Posts Tagged: starting
Starting up a company in today’s economy might seem like a bold move for some, but others might find it to be just a tad foolish. Various studies and experts in this field claim that nearly 90% of all start-ups tend to fail. Out of this, it’s noted that 50% of these businesses meet their end during the first year. While these numbers can be quite alarming, this isn’t a reason to feel discouraged. If anything, this should represent additional motivation to prepare yourself properly and learn appropriate ways on how to create a company that’ll be successful. In order to achieve this, we’ve prepared a simple checklist which every start-up beginner should follow.
The first step in starting any type of company is to decide on a complete business structure. The choices can vary depending on the line of your work, but choosing the right type of structure is of essence. The structure of your business will determine the paperwork, taxes, income, personal liability and all other regulations regarding your company. According to Entrepreneur, the most common forms of businesses are sole proprietorship, partnership, corporation, S corporation and Limited Liability Corporation (LLC).
Another crucial step in establishing a company is thoroughly researching the market. This step should be one of your priorities, as it decides your target audience, your selling strategy, but also your competition. It’s important to inform yourself about whether the demand for your product or service exists and is it a good idea to invest in the business. Identifying your target audience can greatly help you grasp in which direction should your company go and in what ways you can ensure its success. Knowing your competition is also one of the key aspects of market research, as you’ll want to know who you’re up against. It’s important to observe the wider picture and conclude whether your start-up has a good foundation to sit on.
Who you work against is not as important as who you’re working with. Choosing a good team of people is often more important than having the best product on the market. This is why it’s crucial to carefully choose the people you work with. This doesn’t apply solely to having a good technician, a quality sales representative or a notable PR, it’s also about choosing a great lawyer and an exceptional accountant. This is especially important in the start, as the lawyer can help you manage all permits, regulations and licenses needed for your business and an accountant will be in charge of all the finances regarding your new company. He will give you all the necessary advice about the costs, profits and investments of your company and provide information about business credit cards, debit cards as well as the business tax ID.
Having a good product and a strong strategy isn’t worth a lot if you don’t know the proper ways to present yourself. Your company’s image is a necessary part of your business and it shows your vision, mission and beliefs as a whole. The best way to achieve a good image is to develop a brand, come up with a great name and a nice logo and most importantly – have a story to tell. Your people should be the brand ambassadors and learn how to promote your image. The same goes for your business space and your office. In these terms, hiring a professional decorator might not seem like a bad idea, but there’s nothing that a few shelving solutions, good lighting and quality pieces of furniture can’t handle.
Every new beginning represents a potential risk, but you’ll never know what awaits you if you don’t take the chance. Of course, being prepared and informing yourself thoroughly about everything regarding your next venture will significantly increase your chances for success.