So, you want to start a business?

June 11, 2020 So, you want to start a business?

What do you need to know if you want to start a business?

You have a great business idea and you’re raring to go. Congratulations!

Before you embark, remember that there’s a lot more to consider than just your business name and what you plan to sell. Starting a business is a major life decision. Along with the excitement of the new venture, you should expect to face some stress and challenges on your journey.

Being well prepared will help you to anticipate obstacles and greatly improve your likelihood of overcoming them. Here are some key things to consider before you start.

Know where you’re going

The world of small business is a competitive space and it’s natural to want to get moving on your ideas as quickly as possible. But there’s no point starting a race if you don’t know the route – you’re likely to get lost!

Before you do anything, get some small business advice, and ask yourself:

  • Why am I going into business?
  • What do I want to achieve?
  • How much profit do I need to make?
  • Have I considered all of the costs of starting a business, purchasing inputs for my product or service, marketing and taxation?
  • How will I fund the start-up of my business?
  • How much cash do I need each week to cover my living costs?
  • How long do I want to be operating this business?
  • Am I planning to sell the business? If so, when and for how much?
  • How fast can I grow the business with my current funding?

Create a business, not a job

Remember: the purpose of owning your own business is to give you more time to live your life, not less. Many small business owners fall into the trap of building a business so dependent on them that there’s simply no way it could survive without their constant work.

To avoid this scenario, you need to develop products or services that are scalable. That means the sale or delivery of your product or services can be made by someone else. In order to be scalable, you need to design very clear methods and processes that can easily be learnt and followed by new employees.

Many start-up businesses grow too quickly – beyond what their systems, processes and funding can cope with. Without clear and well-documented processes, rapid growth or scaling up too quickly will cause issues in terms of:

  • quality
  • customer satisfaction
  • efficiency
  • cash flow funding.

All of this can be avoided by getting good advice before you start.

Beware of bad advice

These days, the internet is full of information on how to be successful. The cloud revolution has also enabled us to set up our financial and other business systems quickly, on the cheap, and often without the aid of professional help.

While free information and speedy tech solutions are appealing, you need to be cautious. Make sure that you are following advice that’s:

  • from a trustworthy source
  • relevant to your business circumstances
  • based on the right data.

Get the right help from the beginning

Planning for your businesses is not the place to cut corners or save costs. A qualified accountant can give you expert, tailored advice before you start, helping you to avoid common pitfalls so that your business has the best chance of succeeding.

They’ll help you answer basic but critical questions, such as:

  • Should I be starting this business?
  • What structure should I use?
  • How should the accounting and financial systems be set up?
  • What are the main goals for the business (both financial and non-financial)?
  • What indicators should I be looking for to tell me if the strategy is on course?
  • How do I know what levels these indicators need to be?

Getting the right advice on all of these aspects creates the clear road map you need.

At Pretium Solutions, we want to help you achieve success and enjoy the freedom of having a business that works without you. We’ll get you to where you want to be by helping you plan from the start. We’ll work with you to:

  • get clear on the plan for your business
  • know your numbers and what they mean
  • set your action plan
  • identify your milestones
  • monitor and review your progress.

Download our business start-up guide to take the first step.

We also offer a Client Advisory Board service – a great resource for every business. You get industry experts in your very own board of advisers, ready to help make your business a success. To learn more about this exciting service, contact us.