It is amazing how many times various people have perceived a need to go "it alone" and start their own business enterprise. Be it in the healthcare industry, being the field with the highest survival rate, or in the construction industry that typically has the lowest rate of survival, one thing is certain. In today's volatile economy, more people are willing to take the proverbial risk and begin a startup operation.
Some Background Facts
A full 52 percent of recently surveyed entrepreneurs said they were always interested in starting their own startup even before they entered college; 80 percent responded that they couldn't find traditional jobs when they began their startup; and 47.9 percent said they had worked for other companies for less than a full year when they began their enterprises.
It would seem that the entrepreneurial bug strikes often in the minds of many men and women. Our article below covers five priority steps that entrepreneurs should consider before establishing themselves or their enterprise.
Apart from having a required business plan, business owners must have the ability to communicate to others the nature of their product or service; how it can help others; and what benefits others will obtain by investing in the business. In fact, this alone may be considered one's top priority when starting a business.
Researching your market, finding one's niche and knowing your customers,as well as the competition, is imperative before actually launching a product or service.
This entails the why, how and where they buy similar products and how best your product can compete with what is already out there.
Just as no one goes to war without adequate resources, and money to back their military campaign, no true business person launches a startup without knowing what financing they can count on.
Likewise, few investors take a risk without knowing what the entrepreneur already has secured in financing. Be they angel investors, business incubator programs or personal investors, all make a point in wanting to know what resources are available before they take the plunge themselves.
When presenting one's business plan, identifying the key projected business goals and one's schedules to reach them, help both the business owner and investors know what equity or debt investments are necessary to reach the next major stage. Doing so, they'll have more confidence in knowing when they can expect a return on investments (ROI) and be more inclined to keep writing checks to cover expenses and further investments.
Knowing how to delegate authority, what jobs need special supervision and a support team to bring about the desired results, all form part of a successful startup launch. No one person can carry all facets of a business alone.
Having someone designated as a safety supervisor, for instance, goes a long way in preventing accidents or in knowing what to do in an on-site emergency. Likewise, having a team to collaborate with, exchange ideas and brainstorm the next phase are crucially important as well. In essence, allow your team the freedom to do what you hired them to do and learn to invest in others.
Who Is On Board With You
One of the most overlooked aspects that entrepreneurs lose sight of when starting their enterprise is who is on their side to help them through areas they can't navigate on their own. A well-versed and highly recommended attorney is a must. So is having an accountant that is familiar with the local, state and federal tax platforms.
How is your legal entity set up: an LLC, partnership or sub-chapter corporation? Who will manage the business if you can't, and what are the steps of "succession" should the unimaginable happen? What about your family and their interests?
All of the above are vitally important when planning or before launching a new enterprise. All said priorities help ensure the success and progression of your enterprise to a higher level and an eventual, completely profitable venture. That being said, choose wisely.