Despite the global health crisis, many start-ups—particularly in America—have increased from 3.5 million in 2019 to 4.4 million in the year COVID-19 broke out. While most of the general population would perceive this as a time of recession, the people behind these start-ups think differently. But of course, not everyone who started a company or business gets to see it through successfully. Hence, here are the things that you need to have before starting your own business.
Of course, businesses typically require capital, such as when running a real estate business. Others may reason that several successful people started while they were broke, and some have started with little to no capital, more so within the comforts of their own home. Yes, for exceptional cases—for the best and the brightest. This is not to reduce you or dishearten you; this is just something that we have to be realistic about. Say you came up with a business model that requires no capital; you would still need money to survive while putting up your business, so if you have a day job, don’t quit just yet.
There will also be dull days when nothing seems to be happening, and the sale remains stagnant despite your efforts. You have to have money while your business is still not generating profits.
We’re not just talking about any idea here; we’re talking about an idea people would want to trade their hard-earned money for. Many people may have the money, but several have no idea where to put them. Starting a coffee shop may be good, but this is not a new idea. It is perfectly acceptable to come up with a traditional business or what others have already done as long as you can already put your creative touch or unique twist that will make your business stand out.
An idea without a plan is like an unwritten book—it will remain just as it is. Hence, you have to develop a sustainable system that can run the operations smoothly, or at least only a few alterations will be needed in the coming years. If you are going to do a franchise, no need to develop your business model. All start-ups are different, so you have to build a business model that will perfectly suit your vision for your company.
If you are going to produce a product, you’ll have to determine how to do it—will you do it, hire other people, or acquire another company’s services? You’ll also deal with other vital aspects such as distribution, accounting, compliance, sales, and marketing. If you’ll offer a service, it’s almost just the same. These are equally important since having a great product or service meant nothing if not marketed well; higher sales cannot be celebrated peacefully if the accounting is not done right.
The Right people
The people you initially share your ideas with are pivotal to the establishment of your business. Aspirations shared with the wrong people are likely to die since not everyone may understand or support your vision, even your family or friends. The right people are also needed to keep your company in operation, so, in the beginning, you must work with people who have the same vision. You can eventually add others who will contribute more ideas. If you have the wrong business partner or hired the wrong employees, it can break your business.
Mindset is the most important of it all. It is a combination of optimism, stamina, and vision. Some people want to start a business simply because they want to get out of their 9 to 5. They just find out later that they had to work about 12 to 15 hours a day as a business owner, and getting a day off won’t mean their minds will be off their businesses. Also, start-ups are not like jobs where you work about 12 to 20 days and get paid after two weeks to a month.
There are instances when there will be no sale at all, and others make you feel that your business is a failure. It can take years—even decades before you get to where you have envisioned. Thus, having the right mindset will get you through the challenging phases until you reach your goals.
While we see the fancy and luxurious lifestyle that business owners live on social media, it is not easy to get where they are—unless, of course, one is born with a silver spoon, and a rich mindset was taught early on. Have more than enough money, a great idea, an actionable plan, the right people, and the entrepreneurial mindset, and you’ll eventually get there.