Questions when considering starting a business

Is your business idea either:

  • A need that is not really being fulfilled by something else.
  • A need because other businesses cannot keep up; supply is less than demand.
  • Can your business complete with other similar companies.

Do you need a business plan? Yes, do write objectives, budget, strategies, and present connection in the marketplace …etc. But remember that the world you interact with is an unknown factor. It will take trial and error to find out what works; you cannot decide in advance what people want and how they will react, but you can almost certainly discover what they want and need, and run a suitable business to cater to it. Set objectives, but be flexible in your approach and make changes in light of new information.

More than a few businesses fail due to lack of funds. If you don’t have the finances to keep afloat for at least six months it might be better to start saving before you start a business, or at least work part time while setting up the business part time.

What is success in business? Some would say making a profit, some would say stability. Don’t fall into a trap and say that enjoyment is success; you won’t enjoy it for long if you go bankrupt. Then again, if you find something you do enjoy you will be far better motivated. Use this when deciding your line of business, as motivation is a key issue. Then again, some people start businesses because they want to fill a social need, and this is a safer bet. Others expect their job to be a job, but earn the money so as to enjoy other aspects of life. If you turn a steady profit in a stable business, then you have achieved at least some success.

Can a business be run from Home? Some can, some can’t. Check with local zoning laws. You can work around this, however. A restaurant can’t usually be run from home, but a catering business can.

Look into online methods for every aspect of any business idea. At the very least you can promote it online, Google to find way how. Consider selling through EBay and other services.

Start a bank account with your business tittle. It will make thing easier, especially at tax time, and it looks far more professional. Same goes for emails, a post box address and anything that similar businesses take for granted. Look at getting a website, and seriously consider getting one built.

Look into licenses and credentials …etc. You don’t want to be caught out on this; credentials are there for a reason; if you are not properly informed you might be causing problems elsewhere without knowing it. Your PA radio microphones might interfere with emergency broadcast services, your renovations might disrupt sewerage or mains lines. No one considers these things till they trip over them. Get qualifications if they are even remotely relavent.

Look into insurance where necessary. This is self-explanatory.

Get a tax agent to do your return, at least the first time. He or she will know at least some solid business methods for optimizing you operation. Details from the tax system will help you with deductions and business discounts. You come out ahead if you learn the details, and don’t know how many opportunities you miss if you don’t.

Always find out the situation with the government and tax department. It is free to register a business, and apply for a tax file number. Do this straight away.

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