It is difficult to predict the exact path that any start up will take. However, it is possible with planning to gain a good insight into what you can expect. This is an essential step in creating your business path as you will need to know what to expect in order to know the right entity to use.
Business Plan
The first step in any start up is to create a business plan. This is when you will have to decide exactly what you need in order to get your business started. Specifically you should consider the equipment you will need and the cost of this equipment, premises, staffing and even the funds you’ll need for living expenses while your business gets started.
Your business plan should include when you expect to start earning and your financial projections for the future. A good business plan will also list the goals of the business.
Financing
Once you have a good business plan you’ll know how much funds you need to get started and you’ll be able to start locating the relevant finance.
You’ll find the business plan is essential for most finance providers.
There are several options when it comes to finance:
- Business Loan
The first option is to approach a main stream bank or specialist business loan consultant. They will use pre-existing criteria to assess whether your idea has potential and is worth investing in.
- Equipment Loan
The equipment loan is simply finance for specific items that you need. This works much the same as a traditional HP agreement. In essence you are purchasing equipment in installments but have the use of it straightaway.
- Equipment Lease
This is similar to an equipment loan except you pay for the equipment monthly but it is never actually yours. The real benefit is that the maintenance costs are often dealt with by the company you hire the machine from.
- Commercial Mortgage
If you need premises then you may be able to get finance for the purchase of the property or lease. This works in a similar way to a standard mortgage.
- Personal Finance
If you’re looking for a smaller business you may find that the only people that will believe in your brand may be those you know best. This is when you need to see what funds you have and what members of your family or friends may be interested in helping you.
Staffing
The final stage of the startup path is making sure you have the staff you need to get your business started and off the ground. One factor that is often overlooked is marketing staff. No matter how good your business idea is you will struggle to sell products or services if no one knows about it.
Marketing in the modern age means getting online. Social media sites and content are essential to ensure potential customers know what you have to offer.
All of these stages are essential before you can start trading. But that’s only the beginning as you’ll then have to start focusing on achieving your goals and building your business.
