How to Start a Business: the 5 Things We Bet You Didn’t Know
2nd of May
Getting a business idea is simple; all you need to do is find a problem in your niche and come up with a solution for the same. If that is the case, why do you many startups fail in the first place? Because knowing what to do and actually doing it are two wholly different things, and no matter how many MBAs you have to your name, there are a lot of things you don’t know that can cause a business to fail. Regardless of the level of knowledge you have, you will learn throughout the process of starting and running a business.
To help you start with the process, here are 5 things we bet you didn’t know are vital for the same:
Keep Your Concept / Message Simple
As mentioned before, most business ideas arise as a solution to an existing problem. When you end up with one such idea, it is important that you don’t make it way too complicated. Remember that as your idea expands, so will the expenses associated with implementing it, and marketing the concept also get tougher. Therefore, keeping things simple is the best way to go, for which you should streamline your focus.
Whether you are planning on opening an ecommerce store that sells exclusive customized merchandise, or to run a fully vegan bakery, once you know what your potential customers are willing to pay for, stick to it and avoid getting distracted branching out.
Obtain a Trademark
One of the most common mistakes that many new business owners do today is not obtaining a trademark for the name of their business. When you start a business, make sure that you choose a name that has an available trademark. How do you know this? Simple, you can search on the website of the United States Patent and Trademark Office, on their Trademark Electronic Search System (TESS), to see if a name has already been trademarked.
Also, remember that just because you don’t find a business name on the internet, doesn’t mean the name you have chosen is not trademarked; because, someone may have never used the name even after obtaining a trademark or it could be any other reason. So, in order to avoid wasting the resources you have invested in creating your business name and putting your business at risk, do proper research on reliable online sources, like the one mentioned above, and obtain a trademark.
Make Everything Legal
Choosing the legal structure of your business is another initial step you should take when starting one of your own. This will help formulate all the legal aspects, such as paperwork, your liability as the owner, taxes, and more.
In addition, you should also legally register your business with the government. This involves applying for required licenses, getting an employer identification number, and more such factors, all of which differ from one industry and state to another. Obtain help from a lawyer and accountant to have these procedures done; after all, having gone through all the hardships to start your own business, you wouldn’t want to be held up by something legal or administrative.
Starting a business of your own can be highly exacting in terms of finance and can be troublesome for you and your family. Therefore, being aware of where and when to spend your money is extremely important for a new business owner. While it is important to not overspend your money on unnecessary things, it is equally important to spend where it is needed. Of course, you can make money in your business only when you spend money; however, prioritizing your expenses is what you need to learn about.
For instance, spending $500 on an expert copywriter to write content for your website could be essential for marketing; but, you don’t really have to spend $20 giving out free stuff for the first purchase of every customer, and instead, you can limit the number to first 25 customers or choose a different strategy.
Consider Your Loving Costs
When people start a new business, one aspect that many forget about is their living costs. Yes, you need to think about giving your business a good start and everything involved in the same; but, what’s more important is YOU and your personal life. You have a life and that involves a lot of regular expenses, such as utility bills, mortgages, insurance, children’s tuition, and more.
You need to make sure that you have enough to spend on these essentials, and of course, cut down those extras you otherwise indulge in, like vacations and movie nights. In addition, you should also save some money for “just-in-case” scenarios, or emergencies. In some cases, you may also have to think about working part-time until your business gains some ground and you start making money from it.
No one said starting a business is easy. Use these tips and do what is necessary to succeed, one step at a time.