Do you want to put up your own business? Don’t be too hasty, as you must first understand the various concerns in starting a new business. These concerns aren’t meant to dissuade you, but rather inform you of the things that you need to know. Here are the following:
Businesses operate in an environment filled with internal and external factors. Before putting up a business, you need to understand what those internal and external factors are and how they can impact your business.
Internal factors are controllable factors that affect your business, which isn’t too worrisome if you have the right strategies to overcome them. Examples of internal factors are your business organization, your team of employees, and the business’ working capital. On the other hand, external factors are those that you cannot control. These external factors include your local government, your target market, your customers and suppliers, and even bankers.
In choosing an office, you can either rent space in a commercial building, or you can run your business in your very own home. Having your own office space gives the business its own address where customers or clients can drop by your office, giving you a sense of professionalism and credibility. On the other hand, having a home office gives you the convenience of not having to travel for work and having access to all your home supplies and equipment that you can also use for business purposes.
If you choose to have a separate space for your business, take note of the rent and utility expenses such as electricity and Internet connection. Also take note of the surroundings of the office building, as it should at least be accessible to public transportation or parking spaces that can get you to travel easier. If you choose to have your office at your home, have it in a separate room that is away from distractions. Regardless of the type of office, you’ll need office equipment and furniture such as filing cabinets, worktables, and office chairs.
There are a number of personal responsibilities, planning, and preparation when starting up a business. Preparation involves a lot of paperwork, such as a business plan, advertising prints to market your business and make your business known, and registration forms to make your business legit and recognized by the government.
Another personal responsibility is that if you’re currently working in a company, you’ll need to divide your time between your job and your start-up business. Some people even quit their full-time jobs in order to pursue their business — and leaving your job is a big decision you’ll have to make. On the plus side, you’ll devote your time to building your business and making preparations.
Starting up a business also involves people, and you’ll need to find the right people who can support your venture financially and otherwise. Investors and bankers are your trusted people who can give you the money to start up a business, provided that you present them your business plan. Friends and relatives are the people who can refer you to their networks who can be your prospective clients or customers. Your current or former workers and colleagues can also serve as your contacts, customers or clients, as long as your business will not offer the exact products that the company is also offering.
Building a business also means making some sacrifices, and these sacrifices mean foregoing the things that you normally can’t live without. For example, if you want your business to be open for 12 hours a day on weekdays, this means reducing your time for hangouts with friends, dinner dates, and social gatherings. However, this doesn’t mean you’ll have to give up your free time altogether — it’s all just a matter of good time management.
But the biggest personal responsibility of all is that you need to be patient. In starting up a business, you need to start small and you need to keep up your drive in order to reach your business goals. Every successful entrepreneur will tell you that success doesn’t come instantly. It takes determination, passion, perseverance, and patience to build a successful business.
Needed time and effort
The amount of time and effort it takes to start a business may vary depending on the resources that you have. But in most cases, starting up a business can take one to two years.
In the preparation stage, you will need to draft a business plan. This plan needs to list down everything about the business — not just the products or services but also your business operations, your marketing strategies, your core people, and your financial projections. Preparing a business plan can take at least a month as you will need ample time to study factors that are relevant to your business.
You will also need time and effort to raise business capital. If your business requires a lot of capital, you will need to make the most of your time to raise funds, especially when you have a target date of launching your biz. If you have a current job, it’s best to reserve a portion of your salary as funding for your business. You can also go to your preferred bank to apply for a business loan, but the banker will require a copy of your business plan so make sure your plan is impressive and detailed. You may also borrow money from your friends or family, but be prepared to answer their question of when they will get their money back.
In addition, registering your business can also take time. A business requires that you follow the standard registration procedure which vary per state or city. Such steps include getting a company tax identification number, acquiring business permits, licenses and certifications, registering for Social Security and Medicare, and so on.
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