We often hear the stories of entrepreneurs and startups that succeed and earn millions. These stories combined with the wish to be our own boss, make a lot of people long for starting up their own business. Before you get started though, there are a lot of things you need to consider. In this post, we will help your startup become a reality by giving you an overview of what these things could be.
Before you startup can become a reality, it is you, who will be responsible for everything. Things ranging from economy, sales to brewing coffee for a meeting will be your responsibility. Therefore it is worth a thought if you have the time and skills to cope with all the tasks yourself. It is also a good idea to make sure that you have support from the people behind you (family, friends, etc.).
The people behind you.
You must be sure that the person behind you (spouse, children, friends, etc.) supports your decision about starting up on your own. Several startups and entrepreneurs are working long hours and have few days off. A workweek on 60-80 hours is not uncommon. The time you have to spare on family, hobbies, friends etc. will therefore be limited. Therefore it is important that you all have a mutual understanding that this is what you will be spending a lot of you time in the future.
Also, it is more than likely that you have to reduce the time you spend on your hobbies. Perhaps you going into business will also affect the family finances for a while, as you probably will have to give up the fixed monthly salary you are use to.
Motivation is very essential when you want to startup on you own. The idea you have needs to motivate you. If you don’t find your idea exciting and motivating it will be really hard to find the strength to work the many hours that are required to get you business up and running. Ask you self what it is that motivate you about your idea, is it just the thought of being your own boss and to earn a lot of money? If so you should rethink if a startup is the right way for you, because it is a lot of hard work and far from all startups become millionaires.
Startup help in you network
Having a good network is worth gold. You network may be in your circle of friends, through leisure activities in a local business networks, among former colleagues etc.
A lot of business contacts occur via networking for example because there is someone who knows someone who has done a good job for someone else. Though, it can be a good investment to use your network and spend some time maintaining and expanding it.
Many startups or entrepreneurs do not require large financial resources to get started. A consultant or software startup does usually not require large financial resources to get started. They can often get going with a phone, a computer, Internet access and a some kind of transport. This is something that most people have already to today.
For people that want to startup in retail or development-intensive industries as for example IT and manufacturing a larger initial capital is required for example to purchase facilities, machinery, etc. It is therefore essential that you make sure to make a realistic budget, so that you know how much money you need to get started.
You can try to get guidance from your bank, your investors, local business or network to find out what is required and if you can get some financial assistance to help you startup.
If you start your new business alone, you have to remember that you are your own director, sales, finance and marketing manager, personnel officer and handyman. It is important to determine what jobs you can handle yourself or if you need to get some help. Lack of financial management tools are a frequent reason why things go wrong for newly established startups.
You also need to consider whether you have the time and desire to handle administrative tasks yourself or whether you can afford to pay someone else to take care of them.
Here are to mention but a few of the administrative tasks that you need to handle as a startup:
- Tax settlement.
- Agreements with the IRS
- Sending out invoices and follow up on unpaid bills.
- Follow-up on budget.
- Telephone answering.
Uncertainty – don’t let it be an excuse.
It is only natural that you sense some kind of uncertainty and restraint when facing all the consideration associated with starting up on your business idea. Often this uncertainty can become a barrier for realizing your idea. Constructive feedback on your idea from future customers, network, family etc. will often help you on the way an also help your idea become more concrete and manageable. Another useful tool is to make an action plan and break it down to very small steps. This will help you get a better overview and also prevent you from getting overwhelmed by the many tasks at hand.
If you have already started up you own business then please write a comment on what considerations you had in the beginning, do you have some valuable experience that you would like to share with people who are considering making there own business?