Before you decide to start a business, be a self-starter with these 6 tips
If you’re considering being self-employed, as an entrepreneur you’ll face many challenges, but the bottom line is – you won’t succeed if you don’t do the work. Starting your own business won’t be easy, but with a lot of dedication and preparation success may come easier than you expect. So if you're planning to start your own business, we've compiled a list of things you should do before you become self-employed.
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Evaluate your situation
Conduct an inventory check your skills, interests and motivations. From there, examine which of these factors are profitable. Where you'll be setting up shop? Will your business operate from home or will you need to lease an office? Becoming self-employed takes a considerable amount of time and it can change your life dramatically, so it's important for you to reflect whether you are willing to sacrifice your present lifestyle. Lastly, audit your bank account to see if you have the finances needed for this endeavor.
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Analyze your business idea
Is there a demand for your service or product? Find out who your competitors are, and determine what you'll need to successfully compete with them. Think of your target customers and how you will serve them - this will be the foundation of your marketing strategy. As you analyze your business idea, this will help you understand the skills and resources you’ll need to run your business.
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Develop a plan
Develop a business plan and list out what industries you will target. You should start researching potential suppliers and maybe even partners. And lastly, do some rough calculations on what your business expenses would be, and what your profit expectations are.
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Register your business
Most businesses fall under two types: sole proprietorship and partnership. A sole proprietorship legally has no separate existence from the owner, which means business income and losses are recorded on your personal tax return. The other option, partnership, is a legal business operation between at least two individuals who share management and profits.
If you’re unsure how to determine which model your business falls under, you may need to seek advice from an accountant or business advisor. Whichever business type you choose, we recommend you to register the business to avoid future headaches.
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Financing and funding
Without money, you might have a hard time getting your business afloat. Calculate how much funding you’ll need to cover your business’ essential overhead and how much you'll need to carry forward after that. You may be eligible for a small business loan or a government grant. If you plan to finance your business with investors, forecast for the future, how much will you be willing to sell in shares?
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Network
Networking is a must for all business professionals. Building your professional relationships and network provides many benefits. Moreover, it will help you find professional help when you do decide to start your business.
Responsibilities of being self-employed
Understand that being self-employment carries certain responsibilities and duties. Moreover, it’s important for you to oblige to the legal responsibilities to avoid future complications. Unless you are an experienced past business owner, you will most likely have to work with business legal advisors, accountants, and more. Working with these professionals will help you save time and allow you to avoid unnecessary struggles on your way to success.
Transitioning from your 9-5 grind to self-employed business owner will take time. When preparing to be your own boss, there are various ways to prepare for this lifestyle. Consider what you can do even before you start being an entrepreneur, like networking with other like-minded individuals.