Friday, February 08, 2008

Six Things to Consider When Starting a Business

Of course there is a lot to consider when starting a business. Here are a few thoughts.

1. If your industry (or even a closely associated industry) has a trade group, association or annual convention consider attending it. You could learn a lot about the suppliers, customers and even about your "competitors" in the industry. A good opportunity to network.

2. Check the internet for "forums" where smart individuals from your industry might meet. Get a great glimpse of some of the important issues and problems in your industry.

3. Seriously consider getting an online presence. Many businesses today have websites as a central and crucial part of their business. Many industries will have a hard time surviving without a web presence.

4. Get a good lawyer and accountant before you need them. Do a business plan to help focus your thoughts.

5. Get yourself a good computer and the software that might help you run the business. Sometimes, specially when you are starting out, good decisions here can save you a lot of money.

6. Decide what you want to outsource and what you will do yourself. Do a self assessment. Identify your strengths and weaknesses. Mitigate your weaknesses by perhaps outsourcing that task or working with others who complement you.

You do need to cover operations, cashflow/funding, and marketing. Businesses rise and fall on their customers. Make sure you have a solid plan to acquire customers with a timeline, budgets and goals. Once you get a customer remember it is far cheaper to retain a good, repeat customer than it is to acquire a new one. Treat them well.
Of course there is a lot to consider when starting a business. Here are a few thoughts.

1. If your industry (or even a closely associated industry) has a trade group, association or annual convention consider attending it. You could learn a lot about the suppliers, customers and even about your "competitors" in the industry. A good opportunity to network.

2. Check the internet for "forums" where smart individuals from your industry might meet. Get a great glimpse of some of the important issues and problems in your industry.

3. Seriously consider getting an online presence. Many businesses today have websites as a central and crucial part of their business. Many industries will have a hard time surviving without a web presence.

4. Get a good lawyer and accountant before you need them. Do a business plan to help focus your thoughts.

5. Get yourself a good computer and the software that might help you run the business. Sometimes, specially when you are starting out, good decisions here can save you a lot of money.

6. Decide what you want to outsource and what you will do yourself. Do a self assessment. Identify your strengths and weaknesses. Mitigate your weaknesses by perhaps outsourcing that task or working with others who complement you.

You do need to cover operations, cashflow/funding, and marketing. Businesses rise and fall on their customers. Make sure you have a solid plan to acquire customers with a timeline, budgets and goals. Once you get a customer remember it is far cheaper to retain a good, repeat customer than it is to acquire a new one. Treat them well.