A lot of people come up with great ideas for new businesses -- and a lot of people act on these when they feel they are in a position to do so.
But just because you have a good idea, doesn't mean you are ready to start and manage a business.
Before starting your business, ensure you have solid plans in place for not only how you will establish your organisation, but also how you will run it on an ongoing basis.
Ensure your success by planning your finances carefully, having policies in place, knowing you can make a return, building your brand, and taking every precaution to protect your businesses' vital data through onsite and offsite data storage.
1.
Have enough capital Before even starting your business, you need to make sure you have the financial resources to cover anything that could happen -- not just the start up phase.
Don't expect to make money in your first year, and expect you will need to cover all costs in those initial twelve months at least.
Most new businesses fail during the first six to twelve months, many because they don't have the financial backing to run a business that is not making profit, for that period.
Not only do you need to ensure you have the dollars to back your first year of operation, you also need to have a rainy day fund for any unforeseen issues.
2.
Infrastructure setup Before commencing operation, it is important to have your infrastructure set up complete and fully operational.
While the product or service side of your business is important, without strong infrastructure -- accounts billed and paid on time, hardware and software set up, marketing material in place -- the business will not get far.
Focus on ensuring everything will run smoothly in the front and back office before you open your doors.
3.
Protecting your assets Your day-to-day work, intellectual property, and operational information are your company's biggest assets, so it's important you look after them.
When your IT team, or external IT support service sets up your system, make sure they include a full and regular back up system for all your data.
In addition to this, think worst-case scenario and consider an offsite backup service as well -- what would happen if a natural disaster or a fire destroyed your office? 4.
Start with clear policies If you are commencing operation with one employee or twenty, you still need clear policies in place when you open the doors -- these will govern your practices with customers or clients, conduct, billing and a range of other important areas.
If clear policies are in place from day one, your business should not run into any problems down the track when it comes to legal and positive practices, which means operation should go a lot more smoothly.
5.
Market yourself A lot of people make the mistake of thinking if they open a shopfront and get a website, that is marketing taken care of -- a lot of those people are likely the ones whose businesses fail in the first year.
Strategically marketing your business from day on, not only builds brand equity and makes your business more valuable, but guarantees you ongoing customers -- so long as your operational aspects such as pricing, fall into line.
Before opening, consult a marketing professional and work with them to develop a strategic plan that will last for the year.
This will be a bit of a cost, but will be an investment in your company's future.
But just because you have a good idea, doesn't mean you are ready to start and manage a business.
Before starting your business, ensure you have solid plans in place for not only how you will establish your organisation, but also how you will run it on an ongoing basis.
Ensure your success by planning your finances carefully, having policies in place, knowing you can make a return, building your brand, and taking every precaution to protect your businesses' vital data through onsite and offsite data storage.
1.
Have enough capital Before even starting your business, you need to make sure you have the financial resources to cover anything that could happen -- not just the start up phase.
Don't expect to make money in your first year, and expect you will need to cover all costs in those initial twelve months at least.
Most new businesses fail during the first six to twelve months, many because they don't have the financial backing to run a business that is not making profit, for that period.
Not only do you need to ensure you have the dollars to back your first year of operation, you also need to have a rainy day fund for any unforeseen issues.
2.
Infrastructure setup Before commencing operation, it is important to have your infrastructure set up complete and fully operational.
While the product or service side of your business is important, without strong infrastructure -- accounts billed and paid on time, hardware and software set up, marketing material in place -- the business will not get far.
Focus on ensuring everything will run smoothly in the front and back office before you open your doors.
3.
Protecting your assets Your day-to-day work, intellectual property, and operational information are your company's biggest assets, so it's important you look after them.
When your IT team, or external IT support service sets up your system, make sure they include a full and regular back up system for all your data.
In addition to this, think worst-case scenario and consider an offsite backup service as well -- what would happen if a natural disaster or a fire destroyed your office? 4.
Start with clear policies If you are commencing operation with one employee or twenty, you still need clear policies in place when you open the doors -- these will govern your practices with customers or clients, conduct, billing and a range of other important areas.
If clear policies are in place from day one, your business should not run into any problems down the track when it comes to legal and positive practices, which means operation should go a lot more smoothly.
5.
Market yourself A lot of people make the mistake of thinking if they open a shopfront and get a website, that is marketing taken care of -- a lot of those people are likely the ones whose businesses fail in the first year.
Strategically marketing your business from day on, not only builds brand equity and makes your business more valuable, but guarantees you ongoing customers -- so long as your operational aspects such as pricing, fall into line.
Before opening, consult a marketing professional and work with them to develop a strategic plan that will last for the year.
This will be a bit of a cost, but will be an investment in your company's future.
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