Starting a small business (start-up) is the beginning of a challenging and exciting period in your life. Sometimes it can be overwhelming when you find yourself engrossed and dealing with licensing, leasing, insurance, and marketing.
Read below to help you decide if you are ready to go through the early stages of establishing a business.
Going into business for the first time is a life-changing experience, both professionally and personally. It will also involve a significant financial commitment.
Whether your business succeeds or fails depends on many things including your abilities, initiative and capacity to work, as well as the business and economic environment.
Assess if you are ready and consider the following questions:
- Do you have enough experience in your chosen industry?
- Do you like challenges?
- Are you disciplined and motivated to keep going during tough times?
- Can you make informed decisions?
- Are you willing to work long hours and/or on weekends?
- Are your personal savings or other source of income sufficient enough?
- Are you open to develop your skills and knowledge in areas useful to run a business?
- Are you prepared to take the risk of not succeeding and losing the money you have invested?
Market research is a valuable tool for all businesses. Conducting market research and obtaining statistics can help you understand your customers and the marketplace, as well as give you an insight into your competition.
It’s important to look critically at your business idea to see if it’s worth investing your time and money. This could involve determining the strengths, weaknesses, opportunities and threats (SWOT analysis) of your business idea.
Once you have determined the market for your products or services, you need to consider the financial requirements to make it attainable.
You should also consider any regulatory requirements, obtaining intellectual property, and your marketing skills.
A well prepared business plan can be the key to your success and save you time and money in the long run. It can help secure funding, prioritise your efforts, and evaluate opportunities.
Your business plan needs to include the following: business profile, vision and mission, market research, operational strategy, product and/or services, marketing plan, and financial strategy.
You need to have a better understanding on how your business will operate. Have a feasibility study to set your expectations in terms of success. Be prepared to invest time and money into the business to get it up and running.
Business planning is a continuous process which requires regular reviews and update especially when circumstances change.
Once you have established the viability of your business idea, you have to choose the right business structure for you.
Your business structure determines your tax liabilities, potential personal liability, ongoing costs, and the volume of required paperwork, etc. The most common business structures are the following:
- Sole trader — an individual trading on their own.
- Partnership — a business is run together by a number of people or entities. It’s not a company.
- Company —the owners and a legal entity are separated from each other.
- Trust — an entity holds the property or income for the benefit of others.
- Co-operative — an at least five member-owned business organisation.
- Incorporated association — an entity usually established for recreational, cultural or charitable purposes.
There are legal obligations associated with starting a business which vary depending on its nature. These include registrations, licensing, leasing premises, employing staff, insurance, and taxation, among others.
Note: Before you start your business, make sure you understand your legal obligations to avoid any fines or penalties. Seek legal and business advice.
Surround yourself with trusted and reliable advisers who can help you with start-up issues and then assist you as your business develops.
An accountant, lawyer, or industry association may be part of your support team.
Anticipate that you will spend heavily on marketing as you launch the product or service. Marketing activities, whether it’s traditional or digital, need time and money.
Traditional marketing can come in the form of print ads, billboards, and commercials on TV and radio. On the other hand, having a website and building a brand through social media are strategies in digital marketing.
Investing in brand building translates to a better reputation in the market and a differentiation from your competitors.
You will need to work out whether you can afford to start the business and how much money you will need (start-up costs). You will also need to assess how you will access the money to fund your future plans.
If you are considering to obtain a business loan, you’ll need to complete some financial forecasts beforehand to provide to your financial institution or investors.
Start-up loans from Cigno Business Solutions
Looking to get a start-up loan is common during the inception of any business. Even if you are adapting a simple business model, money is a prerequisite from the get go. Investing in the lifecycle of your products and/or services is crucial while emerging and growing into a business.
Cigno Business Solutions finds you unsecured business loans in Australia for quick delivery — giving you access to the much-needed funds for your start-up.
Get in touch with CBS today or apply here and they’ll be more than happy to help!