Setting Up A Business For Beginners
Financial independence is something that we all dream of achieving. For most, this is a pipe dream because of the lack of opportunities as well as the cycle of poverty that seem to follow them. Others want to leave poverty behind but struggle to get their business up and running because they do not have mentors or people giving them valuable lessons on how to take the first steps and get the ball rolling.
Below are some points to consider when setting up a business. These, of course, are not copy and paste and so you have to tailor-make them to suit your current situation.
The biggest problem that stops people from either starting a business or not failing is enough running capital. Some people are fortunate enough to be gifted enough money to start their business. For others, it is not that simple and so other sources of funds have to be obtained. Each business is different and so the starting capital will be different. For businesses that require little sums of money to start up, a prospective business person can save up little amounts monthly either by themselves or with their future business partners.
For those that require a bit more capital saving up might not be possible and so the help of banks is required. A lot of people approach banks with their proposals and get denied. If I was the person on the other side of the desk I would also deny some proposals because of the practicality of the ideas. For you to stand a chance of getting a loan you have to prove that the business will make money and will not go bankrupt. The bank does not under any circumstance make bad investments and lose money. If you approach them with a well-structured business proposal they might entertain you. If you have set up your business already and have projected sales for the year this might also work in your favour. Having collateral in the form of a car or house can also help you secure the loan as the bank knows that they can recoup their money if your business fails.
when looking up businesses, most of us try to find out where their offices are located. This is something that gives us a sense of security and helps us trust the particular company. I too try to find out as much as possible about a new business before doing business with them. It is, therefore, necessary to choose a location that instills a sense of safety and confidence in prospective customers. A balance between location, office size as well as rent has to be found. I have discovered that some newbies tend to rent out expensive upmarket office spaces without establishing their business.
If money is tight, I find that renting out relatively cheap office space until the business is up and running is always a good idea. This allows you to have enough capital to save up and grow the business. Another alternative is to run the business in your home. If you have enough space you can turn a room into your office. If not, you can find a space where you put a desk and all your work items.
The space chosen has to be big enough to allow you to work comfortably. For example, if you are running an online business all you might need is a stable internet, a good laptop/desktop, a desk and a coffee machine for those long nights. If you are running something a bit more technical such as a sewing business, you might require more space that has been equipped with all the tools that you require.
Another problem that people make is to employ or take on more staff than is necessary. This often happens when one feels responsible for some friends and family. This might look good to the public but this is a sure way of burning through the starting capital. It is, therefore, necessary to have only vital staff that you can not work without. It is also possible to subcontract or to have someone on an ad-hoc basis as this saves you lots of money.