Thinking of starting a small business?
Before you even consider these 10 tips to starting a small business. The absolute most important thing to do is stay calm and neutral. It’s very easy to get carried away by excitement and ignore the in your face warning signs that something isn’t right.
With close to half of all new businesses shutting the doors after three years, it’s important to look at the signs and plan, plan, plan.
Why do you want to start this business? This really is the first question. Is it for social change, financial freedom, working around school hours, employment opportunities for under the under privileged or a service that’s not currently being offered. Be clear as to what you’re seeking from your business. It’s great to have passion about your product or service, but will it bring in the money?
10 Tips to Starting a Small Business
Tip 1) Choose your business name.
The name reflects not only your product but it also reflects you and your personality. Choose something with impact, stands out from the crowd, a bit quirky perhaps, a play on words or something that really resonates with you and design your marketing campaign around it.
Tip 2) Know your customer base.
A lot of small businesses are able to road test their product or service at markets. This is a fantastic hard slog method that allows you the opportunity to articulate your product concisely with immediate feedback. You get a clear picture of what your clientele looks and speak like. It shows you how big the market is, what your point of difference is and builds an awareness and community backing. Their feedback is crucial to your success, take it seriously, those customers can create 10 more based off your willingness to adapt to their needs, obviously within reason. The beauty of this is you get to learn about your product through your customers before you set up shop with large overheads.
Tip 3) Awareness of competitors.
Research similar businesses, visit their sites or stores and watch how they conduct themselves, market and ultimately sell their product. Watch their success and learn from their errors before they do and find your stand out quality that will gravitate customers your way.
Tip 4) Rules and regulations.
Discuss with TJD Accounting services rules and regulations for your specific business.
Tip 5) Budgeting.
Set up a business plan with goals, marketing initiative, research on your industry and a financial plan of 5 years. Double how much everything costs, including the cost of living, as this business needs to be able to support that. Double the length of time it will take to set up the business and halve the estimated income for a period of 1 year. If you’re still in front, then chances are you’ll survive. Before you jump head first into the business and quit full time stable employment, consider financing whilst your still gainfully employed.
Tip 6) Charging appropriately.
Your idea and product have to be solid and specific to be able to determine a price to match the product. If it’s worth $6 for a block of quality, velvety, decadent chocolate and you can guarantee it, then charge away. Try to sell your point of difference as it will produce your profit margin.
Tip 7) Marketing.
It’s one thing to stand in a shop or a Sunday market and sell your product and quite another to market it. People need to believe in the concept and feel attracted to the idea of having it in their home. Interest needs to be piqued and a call to action created. As part of your budgeting strategy, marketing needs to be on top of the list. You don’t have to spend a lot of money these days to get noticed. Social media is free, but If no one knows you’re out there, you can’t sell them anything.
Tip 8) Trusted advisors.
We can guide you to trusted solicitors, lawyers, brokers and other advisors that are necessary in your field. Spending money on the right advice, first time, will always save you money and headaches long term.
Tip 9) Sufficient insurance.
There are so many options out there these days, just click on the internet and everything’s at your finger tips. Take the time to research insurance, shop around, ensure you’re not underinsured and use your trusted advisors to help guide you.
Tip 10) Business mentor.
Ask for help. You’re new at this and don’t want to become a statistic. Be clear about what you need from your accountant, lawyer solicitor etc. and don’t be afraid to approach established businesses requesting advice. Use their experience to boost your business.
Establishing a small business takes commitment and courage and it’s definitely not easy. Think carefully about your approach and research thoroughly the fundamentals before you start.
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