Before starting a business there will be certain considerations to take into account, below you will find ten tof these considerations.
1 The type of business you will be starting!
What type of business would you be starting up? Is it a start from scratch or is it a franchise? Or will you be taking over and already established business? The type of business you will be starting will lead to a lot of the other things that you need to consider.
2 Are you qualified to run this type of business?
Is it a type of business you need to have training and experiences first like a plumber or a hairdresser? Or if it’s a franchise will you need to do any further training through the franchise provider? What other training could you do that would help you run your business successfully? Have you managed a small business before? Or have you got a certificate in small business? Is there any other training that will be beneficial to your business, or business in general?
3 Do you have the finances or can you get the finance that is needed to start your business?
It is very important that before you start your business that you have enough money to be able to run your business for the first three months (at a minimum)as well as to cover the start up costs and any other costs that a related to this stage of your business, it is also a good idea to give your self an extra ten percent of what you think you may need to cover the unexpected. It is amazing at the number of businesses that start up without the amount of cashflow that is actually required. This amount varies from person to person, business to business.
4 Do you have the support that you need from family and friends?
Running a business is hard work, but the journey to success can be made easier with the support of loved ones, friends and family, even if it is just to give you encouragement when times are tough. It would be fantastic that if your friends who are already in business could offer you some advice and guidance in the some ways as a mentor. Or even just there to bounce ideas off.
5 The relationship that you have with your bank manager
This is very important especially if you are going to need help with number three financing and cashflow, but also because they are a good source of business information especially related to your everyday banking requirements.
6 Have a good accountant
An accountant that is good for someone else may not be so good for you, after all you have to take into consideration personalities, experience with your type of business and so on. You want your accountant to understand the industry you are in, or going to enter. You also want to be able to get sound business advice from your accountant. It is also very important that they know there job, and know what they are doing. They should be able to guide you into making the right decision as to the form you business will operate as, such as a sole trader, a company and so on.
7 Have a good lawyer
Same as with your accountant and your bank manager, you need to have a good relationship with your lawyer, after all your lawyer is the one that takes care of the legal side of your business. Some lawyers even do start up packages for small businesses. Your lawyer will also help to set up the business in the correct formate.
8 The form that your business will take!
Will your business be a sole trader, limited or public company, partnership, not for profit or something else? Getting advice from your accountant and lawyer is very important for this decision, after all they are trained and have experience and they should be able to tell you which is the most appropriate for your business.
Where will your business be located? Why did you choose that particular location, is it central to they type of clients you will be wanting to attract? Do you have a back up location if the first one doesn’t work out? Will you work from a commercial premises or out of your home?
10 Business Plan!
Do you have a business plan? This is an invaluable resource to any business. It gives you an outline for your business, as well as giving your business direction. It also helps to focus you business so that you don’t try to do too much at one time.
I hope these things have given you food for thought, and you will take them into consideration when you are starting up a new business franchise or taking over an existing business.