Four Steps to Starting a New Business
Starting a New Business!
Few people can turn down a fresh start, especially in business. There is so much to consider, experiences to absorb and things to learn that it is easy to get lost in the excitement of the newness. With all of this going on, how do you decide if the opportunity is worth accepting or not? There are four steps to starting a new business and they depend entirely on how much time you have and what time you have at your disposal.
Step one is to imagine the business as almost a pure cash- generating machine. This requires you to take a logical approach to it. Quickly sort through business opportunities that do not require you to spend a bunch of money otherwise you will have a lot of clearing out to do before you even start making a profit.
Step two is to weigh the options you have against the interest you need to pay. Some businesses with more potential for income than others do not require a lot of your time. You might decide to e-mail your list, for instance, that does not involve any direct personal contact. If it could be done for you, it could be done for you. Reportedly, such businesses, while transforming into financially sustainable businesses, are also noticeably less successful than others that do not require personal contact as an added benefit.
Step three is to weigh the options you have against all of your other financial responsibilities. For example, a beloved song from a friend’s mother may be perfect for you, but taking a vacation or going out of town, alone for a dinner party, would cost more than $20,000 for your time and all of the joy it would give you and your dog. Making no money doesn’t pay the mortgage.
Step four is to decide which of the frighteningly Madison Avenue-like ideas sounds best. You may need to set a budget for your business as well as the out-of-pocket start-up expenses. For those taking classes for the business that actually start the business they are building, you may want to use that to determine your own limiting factor. The budget and the out of pocket expenses are going to limit your ability to buy advertise, pay your bills and otherwise run the business.
Reflect on your past experiences in your business. Did you cross a line where the direct contact was a necessity or if it wasn’t something you either could handle now or would have to be paid for later? If you were a terrible salesperson and loathed sales, do you love fluffing new sales metrics and stats every month? This means that you will have your work cut out for you marketing-wise, if you play to win.
If you only need a little work, probably no down time and a pittance in start up expenses, a franchise, forming a LLC or other type of business is a good choice. The business world has changed in recent years and it’s not as easy as it used to be to be. It takes more than written business plans and more. If you have aspirations of owning your own business, take care that you do not focus on doing it all on your own. Hand that job off to someone who is your partner in success.
If, after considering all of the possible business opportunities with which you have been exposed and remaining fascinated, a business idea is time consuming, requires little or no money and simply crosses your idea threshold, you should probably keep looking for one that’s better. This article can help you in your quest.