10 Things To Consider Before Starting A Small Business
Provided by: Jabai Industries
Given that there are many mistakes that can be made when starting a business or already having one in operation, 10 considerations will be discussed that will help flesh out some possible mistakes business owners could make.
These are shared in order to help others be able to save time and money by not making the same mistakes, and thus be able to set a stronger foundation from which their business endeavors can take off from and maintain themselves on.
#1 – Initial Registration & Considerations For Your Business
What type of business do you have? Will you have employees? Are you going to register as a sole proprietor or as an L.L.C.? Do you have a local or online business?
Your answer to those questions will undoubtedly tailor the best approach that you should take. Moreover, each answer has a distinct approach that is probably best for it, and/or best for you, so thoroughly researching the advantages to each question and consideration (such as to register as a sole proprietor or as an L.L.C.) will save you a lot of time or money.
#2 – Conceptualizing Your Business Name
A common mistake that can be done by many new business owners is registering too many business names, websites, and so on. This is problematic not only because (1) you are spreading yourself too thin, but because (2) you could end up misallocating considerable time on multiple endeavors instead of sticking to one initially and securing that business model, (3) and you could end up spending considerable resources by registering too many business names, or websites, that could go to other portions of your business or even to self-growth as well.
Whatever business name you choose, make sure that you contemplate that at length so you don’t end up regretting it later by having made decisions that could have easily been avoided with some rumination and research.
#3 – Consider The Overarching Implications Of Your Business Name
To simplify: does your business model only entail one area such as fitness, or is it something more broad? Is your business model simply arts and crafts, or does it include singing, acting, performance art and so forth? There is a distinct difference because whatever business name you choose to use will set the tone for what kind of customers and clients you get.
#4 – Merchandising Your Business
Make sure you allocate your resources correctly.
For instance, a great mistake that is made by initial business owners is that many times merchandise is ordered in numbers much larger than it should have been ordered, or maybe that merchandise was ordered too early given that there’s no audience for that merchandise to reach.
It will always be easier for individuals to move merchandise with an audience already having been created or available, then it is to create an audience with your merchandise when your business is starting.
#5 – Pondering The Range Of The Services For Your Business
While staring a small business is incredibly commendable and laudable, it could be easy for an individual to pigeonhole themselves into just one area business.
As an example, if you only offer a unique service or luxury items, those items and services can at any moment be no longer sought after by clients and customers depending on circumstances. This doesn’t mean one shouldn’t consider following suit with a business or an idea just because it’s a luxury item or because your business caters just to one demographic, not at all. It simply means deeper consideration of the fact that your business model might be dependent on not only a little bit of luck, but personal financially circumstances of clients and customers, and more importantly, regional, national, or global economic circumstances which affect everyone.
Not expanding onto other areas could be a mistake depending on what your future plans are, where you live, and what your business model is.
#6 – Making Sure That You Have An Audience
Know your audience: is the consumer base that your business model needs already there, or do you need to work from the ground up in creating it? This is a crucial distinction.
If the prior is the case, then you don’t have that much of a problem. If the latter circumstance is the issue, then you might want to consider building an audience with social media such as Facebook, YouTube, Instagram, Twitter, and so on. This way, whenever you do advertise your services and merchandise, it already has a baseline of potential consumers for it to reach.
#7 – Referrals & Affiliations
A great way to expand your business relationships and customer base is by creating or joining a network of like-minded business owners.
For instance, while you might only have a business in the realm of health, someone might require vehicle repair services. If you happen to already know someone that is a mechanic or owns a business, then you can refer that friend or client to that individual or business, thus strengthening that relationship given that you’ve not only promoted their business, but you’re showing yourself to be loyal to that person as you would others, which often can reap rewards of varying scales.
By remaining open minded, extending your network, and seeking to create referrals for others as well as strengthening the affiliations with other business owners, you stand to benefit by:
* Referring friends or clients to other business colleagues, and vice versa.
* Strengthening the individual relationships
* Strengthening the overarching network depending on how far reaching that referral extends to.
* Creating more contacts for yourself and/or others.
* Your business profiting and growing from the growth of the referrals and affiliations.
Simply stated, don’t ever underestimate the power of referrals. It has a lot more range than it is given credit for, it is simple, and it cost nothing but time and effort.
#8 – Waste Of Capital
There are a lot of ways that capital can be misspent in business venture. This can be as simple as purchasing too many business cards and business supplies that aren’t needed yet, to something like purchasing merchandise (i.e. apparel) without having an audience available that will sustain that sort of investment.
Another great example is moving to a brick and mortar store way too soon without having the capital to withhold the business expenses in hopes of having that capital to be built later.
Capital that is misspent once is a hard lesson earned, and something that we all go through whether in life or business, but it’s something that can often be avoided with some research and extended considerations.
#9 – Changing Project Names Too Often
It is easy to fall into the idea that you have a business name that you love, and thus, go into creating a name, website, social media platforms and so on, when you get started. But many times, though the idea may be ironclad, the name might not be, and you might end up switching names to often.
If you chose name A for your business and created a website with name A for it, then if you change the name for that business, you will have to change the name of the website, so on and so forth. You can see how this one mistake can trickle down like a snowball creating an avalanche of complications later on depending on how far and wide the name was extended towards.
#10 – Spreading Yourself To Thin
The issue of spreading yourself too thin in business can take place in:
* Multiple project simultaneously
* Changing business names often
* Having too many meetings
* Spending too much time on the phone
* Spending too much time on social media
* Expanding into too many services and products
* Running and expanding a blog (or blogs)
There are many more ways in which a business owner can spread themselves thin, so it is crucial to keep awareness of where time leaks might take place, because every hour that’s misspent in business is an hour that cannot be gained back, and is an hour that could have gone to growth in some other areas.
In life, like in business, it’s easy to make mistakes. The great thing is that both life and business almost always offer a second chance. That doesn’t mean business owners should be afraid of making mistakes, not at all. This simply means that careful consideration should be had given that many times the mistakes that are being made could have been avoided because hundreds if not thousands of business owners have made that mistake before, and some have probably talked about it.
This isn’t always the case, but you would be surprised how many success and failure stories there are out here with gems of wisdom on do’s and don’ts for businesses of all types.
Don’t be afraid to try something out simply because you might fail, but don’t be gun-ho about storming towards the horizon with a new idea simply because it seems fantastic without giving it much thought either. Make sure to be mindful, proactive, and do research, if not considerable research into whatever field you are in to make sure that you not only start out the correct way, but you also limit the mistakes you make, as well as saving time and money that will be better allocated elsewhere.
Do any of you have any other mistakes you made in business that you wish to share, ideas that you wish to impart or wish you might have taken part of, or thoughts you want others to consider? It would be great to hear your input below on these topics below.
Content Provided By Jabai Industries
Article Written Zy Marquiez
Writer, Researcher, & Book Reviewer
Owner of Blocked Up