The pandemic is starting to slow down, but we still see how big its impact has been, both on our personal and professional lives. However, it looks like the pandemic hasn’t made people any less ambitious. The human mind will always prosper, it seems.
While many people expected the number of new businesses to decline, the opposite has happened. Last year, about 4.4 million new businesses were started in the United States alone. Something like this happened for the first time in modern history.
The number of new businesses generally decreases during a crisis. But not this time. And at first glance, this trend shows no sign of stopping. Are you one of those people looking to start a business? If you are, do we have a treat for you today …
Let’s take a look at how you can successfully start and build your first business.
What you need to do before starting a business
The first thing you need to realize is that starting a new business is a huge commitment. You must understand that it will take a lot of time, energy and resources to develop a successful business. A few months will not be enough.
It will likely take a few years to build a sustainable business. Here are some of the challenges you will have to overcome:
- Find a good product or service
- Have a strong vision and a good plan
- Find the right employees for your business
- Manage your time efficiently
- Know when is the right time to pivot
Another thing that you need to think about early on is money management. It’s essential to make sure you don’t run out of cash before the launch. This is why you should hire an accountant for your business at the start of the process before the money even begins to flow.
A good accountant will be able to tell you about unforeseen expenses and help you manage your money the right way. With the right information, an accountant can interpret your financial data and help you make business decisions.
Invest in accounting and bookkeeping services may seem like an unnecessary expense while you are still building your business. However, by investing in it early, you don’t have to worry if the IRS is knocking on your door at some point. Plus, there are plenty of cost-effective accounting options that won’t make you drain your wallet.
Also, don’t forget to come up with a catchy and original name for your business. Here’s what to think about when choosing a name.
- Avoid choosing names that are difficult to spell
- Search your name
- Make sure no one has copyrighted the name
- Get a domain name for your business
- Make sure you have a .com extension
With that, you can move on to the next part …
How to manage all the legal aspects of a business
Once you have the right idea and the name come up, it’s time to start taking things more seriously. This means that you then have to deal with the legal aspects of your business. If you don’t do it on time, you can end up paying huge fines down the line.
Many businesses have failed because of this. You don’t want to end up as a victim of the IRS, do you? We didn’t think so.
To get started, you need to choose the type of business you want to start. Our advice would be not to start a “sole proprietorship” because you will be putting your assets at risk if you fail. You should start your business as:
- company S, which will offer you favorable tax treatment, or
- C corporation, what most capital investors want to see.
Even though starting a company is not as difficult as it seems, you should still consider consulting a professional. Not only will they help you with this, but also with the next step.
What should be your next step, you may be wondering? Well, you need to create a well-written business plan. One of the mistakes many entrepreneurs make is starting a business without thinking about many aspects of their business.
When choosing a business consultant, just be sure to work with a legal expert who knows your industry. For example, if you have to write a business plan for a restaurant, you need a consultant who has worked with many clients in the food and hospitality industry.
The last big legal aspect we should talk about is that you need to define your relationship with your partners early on. By not coming to a written agreement on the type of relationship, you risk getting into a huge legal battle at some point in the future.
Here are some terms of the agreement that your written Founder’s Agreement should address before moving on:
- How will you distribute the equity of the company among the founders
- What is the percentage of ownership
- What will be the role and responsibility of each founder
- What happens when one of the founders decides to leave
- How long each founder will have to commit to the project
When you deal with all of this, you are ready to start thinking about …
Start a business and maintain success
Once all the technicalities are ready, you need to start thinking about building a brand out of your business. You need to grab the attention of consumers, turn them into customers, and build a sustainable consumer base of loyal supporters.
Here are some points you should pay special attention to:
- Logo and visuals: Your brand needs a visual identity. This way, customers will be able to recognize your brand right away. Invest in a good, memorable logo and carefully choose the colors that will represent your brand.
- Your business website: Create a website or Web application which will contain all the information that your potential customers would ever want. Make it visually appealing and easy to navigate. Do not be afraid to spend money on it, as it will be very profitable.
- Social media platforms: Establish a presence on social networks. Find out which are some of the most popular platforms among your target audience. Once you find that out, start investing the time and money into campaigns on those specific social media networks.
- Customer relationship management : Get a CRM solution that will allow you to collect, analyze and use customer data to maintain a good relationship. You can also use CMR to market new products and services to your customers.
Speaking of planning, don’t forget to create a marketing plan that goes beyond your launch. Yes, you need to market your business launch, but you need to think beyond it. Think about where you want your business to be in a few years and what customers you want to reach eventually.
Finding out how to reach new markets and new customers will make it much easier for you. Marketing is just as important as your business, your service, and your product. That’s why you need to be careful enough from the start.
What to keep in mind
This is what you need to do to successfully launch your first business. There are a lot of moving parts, but we can boil down to three main stages:
- Take calculated risks and think carefully about everything before you start
- Handle all legal aspects with care and get professional help
- Create a game plan and stick to it for continued success
Taking the right steps will ensure success. However, keep in mind that your launch and first sales are just the beginning.
You never know when another crisis will occur. If you want to stay afloat during tough times, you need to focus on growing your business at all times. It won’t be quick or easy, but you always get what you put into your business. Stay strong, persevering, and patient.
Sooner or later your business will become bulletproof.
Interesting related article: “What is a startup?” “