8 Key Considerations for New Business Owners

Every working person sooner or later finds themselves at a career intersection that sets the course of their later professional life. The key dilemma that will come to your mind at that moment is whether you should continue working for others or you should start weaving your own business story.

Those more inclined towards the latter option should stay with us throughout this article.

We’ve prepared a guide for rookie business owners who decide to take the bull by the horns and launch their own business. Moreover, we’ve analyzed some practical strategies for business individuals that should help your business seeds grow fast.

So, buckle up and prepare to learn some valuable information that will help you set off on a successful business quest.

Find a market fit where you belong

The most obvious problem that bothers many indecisive business professionals is the doubt whether they will be able to attract enough customers to their business.

As you may assume, there’s no universal rule for that matter.

What might work great for one professional doesn’t have to bring benefits to others. This is why you should follow the market trends closely before you decide to go your own way.

Basically, people who just hastily quit their current job, hoping that hundreds of customers are waiting only for them will fail to take off properly.

What you can do instead is to try a strategy where you can track the current affairs in your niche from the safe environment of your contemporary position.

For instance, content writers might have noticed that this market is becoming increasingly saturated with new aspiring professionals. At this moment, there are more than 4,000 job offers for article and blog writers on Upwork, as well as more than 2,500 contests for content writers. On the other hand, clients are looking for about 890 copywriters [source].

So, if you’re a proficient writer, you may consider trying to position your business in the content niche, rather than the copywriting field, since you can more easily score a job as a content writer. The same pattern should be applied to every single niche.

Just assess your skills and fine tune them to a specific category of your niche. The more targeted the niche, the better.

That way you’ll adapt yourself to the demands of the market, which is a great start for a new business to attract customers.

Give your mind time to think

At this stage, it’s important to find balance between an uncontrolled jet of ideas and a well-directed string of business thoughts. Also, you shouldn’t discard any ideas that cross your mind, but note down every new idea it generates.

You can find out more about creativity in this lecture by John Cleese. Since this comedian is one of the greatest professionals in his niche, his advice deserves your attention.

Another reason why you should be gentle with your ideas, no matter how silly they might look is the tangible reality around you. Namely, many products that once seemed silly later made their creators millionaires. For instance, you may check out the business story of Walter Frederick Morrison, the inventor of the Frisbee and see that some crazy ideas can bring a lot of money.

In a nutshell, follow these steps when generating the best ideas for your new business:

  • Unoppressed brainstorming – Write down everything you can think of related to your business no matter how crazy it might sound
  • Tie up loose ends – Let your ideas rest for a few days and then get back to them. You’ll see which ones are complete nonsense and which ones can be used in business.
  • Talk to your friends and associates – Share the concepts you consider potentially successful with your near and dear ones. Take their opinions into consideration, but only to a certain degree. The last word should be yours because other people cannot always see the long term vision as you can

Unite your ideas into a business plan

When you’ve narrowed down a multitude of business ideas to a smaller number of more realistic ones, it’s time to create a business plan.

Up to this moment, everything was just a set of theoretical notions about your business. Once you start writing a business plan, your newly conceived ideas will become a tangible agenda. The key decision you should make at this moment is whether your business plan will serve only for your internal business needs or it will also be used to present your ideas to potential investors.

The best solution is to come up with two different versions of your plan. The one meant to win various business associates should be a well-organized and concise piece of writing. Here are the crucial points you should cover in that official version of your plan:

  • Expressing the gist of your business – This summary will set the course of the entire business. For example, if you’re planning to launch a copywriting agency, stress out what will make you different from similar businesses, be it meeting short deadlines, lower rates or any other client-winning features.
  • Avoiding unclear, fluff content – You should show appreciation for every second other entrepreneurs give you. Therefore, hold on to practical and tangible points.
  • Including milestones and deadlines – In line with the previous point, enriching your business plan with temporal features will add to your professional reputation. They will increase your chances of winning target investor’s attention.
  • Adding visual features – Support your key points with proper visual features. For instance, draw a graph with your expected growth rate for a few months in advance. Also, use drawings, photos and presentations to better explain what you want to achieve.
  • Staying realistic – Nobody will work with megalomaniacal entrepreneurs. Business rookies who are looking for investors and business partners should keep their feet on the ground. So, don’t bother those entrepreneurs with your dreams, but tell them how all the interested parties can make profits through your business plan.

Also, you can check this business-planning tool which can be more than useful if you plan to launch an online business, but you don’t know how to make a plan.

Give your business a great name

Although it doesn’t seem too difficult a task, naming a business and later branding based on that name is a strenuous task, so think about that in advance and take some time to create a resounding name.

Even if you come up with an original name, you need to check if there’s another business entity with a similar name.

For example, in the USA you can use the Trademark Electronic Search System (TESS) and see if another businessperson has already christened their enterprise the same way you’d like to. You should find a similar database for your country, so as to avoid any ignorance-induced trademark infringement.

Moreover, make sure your name reflects the purpose of your business, as well as the niche you’re planning to work in. For instance, a copywriting solopreneur could be wittier than an average businessperson when giving their business entity a name.

What’s more, every business name should automatically be a promotional message for its potential clients. To cut a long story short, a concise but catchy, tagline-like business name is the ideal that every business owner should be aiming at.

Consider your branding

Many contemporary articles related to branding tend to overcomplicate this element of business promotion.

