Having a realistic business plan is a must to opening a new business. Let’s look at some of the important issues to consider before jumping in the deep end:
– Figure out the money
– Viability
– Market Research
– Sales Approach
– Branding
– Website / App
Figure Out The Money
How much will it cost to open your business? Depending on the business, the cost can range from a few hundred dollars to tens of thousands and more. At minimum there should be legal and accounting fees.
If you are purchasing an existing business, the purchase price and closing costs must be considered. A franchise comes with franchise fees. There is a cost to create the business entity. Operating the business requires inventory, advertising, marketing and banking fees. Rent, utilities and insurance. Employee or contractor fees. Taxes and licensing fees. If you are building or renovating a structure, these costs must be considered.
Before diving in head first, know what it will cost to open the doors. What you think it will cost will probably grow as you get closer to opening day. Build in the need for more money than you estimate. Then know how you will finance and pay to make it to opening day.
This is not all. Once you are open for business, what are your operating costs moving forward? What will it cost to get though the first month, quarter and year? Build in a cushion, because circumstances beyond your control can set you back. Many businesses take as long as 3 years to turn a profit. How will you pay your personal expenses till you can take a salary / draw?
It can feel overwhelming. Being prepared will lead to success and a stress-free experience.
Viability / Market Research
How viable is it that you will succeed once the doors are open? Even if you have the funds to open the business and get by the first few months or year, can it survive? Will it be a success in 2 and 3 and 4 years?
You need to research the need for your service or product in the area you will serve. If a physical location is important, is it easily accessible and visible? Don’t spend money on a location that may not be important to your success. Is there a better location or means to do business? Is your expected profit margin enough to survive and provide you with a good living?
Sales Approach
What is your sales approach? There are as many approaches and hybrid approaches to selling as there are products, services and entrepreneurs. Soft sale, hard sell, consultative, solution, etc. This is a work in progress that needs to be considered and adjusted continuously.
Branding
Make your business a household name. Make sure when someone needs your service or product that you are who they think of first. Logo, business cards, brochures, promotional products…. There are many ways to get your name and image out and keep it fresh and relevant. This is critical. You never know when someone will need or want you, but when they do, you want to be who they think of first.
Website / App
Having a website that is also mobile friendly is essential. Cell phones and computers are the modern-day phone book. Newspapers are barely a few pages. What were advertising mainstays even 10 and 15 years ago won’t get you by today. A strong website and social media presence is essential.
More than 29 years of experience qualify the attorneys at Bellenot & Boufford, LLC to help you get off on the right foot, making sure you have the greatest chance of succeeding in beginning and in growing your business. We make sure you are safe and know how to stay out of trouble. Remember, the cost of doing things correctly is nothing compared to the cost of doing things incorrectly, because you just didn’t know.
