Do you have an idea you were always looking to pursue? Or have you already taken a leap of faith and started your own business?
Kevin Vlietman, the commercial executive at Transaction Capital Business Solutions, says, either way, the reality is that starting a new business is easier said than done.
Here are 10 things you should check off your list before becoming your own boss:
Do proper research
One of the biggest mistakes that new entrepreneurs make when starting their own business, is not doing background research on the viability of a specific business idea. It’s important to realise that you can’t just jump into something because you are passionate about it, you need to understand the market, the competition and the potential evolution of the business.
Put together a business plan
Put together a proper business plan that includes a Swot analysis. This way you can weigh up the pros and cons of your idea, categorise your target market, identify the need for your idea in the market space, as well as how the idea will be executed.
Finances, finances, finances
Having your own business, or starting a new business, comes with a lot of associated expenses. Without a solid cash flow strategy in place or that extra cash to fall back on, it’s most likely that your business won’t be able to grow as fast as you would like, nevermind sustain itself. However, there are options like making use of invoicing discounting and taking out a business loan against your personal, business assets or collateral, that will make your business’ cash flow work better for you.
It’s important to register your company with the Companies and Intellectual Property Commission. However, before you can do that you need to decide what kind of entity your new business is going to be. You can register for a sole proprietorship or partnership, for example.
Bring in a mentor
Everyone needs a mentor, that one person that can be your voice of reason and that you can bounce your ideas from. But it also could be a financial partner or an organisation even, who can be a helping hand to manage the finances, credit, etc, while freeing up your time to manage the core business.
Choose the perfect name
Times and trends change all the time and as such, it’s important to choose a name that will still be relevant 10 years from now. Do some research as to whether the name that you want to use, hasn’t already been used by another business to differentiate yourself and mitigate any brand risks.
Have a proper risk strategy in place
It’s important to be realistic in terms of your business being a success. It’s a scary thought, but there is a chance that your business might not work out as you planned. So, be proactive and have a plan of action in place in the event that your business doesn’t work out.
Network all the time
To ensure that your business is successful, you need to ensure that you are constantly connecting and networking with people within your relevant industry and possible potential clients for your business. You can do this by going to networking events, talking to a lot of people within your industry all the time, and setting up meetings with successful people in your industry.
Outsource core functions such as credit risk
Having a sound credit risk mitigation strategy in place is an integral part of running a business, or even starting one. This can be sourced out to a third-party organisation, by providing you with the protection against financial loss due to default from debtors. This can be a cost-effective tool to help you manage your credit risk effectively.
Now that you have all the above tips ticked off your list and all the necessary questions answered, the only thing left to do is to get cracking.
By Kevin Vlietman, Commercial Executive at Transaction Capital Business Solutions