Setting up a small business for the first time can be a very daunting prospect so many people need advice to get started. Unfortunately the attitude of ambitious people in some cases can be that they don’t need advice. These people will fail more often than not.
The reason they fail is because they have not prepared a good business plan to start with. It may be that they also lack the experience to really know how much capital they need to start up the business or have no idea how to recruit the right staff.
The opening advice starting small businesses is to do some thorough research on the market you are preparing to enter into. Get answers to these questions:
- What is the location like? This may influence costs, security needs and accessibility for customers through public transport and parking.
- Is there a gap in the market for your product or service? Do some market research in the area to see what local people think and feel the area needs.
- What competition is there? It may not make sense to open a new hairdressing salon in a street with three others already established there.
There may be other questions that need to be addressed depending on the type of business so get advice from other successful local business men and women. Your market research should then be included in a comprehensive business plan.
When preparing a great business plan there are many resources available to help people do this. In fact some government agencies offer programs that offer advice on how to prepare a business plan.
A business plan should describe the business, its objectives, strategies, the market and forecasts for expenditure, growth and revenue amongst other things. The business plan is essential if you are looking to secure funding for your new venture, but is also a good tool for measuring the success of the company.
People starting a new business for the first time will also need to work out what staffing levels they need as well as equipment and furnishing. Recruitment can be daunting for some people, so advice starting small businesses can extend to how to recruit and interview techniques.
Recruiting staff is one thing, but also setting a salary level comparable with similar firms in the market and location is crucial. Too low a level will mean you won’t attract good staff. Similarly being able to retain your staff members means being able to keep them motivated with performance related pay, additional responsibilities and perks such as Christmas parties.
Advice starting small business ventures will help avoid the many pitfalls even when you are up and running. All businesses big or small need to keep their accounting up to date so it may be worthwhile taking a course if you intend maintaining your own figures.
Otherwise you should consider employing someone to do this for you if you want to spend time on other things to develop the business. Even outsourcing this function to a private accountancy firm may work better for you. Either way, it is crucial to the success of the business that you are on top of costs and can react to financial issues quickly.