Start-Up Business 101: Important Do’s and Don’ts to Consider

Lots of different issues should be considered when you start a small business. It’s very important to plan everything properly to avoid common pitfalls that every small business owner usually encounters. As you decide whether you should start running a business or not, we have gathered a list of do’s and don’ts aspiring business enthusiasts should know well when starting a small business.

Start-Up Business

Dos

  • Consider reward versus risk. Business ownership is basically a balance between the risk of failure and reward of success. Each business owner must consider how much the tolerable risk is in order to define success.
  • Take time to write a great business plan. Creating an effective business plan is very important, which is why it should be skipped or neglected, and even rushed through it. Certainly the time you will spend in planning before you start your business will eventually pay off if you are just following it correctly.
  • Understand that operating and starting a small business can be very stressful and extremely time consuming. It is important to consider that when you start to build your business, you should invest your time and sincerity on it in order for it to be stable in the long run.
  • Keep in mind that a startup small business can be too demanding especially on the financial resources that you personally have. If you’re having any issue making ends meet personally, building a new business will more likely make your situation even worse. Bear in mind that as a new business owner, you are the last individual to get paid and usually doesn’t get paid.
  • Pay your taxes. Federal and state tax agencies assess really big penalties for payments that are made late and can seize assets, file liens, or even close your business if certain taxes, regardless of the amount, are not settled. As a new business owner, you should always be knowledgeable regarding with your responsibilities in your business taxes.
  • Understand fully the regulations of the government that might affect your business (DHHS, FDA, EPA, OSHA, etc.) and the significant costs usually come with complying with the regulations and rules imposed by the government.
  • Have a clearly defined market. Understanding your target customers completely will help you determine the demand for the service or product offer as well as enable you to create a more effective marketing strategy for a successful business.
  • Be prepared to utilize your own money in starting your business. Many businesses are built using the money personal savings of business owners, or sometimes with the help of their friends or family members. You should always remember that lenders are not often willing to lend you big amount of money that you need to build your new business.
  • Determine whether your idea for your business is feasible or not before you start your business. Creating a business plan that includes financial projection is extremely important in determining whether your business idea is feasible or not.
  • Consider working with professionals like bookkeeping service, accountant, and or lawyer when you start your business as part of the process of starting up your business, and the cost for each service might be included in your financial projection as well. Most business enthusiasts who tend to avoid the professional services’ expense make big mistakes that can cost them both money and time in the long run.
  • Determine the kinds of records you’ll have in order to keep for the purpose of filing taxes and for management control right before you start building your new business.
  • Have the bookkeeping system of your business in place before you launch your new business. You can also work with your personal accountant as he or she can help you establish that bookkeeping system.

Don’ts

  • Don’t expect financing process to go quickly. In fact, you should allow more time to obtain financing.
  • Never underestimate the expenses of operating and even starting a new business. It’s recommended that you obtain actual price quotes before you start your business – don’t just assume.
  • Do not forget to allocate enough working capital as you start your new business. Make sure to have established funding system for all your operating overhead expenses.
  • Never underestimate how long it will take for your business to be up and running. This is true if specialized equipment should be order or if construction period is involved.
  • Don’t underestimate your competitors. Most startup businesses define their competition too narrowly and they do not completely understand the number of business, which are competing for their target market.

 

 

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