A Handy Guide for the Aspiring Entrepreneurs on Starting a Business
Starting a new business required a lot of skills and knowledge to deal with various issues like finance, marketing, legal, human resource management, information technology, intellectual property management and more. However, the interest and enthusiasm about entrepreneurship are on hype now.
People get inspired by the success stories of many startups, growing to multi-billion-dollar companies overtime including the most popular brands like Facebook, Uber, Airbnb, WhatsApp, etc. to name a few. In this article, we will discuss some key aspects and step for aspiring entrepreneurs to succeed in your business endeavors.
Understand the challenges Involved
Starting a business is a huge responsibility and commitment. Entrepreneurs those who fail to give a serious consideration by dedicating a significant amount of time, energy, and resources into it may mostly fail. Here are some of the major challenges involved in starting a business.
- Identifying a great product or service to offer.
- Having a strong vision and solid plan for the business.
- Raising enough capital and ensuring cash flow.
- Finding good employees.
- Persistence, not to get discouraged by any rejections.
- Time management.
- Maintaining an ideal work-life balance.
- Knowing when to revisit the strategy.
Protecting the personal assets
It is advisable not to start a business simply as a sole proprietorship. This may sometimes result in putting all your personal assets at stake against the business debts and liabilities. You may always prefer to start a business as:
· S corporation which gives you a favorable flow in terms of tax treatment
· C corporation, which is largely admired by the venture capitalists or a
· Limited liability company (LLC).
Setting up these is not expensive or difficult.
Come up with a great name
Selecting an apt name for your business can be given you a significant advantage in the market. A wrong name may result not only being unattractive but also some insurmountable business and legal complications. Here as some tips on naming your business.
- Avoid any hard to spell / hard to memorize names.
- Don't choose a name which will limit your growth over time.
- Do a thorough search before finalizing a proposed name.
- Try to get a ".com" extension for your domain with a business name.
- Check the proposed name for any trademark issues.
- Make sure the mention of the business name makes you and your employees happy.
- At the first point, come with at least five names you prefer and then test them with potential others, prospective employees, investors, partners, and also customers if possible.
Proper small business database management
Proper database construction and management will make your startup administration much more efficient. During business growth, it can give you some valuable insights and help get a real sense of business information. Proper databases can also help you to make your products and services really valuable.
For those startup business owners with non-IT staff, databases can be now easily wrapped up in the form of a software program. Most of the entrepreneurs may not be coding or knowing it, but there are handy database management solutions offered by providers like RemoteDBA.com, which can be effectively utilized in successful and insightful database management. The Software as a Service (SaaS) platforms now has databases built into them, which the users can manage through friendly control panels, for which you need not have to be a coder.
Make a great website
Any business, or any industry and nature, cannot survive now without a good website. Anyone including clients or investors may not trust you without looking at your site. So, you have to work hard in order to impress with a professional website, which reflects both your reputation and reliability. Here are some tips to set up a proper company website.
- Check the competitor sites and some actionable insights.
- Make a primary sketch and template for your website.
- Come up with a few sites you like the most and share it with your website designer and developer to get an understanding of your tastes.
- Ensure that the site you design is search engine optimized.
- Use high-quality content and use original photographs on your website.
- Ensure your site is responsive and optimized for the mobile devices too.
- Keep your site simple and clean without any clutter.
- Ensure your site provides enough and valid information about your product and services.
- Make the navigation user-friendly and prominent based on your target users preferences.
- Get a memorable and easily understandable “.com” domain name first.
Make the deal clearer with co-founders
If you are starting a partnership firm with similar-minded co-founders, then you should clearly define the business relationship at the very first point itself. Not doing it may potentially end up in some clashes and legal issues later. For this, think of a proper founder agreement like a prenuptial agreement. Some of the keys aspects of it include:
- The equity split among the co-founders
- Roles and responsibilities of each founder
- If a found parts, do the other founders hold the right buy back the shares, if so at what price?
- How much does each founder expect time commitment?
- What compensations are each founder entitled to?
- Who and how to make the key decisions in terms of day to day operations?
- Under which circumstances, a founder can be removed from the business?
- What assets or funds each founder contributes and what percentage of returns each is entitled to?
- What happens in case of the demise of a founder?
Set up a proper accounting system
You have to try and set up a proper accounting system for tracking and managing your finances well. Keep track of all income, capital expenditures, general expenses, profit, loss, etc. Financial management is a crucial aspect of business management, not only for tax-filing purposes but also for business planning and weaving success strategies. There are many handy business finance management packages including QuickBooks, FreshBooks, Zoho, and Xero for a small business administrator to implement.
Startup business owners also should keep in mind that the venture processes can be very tiresome and time-consuming. So, you need to be well prepared with a persistent mindset in order to successfully establish and administer your startup business successfully.