Important Considerations When Starting a Small Business

Getting your new business off the ground requires planning, personal effort and time. Start with a concept, view yourself in a business setting and think about how you are going to generate revenues from your product or service. Additionally, make sure you implement a means of keeping track of your business activities, especially a good accounting system.

Here we explore key considerations when starting a small business:

• What
• Where
• Who
• How

What is the idea or product?

You’ve made the decision to start your own business… what is it that you are trying to accomplish? Is this idea going to require marketing? Or, is the product going to require customized packaging? Be sure to include costs associated with your idea/product into your planning.

Where is the idea or product going to be developed or produced?

Production, development and direct costs are a large factor of most business operations, whether it be a production facility or a retail space rental. Make a list of what you think your costs might be and don’t forget to include the cost of utilities.

Who is the customer?

Make a list of who you believe will purchase your idea or product. A great question to consider is: can you afford to sell at a wholesale price or do you need that retail price markup? Another thing to consider is: where will your customers come from?

How will you bring your idea or product to market?

Aside for the enjoyment of having your own business think of distribution venues, advertising venues and delivery options. Be sure to list as many expenses as you can so that you don’t find yourself in debt or unable to continue business activities.

Conclusion:

Plan, plan, plan and always overestimate your expenses to avoid cash flow shortfalls. Expenses are ever-changing but if you know how much you need you’ll know how much to bring in. A good accountant professional can help you keep track of your finances while you focus on the growth and development of your business.