Business

5 things you need to know before you start up a new business

5 things you need to know before you start up a new business

Self employment is becoming an increasingly popular choice of employment status in the United States and 2015 statistics based show that over 10% of all US workers were self-employed. If you’ve set up a business before then you will be well aware of all of the tasks that you need to complete when you are setting up on your own.

There are a number of sources you can use to determine what you need to think about before you decide to start up a business. The most important part is working out whether you have an idea that is likely to be successful. A number of factors go into this, including calculating your forecasted profits and having the right skills and experience to deliver the product or services of the business. Another way to analyze this is to conduct a competitor analysis. 

Competitor Analysis – Look at who your main competitors are in your area and do some research about them. If you can find out details about their pricing structures and you know that you can stay competitive with them then that is the first step. If there is a number of similar businesses in your area and not enough customer demand (have you seen similar businesses close down?) then you might need to reconsider your business idea. 

Tax and accounts – There is a lot of administration you will need to get to grips with. From registering your company to preparing your accounts for tax purposes, there is a lot of hard work involved. Hiring an accountant can seem expensive but if they can actually save you money with their expertise, then it could be money well spent. 

Marketing – Having an effective marketing strategy is critical to the success of any business. You need to ensure that people can find your products and services or you won’t have any customers. You can outsource your marketing needs to companies like eventige.com or you can develop your own. There is a great deal of support and guidance available from marketing experts that can help you to develop your strategy. 

Premises – All businesses need to operate from somewhere and it will largely depend on your type of business. If you are going to be trading from a shop, you need to find suitable premises. Do a lot of research around this because you want to make sure that you will be able to set up shop in the right area at the right price. Many lease options ask you to sign up for a minimum amount of years, so think about the worst case scenario if your business doesn’t take off. You will also need to look at the different types of insurance that you need to cover your business. 

Equipment/products – Again, depending on the type of business that you are looking at, you may have lots of equipment or products to buy. Do you have enough capital for this? Work out what you can afford and spend time trying to negotiate the best deals with suppliers.