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Things You Need to Know When Starting a Business

So you’re starting a business – and what an exciting time it is! You’ve got your idea, your plan, your enthusiasm and your energy. But what are the five main things you’ll need to know when you start? Try our handy guide to get you thinking.

5 Things You Need to Know When Starting a Business

Have your plan properly mapped outbusiness

For many small businesses, an idea grows quickly and action rapidly follows. And this is ideal to capitalize on the energy and seek to fill a gap in the market before a competitor does. However, it’s still important to spend time planning properly and understand all the different factors that will affect your business. You’ll have to think about your business model, your competitors, the strengths, opportunities, weaknesses and threats of your concept (also known as a SWOT analysis) and the actions you’ll take to mitigate any weak areas, your funding sources, your product or service costing – and more. Even if you write it down, you’ll also need to have your business plan in your head and be able to explain it to a variety of people in different ways – whether that’s a 30-second marketing pitch for a potential customer or a comprehensive analysis and explanation of the offer to a potential investor.

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Get the right people involved

With this in mind, it can be useful to get help from a more experienced business person who has done it all before and has plenty of advice to share. Business coaching is a great way to develop your skills and knowledge and learn from others, so you can apply relevant insight to your own activities and avoid making the same mistakes! A good coach, mentor or business ‘angel’ will share your passion for business and encourage you to succeed, while challenging you too in the right way to ensure that you’re covering all the angles.

Know your strengths

Be clear about what you’re good at and where you’ll benefit from bringing in additional people with complementary skills as the business grows. If you’re a natural-born salesperson, but struggle with operational delivery and fulfillment, then don’t simply recruit someone who’s like you. Look for an operational manager who can deal with orders and delivery, so that you start to build a well-rounded team. Likewise, if you’re an absolute optimist who only sees roses, then make sure your next team member is a resolute pragmatist who will challenge and question your assumptions in a different way and help create a more balanced business team for long-term success.

Know how you’ll fund your business

Finance is perhaps the biggest stumbling block for new businesses, especially in today’s challenging economic climate. So make sure you know how you’ll fund your business, whether that’s with a bank loan, your savings, up-front orders, an investor, a grant or a combination of these. It’s worth getting the help of an accountant to plan for this.

Get your tax affairs sorted from the start It’s dull perhaps, but hugely important to make sure at all costs that you register with the HMRC as a new business and start to keep books from the start. Different financial records are required depending on your size and nature of business and an accountant is useful for maintaining the books and advising on tax efficiency. This will allow you to focus on building the business. Many SMEs swear by having the services of a good accountant or tax-advice firm to help them trade efficiently and legally.

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  • http://www.axlppi.com AXL Powerhouse

    TAMA.. ILIKE the tips u gave amp. na miss ko tuloy si Robert Kiyosaki one of the best writer in terms of business.

    • http://www.herbertkikoy.info Herbert

      Thanks for that AXL

  • http://www.carizzachua.co.cc Carizza Chua

    thanks for this. im starting up my business but we cant launch it anytime soon cause we still dont have enough funds for all expenses. you think a bank loan would be good for a beginner like me?

  • http://www.wiztechie.com/ Ameer

    Yes, I do believe you need to get the right people involve. I mean you want to team-up and hire someone you could trust or rely on, and that’s very important for a business.

  • http://sayitnessie.wordpress.com Ness

    Thanks for this. I’ve been working for like yrs now and I always think of putting up my own business. But I still don’t have the courage to start it. Hehe. Thanks for sharing!!

  • http://www.madonnarobinson.com Madonna

    Some very valid points here. Unfortunately, very few small business owners have formal business training before they begin.

    Training is essential for most people. I’m glad I decided to complete a Certificate in Small Business Management before starting the business. I agree with you about having a business plan, but I think writing it is very important.

    Madonna

    • http://www.herbertkikoy.info Herbert

      Thank you for the interesting comment Madonna

  • http://www.budgetbiyahera.com/2011/01/escaping-storm-south-bound-style.html#disqus_thread Mai_Budget.Biyahera

    I was able to touch up on these guidelines, back when I was taking a business class course in college. And the one thing that really stuck to me was finding my products USP. When you’ve finally plotted this out, the rest will fall into place.

  • http://www.strawhatluffy.com Arwin Adriano

    Thanks for sharing. Having a business is difficult but getting into one without proper planning is having yourself bankrupt without even starting.

    • http://www.herbertkikoy.info Herbert

      You’re welcome Sir

  • http://www.wanderinggene.com Gene

    Right business planning talaga ang key and working with the right people. I’m glad that we didn’t made a mistake with the small business my hubby and I helping our in-laws with.

  • http://gmirage.com Matsumoto

    I should have read this long ago. We didn’t get to undergo a business coaching phase I guess, but it’s all good, I think we can manage…”I think” :d

  • http://pinoy-md.com Pinoy.MD

    these are very helpful.. 😉 i’ll take these tips when i decided to have my own business ;))

  • http://www.keepthetailwagging.com Kimberly Gauthier

    Since I’m funding my business, I’ve had to learn to budget properly and maintain a monthly P&L to keep track of costs and revenue; a marketing coach suggested a simple business plan, which was truly an eye opener.

    I’m learning this one day at a time and appreciate this post.
    Kimberly

    • http://www.herbertkikoy.info Herbert

      Thank you Kimberly

  • http://arimaraykd.blogspot.com/ marri

    planning a business seems to be more difficult and complicated than starting it because, it requires good strategies. once everything is completely placed in blueprint, the next following steps will be easier to accomplish because of the well-prepared plan.

  • http://www.tsinoyfoodies.com stacy

    I wish I can apply this tips someday. MY problem is having sufficient capital. I hope to be freed from corporate slavery someday and own my own business. I’ll remember these tips.

  • http://www.momsupsndowns.com/2012/03/why-you-should-invest-on-good-patio-pavers.html Rossel

    So true. I can relate because I was once a business woman. :) I think you must also have the passion for your choice of business. Your chances at success and satisfaction are greater if you love the work you do.

    Thanks again for this post.

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