Small business owners face numerous challenges. Most can relate to finding customers and marketing their goods or services, with each industry often experiencing its own set of unique obstacles.
Small businesses face unique obstacles. If they hope to secure federal contracts, small firms must adhere to government regulations regarding revenue size.
Getting Started
Building a small business takes hard work, dedication, and strategic planning; however, with expert resources at your fingertips and knowing what steps to take next, getting off the ground could be much simpler than imagined.
Conduct market research to gain more insights into your audience, their needs, and where your product or service might fit within the marketplace. Use this knowledge as the basis of your marketing and sales strategies.
Consider what type of business structure you would like to establish before beginning work on it, as this decision will affect both legal and financial ramifications for your venture. A sole proprietorship is one option which makes set up simple but leaves you personally responsible for any debts incurred through debt collection efforts and legal matters that arise as part of its operation.
Register for state and local taxes that vary based on industry and location. A skilled accountant can assist in staying ahead of these regulations to ensure your business remains compliant.
Finding the Right Space
Finding office space is an integral step of starting any small business, yet can often prove challenging. Here are a few essential considerations when searching for the ideal spot.
Asses the size and needs of your team and how much space is necessary. This will enable you to determine what type of office to rent. In addition, consider amenities available with each space such as a fitness center that may encourage healthy work habits.
Ideally, client-facing businesses should choose a location near public transportation so clients can easily access their office. When choosing an appropriate space for your company, keep scalability in mind by projecting what will happen within one to three years; this can help prevent money being spent on unnecessary spaces that won’t be utilized. It may be helpful to work with a commercial broker when searching for office space to ensure you’re obtaining the best deal.
Getting Licenses and Permits
Entrepreneurship can be one of the most fulfilling experiences one can have, yet it comes with its share of challenges. One common mistake new businesses make is failing to secure all required licenses and permits before starting operations – an oversight which can lead to fines or shut-down.
Many small businesses require various licenses and permits from different jurisdictions. Most often, this comes from state agencies; however, some might also be federally regulated.
Federally-required licenses include those required of businesses selling items like firearms, alcohol or lottery tickets; this process typically includes an extensive application form process. Many small business owners take advantage of online services to determine what licenses they require as well as assist with completing applications and maintaining compliance. Obtaining such licenses also increases a company’s credibility as customers are more likely to trust a business with evidence of its legality.
Managing Money
There’s an old proverb: “Give someone a fish, and they’ll eat for one day; teach someone how to fish, and they can feed themselves for life.” Small business owners need a full understanding of finances – knowing both how much to spend and how best to increase revenue.
One of the key money management strategies for small business is creating a budget. Doing this will allow you to set expenses and income goals and ensure you have enough funds on hand for expenses and unexpected costs.
Setting SMART goals can also be an invaluable way of staying focused and meeting business objectives. Achievable, Relevant, Timely goals will keep you on the path toward your business goals.
An ideal approach for starting any new business is opening a separate bank account to keep personal and business spending separate, track the development of your company over time, and use apps such as PlanGuru or Square to manage finances more effectively.
