fbpx

Getting the Small Business Basics Right

There can be many reasons why people will want to start a small business. It may be that you want to create a business that works around your family commitments or perhaps creating a business is a dream of yours as you get to work for yourself and see what you have dreamt of coming to life. There can be some direct rewards (and sometimes losses), that can come from being a small business owner, which can be preferred for many, especially compared to working for someone else.

You definitely need to have the drive to succeed, as things aren’t always going to go to plan. Not only that, you do need to be disciplined in your work, as you are the one in charge and there is no one else to answer to but yourself. It can take a bold leap of faith to get a business up and running as well, so starting a business of your own isn’t for the faint-hearted. In many instances, it can be a good idea to get a business up and going alongside formal paid employment, just until the point that you are earning enough to go it alone. There are also other things you could try like starting a summer business to give you a taste of the business world, which can be a good idea if you are a student perhaps. You just need to know that your ideas can work and get your head around the ins and outs of the business world.

Image Source

Choosing Your Business

One of the most difficult decisions that come from starting a small business is what area or industry are you going to start it in. If you have a clear vision or idea and have had one for a while, then that can really help. But otherwise, there can be many options and you may not feel like you are experienced, talented, or skilled enough.

So to start off with, it is always a good idea to play to your strengths. If you like the idea of owning a restaurant but have zero experience with the food industry or being a restaurateur, then it isn’t going to be the best move necessarily, as there is a lot to learn in that sector, as an example. So think about what you have experience in professionally, as well as personally. You could have a skill that has only been a hobby so far that could branch out to be a business in the future. It helps if you are passionate about something too, as well as having strengths in that area.

Potential Demand

As with anything that you want to do, you need to check that there is demand for the business or service that you plan on offering. You could check what competitors near you are doing, as well as just doing some plain old market research. If your business is something quite specific, such as a service for a local community or a school, then it can be easily checked to see if there is demand as your customers are right there. Checking what people think is a reasonable price is also a good idea too so that you’re able to assess how many customers or sales you would need to make it profitable.

Personal Finances

On a similar note, you need to decide what you will be doing with your personal finances. Are you planning to draw a salary from your income, or will you be reinvesting everything back into the business? If the latter is the case, then what will you be doing for an income, or can others in the household support you? This is an important part of business planning, as it does make a real difference to what you decide to do and what your business plan needs to be in order to pay you or earn enough that you can draw dividends, for instance.

Lifestyle

One of the real benefits of working for yourself is that you can set the hours that you want to work. If you want to get away from the nine to five kind of routine, then it is something that you can do quite easily. But you should plan what your lifestyle is going to be with a business. Will you plan your working days and hours, or only work when you have orders or requests, for instance? Establishing a pattern of working is good to stick to, at least in the early days, and then you can go from there.