Grant Cardone said, “As long as you are alive, you will either live to accomplish your own goals and dreams or be used as a resource to accomplish someone else’s.”
While most people will work for someone else at some point in their lives, many choose to pursue their own dreams and start a business of their own. However, only a little over half of those businesses will make it past the five-year mark.
If you’re considering going out on your own, take a minute to read our guide on the basics of business to make sure you’re on the winning end of that statistic!
1. Face Failure First
Fear can be a powerful motivator — but it can also be crippling.
Before you start, take time to go through all your worst-case scenarios and face your fears. Write down everything you’re afraid of, all the outcomes in which your endeavor fails, and then allow yourself to sort through what would happen if they were to happen.
By getting your fears in front of you and facing them head-on, they won’t be able to sneak up on you later after you’re already in the game and prevent you from moving forward with your dreams.
2. Absorb as Much Information as You Can
We live in a time where information on every subject is readily available — and you should use that to your advantage. Research your industry, best business practices, marketing ideas, tax and accounting regulations, and any other pertinent information that will help you build a better business.
3. Start Your Business While You’re Still Employed
If you can, launch your new start-up while you still have financial security elsewhere.
If you’re able to work full-time at your current job while starting your business on the side you’ll take some stress off yourself financially. If your current job is too demanding, consider getting a more laid back part-time job to bridge the gap.
Keeping a secondary income stream means your new business’s profits can go right back into the business instead of supporting you, meaning you can get more going right from the start.
4. Write a Business Plan
If you’re going to run a successful business you need to lay a solid foundation to build on. A business plan works as a planning tool for you to brainstorm, do market research and create your business dream on paper before it becomes a reality.
Write out a business plan outlining the details of your business, three years of projected profit and loss plans, startup expenses, and growth strategies. Not only will it help you stay on point, but it’s also a handy tool to have for potential investors.
5. Have Clients Before You Open
Start spreading the word and getting the attention of potential clients before you launch. If you can get a few clients on board before you’ve started, you will already have a small income and the beginning of your word of mouth referrals.
It also looks good for potential investors if you’ve managed to gain attention and clients before your doors even open.
6. Take Care of the Necessities First
Along with your business plan, take care of other business necessities right at the start. Register your business with the city and state and get the necessary licenses. Think ahead and look into future needs like business health insurance.
7. Take Yourself Seriously From the Start
If you want people to take your business seriously, you need to as well. Be professional right from the start, before your business even launches.
Appearances are everything in business. You’re not just selling a product or service — you’re selling your business. Make sure that the image presented is the one you want people to remember.
While that image will and should grow more refined as you narrow in on your vision, be as professional as possible right from the start.
8. Have Your Money Situation Sorted Out First
Part of taking yourself seriously includes your financial situation. You don’t want your plans cut short when you suddenly realize you’ve run out of money.
If you want future potential investors or traditional lenders to believe you can make your dream a reality, you need to show them that you are prepared. A business plan helps with this, but solid financial commitment and planning are even more important.
When you can show you take money seriously and handle it responsibly, you’ll be more likely to garner the financial support of others.
9. Ask For Professional Help
Don’t be afraid to be a newbie. Great businesses are rarely built in solidarity.
Ask for advice from other business owners and those already doing well within your industry, and then soak it all up like a sponge. Information is power, and along with your own research, learning what you can from those who have gone before you can increase your chances of success.
10. Be Completely Legal
There are a lot of legalities to consider when you own a business.
When you’re researching, take note of the necessary legal hoops your business will need to clear before operating.
- Register with the federal government for an EIN, or employer identification number, for taxes.
- Find an accountant to help you set up your business structure and the accounting method you’ll use to keep records.
- Look into the different permits and licenses your industry requires to operate.
- Obtain business liability insurance, and add any other necessary coverages to keep your new business protected.
- Ascertain whether or not you will need a business attorney to help you create legal structures and documents.
The Basics of Business — Like a Boss!
Starting a new business is both an exciting and scary time for most entrepreneurs. But with a little research, planning, and careful execution, you can master the basics of business like a boss!
Looking for more game-changing advice? Check out the rest of the articles on the site!