Negosentro.com | 8 Things You Should Do Before Starting a Small Business | Starting a small business is no cakewalk. Sure it might be a small venture, but that doesn’t mean it doesn’t come with its challenges. However, running a business doesn’t have to be difficult. If you have some key knowledge about certain aspects of running a business, things can be a lot easier for you.
1. Increase Your Credit Score
One of the first things you should do before starting a business is to make sure your credit score is up to par. This is especially important if you don’t have the funds to start your business. If you want to get low-interest business loans or credit cards, then you should definitely aim to improve credit. If not, you won’t stand much of a chance of getting a loan or credit card that can help you jumpstart your business.
2. Develop a Powerful Message
You also need a powerful message that grabs attention if you want to run a successful business. People need to know that your company can be their saving grace, especially if they have a problem that’s negatively impacting their everyday life. So you have to determine what customer problem you want to solve that people are willing to pay for. This concept is also known as the value proposition.
3. Know Your Target Audience
Before starting any business, whether large or small, you must know who you’ll be selling to. If not, how can you provide the messaging, products, services and experiences that appeal to them? Getting to know your customers is perhaps the most important aspect of being a business owner as the customer is the heart and soul of a company’s operation.
4. Leave Room for Growth
Instead of borrowing money the first go-round, you might consider self-funding your business idea. Then, you can go for funding once you create a growth story. In other words, you can put up your own money at first. Then, once you start getting steady customers and revenue, you can look for funding from loans and other opportunities to further grow your brand. The key takeaway is to avoid trying to build a huge empire first starting out. Start small and build from there.
5. Get a Mentor
Getting a mentor is one of the most underrated aspects of building a business. Having a person with experience to guide you along the way can prove valuable in the end. LinkedIn or SCORE.org are great places to look for a mentor.
6. Write a Business Plan
Before you start a business, make sure you have a plan in place. Know what type of business you want to have. Write down the results you want to achieve and the goals you want to meet. This is one of the best ways to stay on track as it’ll guide you through the process of starting and running your business. A solid business plan can help you put your ideas in concrete terms and identify places to change the business model when necessary.
7. Keep Track of Performance
It’s crucial to have a good grasp on the numbers that indicate how your business is doing in terms of profits, lead generation and sales. Knowing these numbers can help you make the right decisions. For example, if you know what your cash flow is looking like, then you can make an informed decision on whether or not to make an investment.
8. Don’t Listen to Statistics
If you’ve been wanting to become a business owner for a while, then you’ve likely come across the statistic that a whopping 96 percent of businesses fail within 10 years. However, don’t let that number scare you away. If it is true, it’s likely because most business owners don’t commit or follow through to the end.
Becoming a business owner won’t happen overnight, but being equipped with knowledge can help your dream feel a lot closer.