You've done it. That light bulb moment. The perfect idea for the business that is going to make you a millionaire, heck no, a billionaire. Now, despite the genius of your startup there still must be a moment of pause. Before you invest copious amounts of money and time into your new metaphorical love child take the time to consider answering these eight (relatively) simple questions before starting your business.
1. Are you ready?
This isn't going to be a simple enterprise. Starting a business will affect your lifestyle professionally and personally, and can involve a substantial financial commitment. Do you have the skill sets that will enable a thriving business, inclyding abilities, initative and capacity to work?
2. How strong is your business idea?
It might be a great thought but perhaps not suitable market conditions. You have to research the market, the demand your business already has and will have in the future. This will take studying the industry, reviewing your competitors and analysing potential customers. Work out the strengths, weaknesses, opportunities and threats of your business model. Carry all this out in an unbiased and open manner.
3. Have you made a business plan?
This will seem like a lot of work, especially if you are more of a doer than a planner. However, a well-thought out business plan can save time and money, and is useful to enable securing funding for your business.
It also gives you a sense of purpose and direction, especially if times fall dear.
4. What is your business structure?
Once you have an understanding of your business and how it sits in the market, you have to decide what shape your business will take. That often depends on the type of business you want to undertake, the market and your personality. It might be viable with you as a sole trader, or you might find more success as a large, multi employee business.
5. Do you understand what your business structure means legally?
Sole traders and businesses with multiple employees have different legal requirements. Obviously your workers need to be paid, but there are other standards and such that they are entitled you. What licences and registrations do you require to carry out the work and, most importantly have you figured out the taxation implications?
6. Have you got a support team?
This isn't your mum and your dad or your wife, these are more business figures that are integral to you success. Trusted and reliable advisers are critical for helping you with start-up issues and to continue assisting you as your business grows and develops. Get a good accountant, lawyer, etc.
7. Have you figured out your finances?
Can you afford the business? Will it run smoothly with your original capital? Can you pay your workers? Can you find future plans for development? This point is VERY IMPORTANT.
8. Have you got marketing strategies ready for your business?
You could have the best idea in the world but if you can't brand or promote your business, make it look appealing and then get it out to the masses, than you may as well not exist! Often you can contract someone to help brand and promote...
Well, that's it. Now you are on your way. Go out and make your millions (and save a couple bucks there for me!)
This information was relayed in Business Local, a segment with Sean and Tammy on the Sean for Breakfast Triple M. To hear the chat go to the following Catch Up link: