market, competition, consumers, materials, financials all these are important in order to make your business run, without these your business will not work.
First things first, it’s good to get a business plan set up as if your needing a loan from somewhere e.g. the bank, this is what they will ask for. A business plan contains every single little bit of information about your company, how it will run, financials (targets, profit & loss, incomings, outgoings, forecasts), goals/targets, product/services, market, competition, operation and logistics and a backup plan. This shows the lender you know what you want from your business and back up plans are there if they are ever needed. A business plan can normally range from 20 – 100 pages long, detailing all aspects of your business down to the final t.
Secondly, you need to do your research, you need to check that there is nothing else like your product/service out on the market already. If there is, you need to show your consumers and buyers why yours is better than ones already out there. Take a look at your competitor’s information, website, products and social media all of these will play a vital part in their advertisement and brand awareness. Come up with a solution and make yours 10 x better. An easy way of comparing your competitor’s products/services is by creating a table with all your competitor’s information; name, product, prices, stores/sales, quality, advertising, images, strengths and weaknesses. This will allow you to compare your products/service to theirs in a more specific way to get the best out of your research.
The last piece of advice which is very important when starting your business is to know your financials making sure you have enough money to start your business, if you get a loan you need to make sure you can pay it back. Make sure your cash flow is correct as it is a vital part of your business that shows you’re ingoings and outgoings (including profit and losses). It’s a good idea to set financial targets and budgets that you got to hit or meet in order to make the money you need to. Money is what makes your business run therefore meeting the targets set and sticking to your budgets means your business can keep running the way you want it to.
If you are starting up a business and after reading this blog, looking for advice you can sign up to my free business advice on this website and gain all the information you need to know.
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