What You Should Know Before Starting Your Own Business

Starting your own business can be a daunting task. In this blog post, we will provide you with some basic information that will help you get started. This post is your bite-sized how-to guide for starting your own business, covering everything you need to know when you are just at the beginning of your business journey. 

Here are our top tips for what you should know before starting your own business:

  1. Your ‘Why’
  2. Business Structure 
  3. Finances
  4. Marketing
  5. Operations Plan 
  6. Growth Strategy

1. Your ‘Why’

Understanding your ‘Why?’ is so important. Determining your focus, passions, and mission can help your business actions stay in alignment with your business vision.

Brainstorming your company’s values and purpose can lead to a powerful mission statement or quote to operate by. Keep this statement or these statements somewhere visible to help you make decisions that reflect your business goals.

2. Business Structure

When starting a business, one of the first things you need to decide is how your company will be structured. There are two main types of companies – limited companies and unlimited companies.

A limited company is a separate legal entity from its shareholders. This means that the company has its own independent legal rights, and shareholders are only liable for the amount of money they have invested in the company. This type of company is often used for businesses that are looking to raise investment capital from venture capitalists or other investors.

An unlimited company does not have separate legal status from its shareholders. This means that shareholders are personally liable for the debts of the company. Unlimited companies are typically smaller businesses and are not looking to raise venture capital.

There are several other types of company structures, but these are the two most common. Limited companies and unlimited companies each have their own benefits and drawbacks, so it’s important to choose the right one for your business.

Ultimately, if your main concern is business growth and you are willing to take the risks, then an unlimited company structure could be worthwhile looking into. If you are concerned about personal assets protection, then a limited company could be better suited. 

You can learn more about company structure at LegalVision. 

3. Finances

Your company’s finances are an important part of the business, after all, money is what makes the world go around! Most companies focus on what they do best and outsource the extra tasks they need assistance with. 

Have you considered the benefits of hiring a local accountant to take care of your financial matters? Especially if your new business employs many people, it can be hard to stay on top of payroll for five employees let alone twenty! 

Accountants are great for tax time as well, as the end of the financial year period is generally very busy. Get your ducks in a row and have things sorted before they get too far out of control for yourself to manage.

4. Marketing

Does your business even need marketing in the first place? If so, consider your audience. Understanding your target market is the best place to start so you can build your ideas from there. 

For example, if your business is centred around younger demographics, investing in digital marketing through social media channels would be the way to go. Whereas if your business is aimed towards older demographics, traditional marketing through radio, TV, and newspapers would be better suited.

Once you know your target market, it’s time to start developing your marketing strategy. This will include things like determining your budget, creating a marketing plan, and deciding on the channels you’ll use to reach your target audience.

There are many different ways to market a business – some of which are more expensive than others. It’s important to choose the marketing channels that will be most effective for your business and your budget.

Some of the most common marketing channels include TV, radio, online advertising, search engine optimization (SEO), and social media marketing.

While these marketing options are available, it is up to you to decide which ones to implement in your marketing strategy. Of course, the best books emphasise that you don’t have to use all of these channels – it’s important to find the ones that work best for you and your business.

5. Operations Plan

How will your business operate day-to-day? Will you have different teams set up, managers allocated to different areas of workflow, or a horizontal leadership approach?

Depending on the nature of your company, these answers will be very different for a lot of new business owners. Having some structure and operations plans in place can help things flow smoothly, especially when you are finding your feet.

Your business operations will also need to be well organized so you can track progress, set goals, and make changes as needed. Having a clear understanding of your business’ operations is essential for any new business owner.

6. Growth Strategy

Business owners are ultimately focused on the growth of their company – where do they see their business in one year, five years, ten years’ time? Getting started from the ground up can be a challenge, especially for first-time business owners.

Having a plan for business growth can assist greatly in your overall business performance, as you can strategise ways to achieve your own personal business goals. 

Conclusion

Now that you know a little bit more about starting your own business, it’s time to get out there and start planning! Use the tips we’ve provided in this blog post to get started, and don’t forget to keep learning as you go. The more prepared you are, the better your chances of success will be.