Every successful business has started with an idea. So that is key to getting your business off the ground. The first thing needs to be the idea. Then you can put it to the test and make a plan for how things will run. You can try out the idea with some market research and get feedback from your ideal customer base. But again, this can’t be done without your idea.
Then you need to think about why you are starting your business. Are you hoping to just work for yourself and get out of the regular working routine? If you are hoping for an easier life, then it won’t be like that for a while. When you are in charge, the pressure is on. Being in charge does mean that all the rewards are yours too, though. So there are swings and roundabouts to owning your own business.
When you have analyzed your idea and got some feedback, it is a good idea to start to think about costs. In order to get a viable business idea pitched to banks or financial backers, you will need a solid business plan. You can’t do that without a detailed plan about costs. You will need to decide if you will take a salary from the earnings and if you will be employing people. If you will be, how much will they be paid? You need to consider things like holiday cover and getting shifts covered, so staffing does need to be looked into in detail. There could be the cost of renting a store or warehouse. You need to work out everything, right down to the costs of cleaning the building, for example.
There are plenty of other small day to day costs to look at. Say you are setting up a salon or a day spa. People will have to make appointments to visit. Having appointment reminders is really important, as people can forget. If they forget, it means a wasted appointment and essentially, wasted money. So you will have to think to yourself, what are the best appointment reminders: manual vs. automated? Then there will be costs implicated with that. Manual would obviously be cheaper, but it means time to go through and physically do all of the reminders. So look into the costs, as well as the realistic expectations of what will happen on a day to day basis. Things will be busy to start with, so don’t try to take on too much if it isn’t going to happen.
The projections of your profit will be a little tricker to iron out. You need to go by what has happened so far in your business and what the potential market is. Banks and backers will want to know financial projections for several years, though. They will want to know that they will get their money back, as timely as possible, essentially. When you feel confident with your numbers, you can start looking for investment. Then, the world is your oyster, as you get your business off the ground!
This article was provided by ellie jo