5 Things To Consider Before Starting A Business

start a business

Credit: notnyt

Being your own boss is a lot of people’s dream, but it’s important to make sure a solid foundation is laid before you start trying to live that dream. When it comes to starting a business there are some simple but still quite necessary steps that you’re simply going to need to take in order to succeed.

#1: Familiarize Yourself With The Business

It seems like common sense but if you’re going to open a bakery specializing in cupcakes, it’s a good idea for you to know what goes into making and presenting those delectable desserts. A business isn’t a fun experiment or an excursion, and treating it like one will make it harder to succeed. Whether it’s a bakery or a consignment shop, an art gallery or a cell phone store you need to be familiar enough with the business to run it yourself. That means understanding the product, how to handle customers, what the costs of operation are going to be, and all of the finer points that go into keeping a business up and running.

#2: Create A Budget. And Stick to it.

Budgeting isn’t just for your home life; it’s a necessity for a successful business too. You need to know how much you pay for new product, what your operating costs are, how much your bills are going to be, what you need to pay your employees, and how much upkeeping your licenses and repairs are going to cost. Once you know how much your business is going to cost you then know how much money you have to make at a bare minimum just to cover your expenses.

#3: Understand How Much You Need To Live On

It isn’t enough just to keep your business afloat; you have to make a living too. So once you know how much money you have to make just to keep your doors open you then need to look at your own life and ask how much money you need to make in order to live comfortably. Once you figure out what you need to make in a year, complete with taxes, savings, and costs like health care, then you’ll know what your business will have to grow into in order to keep you comfortable.

#4: Networking is Key

Networking is always listed as a key to business success, but that doesn’t mean you need to wait until your business is up and running before you do it. Before you even think about starting your business you should check and see who would be interested in investing, who has expertise to offer, and who can help you get an advantage over the competition. Clients, investors, employees, partners, all of those come about because of good networking.

#5: Insurance

Accidents happen, and if you don’t plan for them then something simple can take a successful business and wipe it out. A theft, a natural disaster, or any of a dozen other problems can all plague an otherwise healthy and virile business concept. That’s why it’s important to seek out a provider like Cavendish Munro and find out what it will cost to insure your business before you even think about opening your doors.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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