For starters, it’s imperative that you know the definition of branding. As explained by Business Dictionary:

Branding is the process involved in creating a unique name and image for a product in the consumers’ mind, mainly through advertising campaigns with a consistent theme. Branding aims to establish a significant and differentiated presence in the market that attracts and retains loyal customers.

As you can see, branding isn’t only your visual identity, but a whole range of interrelated actions that should leave a positive impression on your (potential) customers.  In order to inspire and attract your customers, you should follow some basic branding rules that will push your newly founded enterprise up the business ladder:

  • Engage in social media – Facebook, Twitter, Instagram and other networks can generate a significant following. Still, it’s no cakewalk, so get ready to do an extra push here. Promotional videos, live streaming from important business events, original photos and smart comments will all contribute to the higher popularity of your brand in social media.
  • Emphasize your visuals – Even before you register your business, you should choose the trademark colors of your business. Naturally, they should reflect the niche you work in. However, some restrictions need to be made in terms of colors these days. Skype, Twitter, Facebook and many other online brands have blue and white as their key colors. A new business should aim at something more original that will make them look unique. The Logo Factory website has published a great text about colors and branding, which can educate you about this topic.
  • Connect with people – From your school friends to renowned experts in your niche, to popular influencers, do your best to connect with many ordinary people and professionals on the Web. That strategy of online branding will generate many new leads, resulting in a wide network of potential business partners, clients and connections.
  • Mind the offline environment – Even though online branding is the dominant force these days, don’t underestimate the power of offline branding. The word of mouth is still a powerful tool for popularizing business ventures. So, take part in local and national business events, attend conferences and give your business an offline boost.

Make a budget plan

While business plan will clarify what you want to achieve through your business, it won’t solve your financial problems.

Let’s face it – a new kid on the business block will hardly win trust of traditional financial institutions, like banks and funds. They consider such lending risky.

Because of that, new business owners often decide to apply for government grants.

This is a more feasible option than asking for a bank loan when you’re a business beginner. What’s more, these grants might inspire you to launch a business in a particular niche. For instance, the US Department of Commerce offers business grants for special social categories.

So, instead of asking for a grant for your pre-set and pre-chosen business, you could think about launching a business which they give grants for.

Aside from that, some business professionals ask angel investors for financial assistance. What’s great about this way of budgeting is the fact that every valuable business idea is likely to find an investor. The drawback, however, is that this investor to some extent will get a portion of your shares and sometimes they may even become co-owner of your business.

Moreover, in this day and age, many entrepreneurs turn to online crowdfunding. In this type of funding, you simply present your business idea on one of the popular crowdfunding websites and see how the people react. It’s a good strategy to validate an idea and see if it resonates with the audience.

If they like what you’re planning to achieve through your business, they’ll make donations for your business project.

Keep your books in order

Now that you’ve started branding your business, you should prepare for the moment when your clients start rolling in. Since people enter the business arena for both professional and monetary reasons, it’s imperative to ensure proper conditions for the financial race you’re about to take part in.

One of the major preconditions for lucrative business management is to keep your financial books in order.

What you should first do to meet that goal is separate your private money from your business funds. There are various kinds of business accounts for different types of businesses. This is something you should bear in mind when you’re registering your business.

Two most practical types of business for new business owners are sole proprietorship and Limited Liability Company (LLC). The choice between these two will depend on your business plan and its goals. Also, entrepreneurs who work with investors might want to establish a partnership.

This is why it’s wise to consult an accountant before you register your business. When they see your business plan, they’ll tell you what type of business you should give advantage to.

Apart from that, it’s always useful to have a reliable bookkeeper by your side, as long as you run a business. Business details such as accurate and quick invoicing, tax returns and debts all need a touch of professional expertise.

Since your main task will be taking care of the managerial side of the business, you should establish a collaboration with a top-notch accounting consigliere. Collaboration with such a professional will give you a safe net for your finances, which is something every new business owner needs.

Recruit workers to reduce stress

The last point in this guide for new business owners deals with work organization and stress.

On the one hand, there’s no business success without hard work. On the other, too much work and stress will backfire on you, resulting in exhaustion, burnout and reduced efficiency. According to the study analyzed in the Harvard Business Review, long work hours lead to lower productivity. New business owners are extremely prone to excessive work, due to their great ambition to establish a successful business.

When you notice that you work double shifts in order to cover a range of work that would otherwise be done by two or three people, you should start hiring additional staff members.

Luckily, great professionals can be easily found online nowadays, thanks to numerous freelance websites and social media groups.  Nevertheless, looking for workers offline is also a practical strategy, especially for businesses that mostly work in the non-virtual reality.

Conclusion

Starting a business is a ground-breaking decision.

When you set your foot on that path, it’s important that you envision what your life will look like in the next few years.

You can expect a lot of hard work and vague financial benefits. However, launching your own business means taking responsibility for your own life.

Although it could be difficult at the beginning, the experience of unfolding your own business story will boost your self-confidence and make you a self-reliant businessperson.

Mark Thomasson
Mark is a biz-dev hero at Invoicebus - a simple invoicing service that gets your invoices paid faster. He passionately blogs on topics that help small biz owners succeed in their business. He is also a lifelong learner who practices mindfulness and enjoys long walks in nature more than anything else.
Mark Thomasson

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