Do you think that the right time has come to step out and start your own business? If so, you may be thinking that all you are going to need is a little drive and enthusiasm to be a successful business owner. However, before getting started with your new venture, it is crucial that you consider all of the advantages and disadvantages of what may lie ahead afterwards. After all, starting a business requires a significant level of commitment and aspects such as extended working hours and having to generate additional income single-handedly need to be considered as well.
Perform Extensive Research Beforehand
Before rushing out to start your business, you must determine whether it will be an economically viable venture or not. Have you considered how you are going to be able to compete as a new market entrant against those who are already established? If there are potential barriers to entry, what plans have you made to overcome them?
It will also be crucial for you to define and know the market that you will be selling your product or service to. As a result, you will have to carry out market research regarding competition, the current business environment and your target market before even developing your plan of strategy.
Getting the Legalities Sorted
You will need to determine how your business is going to operate as well. You may require professional advice to choose the correct legal structure for your business for asset protection, tax and growth purposes. Choosing the right legal structure at the outset will enable you to fully understand your obligations, rights and duties. This is the time that you will have to determine whether you are going to operate as a sole trader, a partner in a partnership, a company or even a trust.
The Correct Location is Essential
Even if you have the best idea in the world for a business, your efforts will amount to nothing if you are situated in the wrong location. Always ensure that you do sufficient research regarding the location of your target market. Something else to consider is purchasing or obtaining the correct office furnishings and accessories. This will help make your business location as welcoming and aesthetically appealing as possible to your clients. A buy, lease or hire purchase analysis must be performed before you even think of entering into any rental or property purchase agreement.
Do you have enough personal cash or available funding from a business partner (if applicable)? The best way to ensure you stand an excellent chance of securing additional funding is to compile a list of your financial needs as well as a cash flow forecast for the next 12 to 24 months. It is also essential to put together a profit and loss projection that will cover at least the next 3 years. if you are unsure how to get started on these, you will need to speak with an experienced and qualified CPA.
It will be necessary to determine what forms of advertising will be the most effective to reach your target market and you will need to ensure that you have set aside a marketing budget for this. You will also need to experiment in order to find the most effective times to reach your target market.
Will you be operating a family-run business or are you going to need additional staff members who are more experienced as well? It is important to keep in mind that the operating hours you choose will have an effect on the penalty rates and overtime you could be required to pay. It is recommended that you check industry award rates and any other employee requirements that there may be so that you can understand your employee obligations as best as possible.
After you decide to start your own business, a qualified CPA will be extremely valuable as you navigate all the legalities required to get up and running. If you would like to find out more about starting your own business or you require the services of an experienced CPA who will be able to help you through each step of the process, get in touch with us today.