A look at the best bits of knowledge to take on board when investing in a start-up
Top Business Start-up Tips you need to knowMost people rush into starting their own businesses without thinking of the top business start-up tips. Every great idea requires adequate planning before execution. Most start-ups fail within their first year because of poor planning and timing. Below are the key considerations one should make when starting her/her own business.
First, the individual must understand the nature of business he/she wants to start. One can start with some online research to comprehend how the industry operates. An individual entering into a niche that he/she specialises in may use his/her knowledge to identify investment opportunities.
Every start-up requires a business plan. This is a blueprint to guide the person on the prospective of the idea at hand. One is able to evaluate the idea and decide if it is worth pursuing. This document should just provide direction, but the entrepreneur should be flexible to allow room for innovativeness.
One needs to evaluate himself/herself as an entrepreneur. Martin Zwilling of entrepreneur.com suggests that everyone needs to understand his/her nature before starting a business. Some entrepreneurs are actual investors who want to build a business from scratch and face all the challenges. Others have a marketing ability that can influence the choice of any buyer. If one can understand where he/she falls, he/she will be able to identify his/her weaknesses and reinforce those areas.
One needs to calculate start-up costs. Every business requires a certain amount of capital. Having an estimate helps an individual figure out how to raise the needed cash. Most lenders do not like fresh business ideas and they hardly fund businesses without proven records of accomplishment. The best option for any entrepreneur is to stay away from traditional financiers and try to raise the capital through independent means.
A businessperson should work out all the overheads. Some people may decide to start their business at home. Hence, they may only calculate the costs that are directly related to the business and forget other relatively small expenses. Cost of electricity bills in the house will probably shoot. One should also consider computer software; bookkeeping; professional services such as solicitors or accountancy; marketing costs; company registration; stationary and insurance.
A good entrepreneur should be able to get clients while the business is still in its formulation stages. It is a big mistake for someone who is starting a business to wait until everything is set up to star selling. About.com guide, Susan Ward, advices that people should even give out small samples to identify with customers. This will help the individual in networking and making contacts.
Another important consideration one should make is the process of registering the company. Some start-ups may not require registration at the beginning. However, this may create complications in the future. The major types of businesses are sole trader, partnership, limited company, and limited liability partnership. Each has its benefits and disadvantages. One, therefore, needs to choose a legal structure that fits his/her needs best.
Someone who is just starting a business should not quite his/her day job just yet. This is because they need a backup if things do not go as planned. Moreover, they need the money to survive as the business picks up. It may take months before the business makes profits.
Greg Beck has a keen interest in mixing technolgy best practice with business which is always the case with system integration testing.