Starting a business is the new cool. Entrepreneurs and people who are sick working the old school nine to five are taking the risk to go into business on their own.
But, even though in the 21st century we’re lucky enough to have the whole world at the palms of our hands, it doesn’t mean that we shouldn’t plan everything thoroughly before starting a business.
In fact, we have to be twice more careful, given that information travels extremely fast and what today is a thriving business, tomorrow can be a non-existent one.
So, when you’re going into business, what are the things that you have to consider? How are you going to plan your business? What are you going to do if you have to sell your business?
In other words, there are a lot of unanswered questions that you’ll have to figure out in order to start a venture without worrying about every little thing.
You always have to plan for a backup, so an exit plan isn’t something to postpone when it’s inevitable.
Yep, like it or not, when you are looking into starting your own business venture, you will have to plan for an exit strategy as well.
Either close or sell a business, there’s no in-between. But the difference between a smartly built business and one that’s done by a person that for the first time in business is that the first one can actually recoup your investment.
So, when you’re starting your business, think for ways to build a brand that can withstand the test of time, then if you have at some point in the future to sell, or unexpectedly close down, you can recoup the investment.
Always keep an emergency fund in case you need cash quickly.
If there’s one thing that’s certain when it comes to running a business is that you will at some point or another need money quickly.
That’s why having an emergency fund you can tap in and have temporary access to money is so important. And don’t take money from the fund until you really have to. Buying something with that money that you don’t need to scale your business rapidly is a big no-no. One very easy way to make sure there is always cash on hand is to setup a separate bank account from your primary business checking. Set the money aside there and don’t touch it unless there is an emergency.
Analyze your industry and know it as much as possible before starting your business.
One thing a lot of new entrepreneurs seem to skip is to really analyze the industry. Is it growing? Shrinking? Is the competition so big you have no chance of going head to head with them?
You have to realize that being an entrepreneur may sound fun, but it’s really time-consuming and you have to do a lot of things that you don’t look that fun — like looking at industry analysis.
Know who your target audience is and always make sure you’re making them happy.
After all, everything you do in business is for your clients. So make sure you understand your clients and customers.
It will not only help you sell more of whatever you’re selling, but it will help you create a better product to sell.