If you’re looking to start a business in 2022, that’s great! We’ve been there, and we know how exciting the initial process can be. However, there’s a lot to consider before taking the plunge and announcing your new venture to the world. After starting our own business from scratch, and helping others do the same with theirs, we’ve become familiar with the key things to know before getting started, and we want to share them with you.
CEMENT YOUR ‘WHY’
Before you do anything, you need to have a solid idea of why it is that you’re doing it. Your ‘why’ should be personal – perhaps you have a vested interest in the industry you want to set up in, or maybe you’re filling a gap in a market that you, yourself, have been disappointed by – and it should be the foundations of your business. Your ‘why’ is what will drive you when motivation runs low, as it inevitably will from time to time, and it’s what will keep you going when times get tough.
As well as ensuring that you don’t give up on your business, your ‘why’ demonstrates the authenticity of your business, and will demonstrate to your customers that you really care about what you’re working on. Having a clear and tangible driving force like this ensures that your business doesn’t come off as being solely driven by money, and in turn, customers are more likely to trust you.
RESEARCH YOUR TARGET MARKET
Whatever your business structure, without your customers you simply won’t make a profit, so it’s important to make them a priority right from the start. You need to know in great detail who you’re aiming your business at – your target market – because without this information, you’re going to be stabbing in the dark when it comes to your product development, service offerings, and marketing.
Take the time to do thorough research into who you’re selling to before you launch, as this way you can tailor your business directly to those who will be buying from you. The more research you do, the more relevant your business will be, and the more likely customers are to come through your doors (literally or figuratively).
DETERMINE YOUR BOUNDARIES
It’s inevitable that starting a business will consume you, but it doesn’t need to result in burnout. By determining clear boundaries, both personal and professional, you can ensure that while you might always be ‘on’ in the background, your business doesn’t need to take over your life.
Decide upon working practices for your business and stick to them. For example, set clear working hours, get a second phone dedicated to work communication alone, filter customer or client enquiries through a single email address to avoid your own inbox becoming inundated with correspondence that is not directly relevant to you.
Another thing worth noting with regards to boundaries, is knowing where your own strengths end. If you are aware that you lack capabilities that are vital for the growth of your business and you don’t have the time to develop your skills, hiring someone to lend a hand in your weaker areas will pay dividends. Recognising your own personal boundaries in this regard is essential to the success of your business.
BE REALISTIC WITH BUDGETS
There’s no two ways about it – you’re going to need money to get started. It’s going to take you some time to see any financial return from your business, which means that at first your outgoings are going to far outweigh your incomings.
Due to this, we suggest putting aside as much money as you can before starting your business. Even if you think you’ve got more than you need, it’s worth doing; the worst-case scenario in this instance is that you end up with some forced savings, which is better than ending up in the red without a back-up plan. When budgeting your start-up costs, add an extra few months’ worth of money onto your initial thinking, and this way, you should be covered for all eventualities.
HAVE A PLAN
Lastly, it’s vital that you have a clear-cut plan of what you want to achieve, when you want to achieve it, and how you’re going to meet your goals. It makes things much harder if you don’t have these points nailed down before you get started.
Having a plan will ensure that you can hit the ground running and waste little time in working towards your business goals. As well, putting the time in beforehand to evaluate what you want and what needs to be done in order to achieve these goals will allow you to spot any potential roadblocks and issues ahead of time, and come up with a way to overcome them.
Unfortunately, around 20% of businesses fail in their first year, but if you put the work in before you begin, that number doesn’t need to include you. Starting a business is both exciting and daunting in equal measure, but the returns from a successful enterprise are huge. Keep these key points in mind and you’ll be on your way to building a solid business foundation – and good luck with your new endeavour!
If you’re looking for help with starting your own business, we’d love to hear from you! Follow this link to start a conversation today.
