The idea of starting a business is always interesting until you begin the process. Realities begin to set in once you start listing the things you need to establish your small business. As an entrepreneur, there are financial, legal, and marketing issues that you will encounter. Other questions that will arise are on how you will develop your product, protect your intellectual property, and so on.
This can be overwhelming and if you are not careful, your business may never get a chance to stand on its own. Prior to getting started with your small business, here are 10 reality checks that you need to do:
1. Have you made the right preparations?
Many people who start their businesses have had experience in the employment sector. Getting started with your own small business from this background will totally change your lifestyle. Don’t think it’s a quick way of becoming rich or freeing yourself from problems. It requires good preparation and determination towards hard work and the patience to wait for benefits in the long term.
2. Do a Financial Check
Starting your small business will require some money. If you just got money for buying stock only, you need to think twice and see other things that will require setting up your business in the right manner. Be prepared to sell your idea instead and convince investors to invest in your business. Those providing working capital loans for small businesses need to be convinced that your idea is worth taking the risk for, based on how you present it.
3. What Need Are You Solving? Will Customers afford the Solution?
You may be having a great idea with a perfect solution but that is not enough. Don’t just come up with something that customers will like. At the end of the day, they will only buy something that they need and can relate with. Still, customers may have a need for the product but if it is expensive, they will shy away from it.
4. Deciding on the Business Name
Some people make the mistake of failing to get the right name for their businesses. Keep the name simple but don’t make it limiting since your business is expected to grow. If you are building a website for it, use a .com extension rather than any other extensions that you will find online.
5. Focus on Developing a Great Product to Launch
Be detailed in the development of your product but don’t take too long to launch it. It should be distinct from other products being offered by your competitors. Waste no time in getting the product to the market and welcome any customer feedback to help you improve on it.
6. Watch out for Hidden Costs
To get started, does your business require other input that will require pumping in more cash? Hidden costs and other dependencies may be a hindrance to the success of your business. Therefore, it is important to understand all channels and costs involved prior to the establishment of your business.
7. Be the Number one Salesperson
If you can’t advocate for your product, who else will? You must become a great and convincing salesperson. Sell the products to your would-be employees, prospective investors, and customers as well. Refine your pitch and work with feedback from your prospects to improve on your product and business processes. Exude calm and confidence and remain positive all through for your business to be successful.
8. Update your Investors all the time
Be ready to update your investors on anything that happens to the business. It could be good or bad but it is important they remain in light concerning the affairs of the business. Provide a summary of the progress you are making and how the product has developed with time. These are things that will build trust and encourage support from all the stakeholders and boost businessess success.
9. Building a Strong Team
Establishing a successful business requires the input of members of a motivated team. It is your duty to put together a solid team, motivate and manage it for proper development and establishment of the businesses. Help the team overcome challenges on the way to keep focused on the goals of your business.
10. Make Clear Agreements with Co-Founders
The details of your relationship with other co-founders in the business should be well stipulated to avoid conflict when the businesses starts to grow. Decide on the percentages to be received by each of the partners in the business. Don’t allow the pressure and desire to get started quickly to make you skip this important step.
This is a perfect reality checklist for a successful business establishment. All the best in your new venture!