5 Key Things You Need to Do Before Starting a Business

5 Key Things You Need to Do Before Starting a Business

Out of the 627,000 new businesses that open each year, approximately one-third of them fail within two years.

This information isn’t to deter you, by any means. Rather, it’s to highlight how essential it is to learn everything you can about starting your business right — before embarking on the venture.

Here are 5 things to consider before you get the ball rolling, to increase your chances of success.

  1. Understand the Market

Once you’ve identified your skills and time available, you can decide which market you’d like to enter. Then, you’ll need to spend as much time as possible researching this market.

Always remember: you can’t do enough research. Ever.

There’s always more to learn about your target market, competition, and data about your products or services. You also need to consider whether you will file taxes as a self-employed person or file as a business.

Also, consider the timing of starting your business. It might be tough getting initial sales for a swimsuit company in December.

Once you have a solid understanding of the market you’re entering, you’ll want to create a message that stands out amongst your sea of competitors.

  1. Emphasize the Message

Without a concise, cohesive, and memorable message, your business won’t stand a chance.

To create such a message, consider why you’re starting up and what good your business serves others. What makes you different from businesses already in the market?

Once you answer those questions, you can portray your message through branding. This includes creating a logo (which you can do for free using applications such as Adobe Spark Post), a slogan, and aesthetic elements to tie everything in.

Your customers should be able to identify what your business stands for based on the way it’s presented through branding.

You should complete your comprehensive message and branding plans before you finish your business plan. This allows you to be clear in the business plan about your goals and competitive advantage.

  1. Don’t Have Tunnel Vision About Money

Yes, you need capital to get things going. If you need to rely on loans, create a plan to pay them back in a timely and responsible manner.

Aside from financial aspects, there are other resources you need to accumulate to start your business. Here, we’re mainly talking about human capital.

It’s wise to find advisors in the field to guide your decisions. They’ve been in the position you’re in before and can help you avoid critical mistakes.

Additionally, you should consider outsourced help to ensure the success of your business. Depending on your business, this may include outsourced help, employees, or accountants.

  1. Be as Organized as Possible

Organize anything having to do with the operation, including preliminary research. Make it so that your data is easily accessible.

The more organized you are, the more efficient you’ll be. Then, you can work efficiently, save time and money, and avoid losing important documents and information.

On the note of documents, you, of course, cannot forget the logistical aspects of starting your business.

  1. Create Your Business Legally

After deciding your mission and resources, you can choose the best business structure for your needs.

Then, you’ll have to take care of logistics, such as:

  • Business registration
  • State and federal tax identification numbers (also known as employer identification numbers)
  • Bank accounts
  • Trademarks, copyrights, patents
  • Insurance

If you don’t follow legal and ethical guidelines for your startup, it will result in business failure.

Be Thorough When Starting a Business

You can’t go overboard when preparing to start a business. Do your research, ask your questions, and get organized.

Don’t be afraid to ask for help or rely on external resources.

Throughout the process, make sure to keep a work-life balance. Read more posts on our blog to help. You may find market research here, too.

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