So you have perfected your amazing product, you have secured funding, and you even looked around for a great bookkeeper to help you set up your business! Are you all set for business? Not so fast. Successful businesses were not established on a whim, or on impulse. Recklessness is the adversary of the company’s success. A great product is the foundation of a business, funding will make it run, but without a generous combination of business mastery, sophistication, passion, and unending hard work, the entity will collapse.
Make sure to safeguard your business and your investments by laying down a solid foundation in the inception of your company. All businesses can fail, but with foresight and enough preparation, you can significantly reduce if not eliminate the risks. Here are five important things to do before you start your business;
- Complete a business plan – Every entrepreneur should put into writing details of his business before even trying to start operation. A business plan will force you to go through the business operation cycle, from start to finish. Business processes become clearer when put into a presentation. You will be presented with different scenarios or issues, and be required to solve those too. Have an unbiased person who is also an expert review the business plan for you.
- Test run your product – You would naturally think that you have the best cupcake recipe in town, the perfect location for a flower shop, or the greatest technological innovation. But, will others, especially your intended market think the same? The only way to test your product is by having other people try it. Let friends, and even strangers have a taste of your cupcakes and get their feedback. Testing your products will also give you a better assessment of your clients and customers.
- Know your suppliers – When you were baking your cupcakes for your friends and family, your goal was to provide the best tasting cupcakes. When baking cupcakes you intend to sell, aside from the great taste, good appearance and packaging, making a profit will also be your prime goal. Thus, you will need to look for suppliers that will provide you wholesale prices. Also take into consideration the quality of products and consistency of supply.
- Know your competitors – Your competitors are the entities you will be sharing customers with. A business research is never complete without an assessment of competitors. But, take your research deeper. Do not just focus on the competing products; know also the companies behind the products. Often, it is not the product that sells, but the company selling it.
- Set up a different bank account for the business – Many Brisbane bookkeepers and accountants encounter problems in smaller business entities where the proprietor’s personal money and his business money are all combined in one account. In most instances, auditing for the business is impossible because of the mishmash. More importantly, it is easy to overdraw or use business money for personal expenses.
Transitioning from a plain consumer to one of the producers or providers is not easy. You have to understand the entrepreneurial mentality. Buying is no longer a simple ‘fill my need’ equation. Financing also takes a more complex level. Owning and running your own business has many perks, but it also has a lot of pitfalls and tests, even failures. Make sure that you are fit and ready for the challenge. You don’t have to do it on your own. Take in some people who know the business. Enlist the help of professionals like lawyers, managers, finance experts, and Brisbane bookkeepers to assist and help you set up your business.