That sounds so exciting, and it is, at first. You’ve got this great idea and you’re ready to offer yourself to the world of those many customers and clients that are willing to pay. Wow! The thought of actually being paid for an idea you came up with! That. Is. Freakin’. EXCITING!!!!
Of course, your next flurry of thoughts is about getting started as soon as possible! You may find that it is in these series of thoughts that you get overwhelmed and may even lose motivation because of frustration and not knowing exactly WHERE to begin, or even HOW to begin.
Starting a business, no matter how good the idea, is a risk and as such, you need to make sure you completely understand the risk you’re taking. Creating a plan and thinking through your business set up, step-by-step, are always good things with which to begin and they can increase your chances of success.
Where do you begin?
Before jumping in, there are some very important things you should thoroughly need to consider. For instance, what exactly are your goals? Is this business one you want to start off as a part-time venture that will eventually grow into a full-time gig? What about your ability to provide the product and/or services? Can you do it alone, or will you need help? Then, of course there’s the big consideration – money!!!! Do you have the money you need to start your business, or do you need to consider outside financing and locating investors? What is profit-and-loss? How long will it take for you to see a profit? Is your mind spinning yet? I know my head is and just from writing this. Bottom line, your product or service idea may very well be the ‘best thing since sliced bread’, but there’s much more to business than just the product or service. Recognizing these areas early on allows you to determine what areas you can master, handle and where you need help. There may be several areas in which you’ll need to get outside help, but that shouldn’t deter you from starting your business. No one can do everything and certain things may not be in your “Zone of Genius’ or even your ‘Zone of Excellence, and THAT’S OK!!!! In fact, it’s great! Now you know where your weaknesses lay.
So, let’s start here. I always find that collecting my thoughts in one book or file always helps. Grab your business journal and consider the following:
- Write out your product/skill
- What makes your product unique? Your delivery? Your branding? Be exact.
- Who will need your product and why would they purchase it?
- How will you market to your potential customers?
- Will you use your own money for start-up or will you need a loan?
- If you need a loan, what are the requirements, and can you qualify?
- What’s the best way to mitigate your losses?
- Will you need employees or Independent Contractors?
Whew! That may seem like a lot but it’s a great beginning exercise to think about and write out. Be prepared to make lots of changes and for your vision to evolve several times. The pages don’t need to be neat….in fact, I would say if it is neat, you haven’t thought about everything completely! Mark up that journal page and mark it up more as you mesh out your business vision and cover as many bases as you possibly can.
Most of my clients are starting their businesses from scratch and there are many ways to do this. You can have an actual location or start by putting together a website. Whatever the scale, once you begin, YOU HAVE A BUSINESS! It’s your new bundle of joy and you need to protect it! One of the first items I recommend that my clients address is business formation. Setting up a business is a lot of work but forming the actual business is no where near as complicated as most people think. But it is OH SO NECESSARY!
What is your business name? Is it available (meaning, does someone already have that name for their business?)? Come up with your name and then do a comprehensive search to make sure no one has claimed that name for their business.
What type of business is it? Does it require State or Local licensing? These are all things you can search on the internet or by calling your local government permits & inspections department (it may be called something else but there is definitely one department that handles these things).
After you’ve got those things worked out, you’ll want to seriously consider incorporating your business. No, it’s not legally necessary but I would argue it is financially required. Why? Because you need to protect your personal assets. I know too many people who have failed to set their business up as a separate entity and put things such as their homes, cars and retirement at risk. No one should do that! Incorporations are not just for large companies like many people think. Not only can it help you to protect your personal assets, it can also make it easier for you to get a business loan, should you need one. Start at the beginning keeping everything separate.
This is a good time to begin thinking about creating a Business Plan as well. Will you be able to develop one yourself or should you hire someone with that talent to help you?
I’ll stop here for now and let you consider these things (which is a lot). There is so much more to come but this a great start. I’m very excited for you! Don’t forget, get a brand-new journal, a glass of wine and begin writing out your ideas and collecting your thoughts in one area.
Until next time…..
Crystal