What needs to consider in starting a small business?
Starting a business can be an inspiring idea especially for first-time entrepreneurs. Deciding to start a small business is a great decision, yet, it can also be challenging, stressful, and not as simple as it looks like. Small business has a remarkable percentage of all businesses in the province. There are various types of employees and depend upon their workers for success. Since a lot of jobs are given by small businesses, the economy prospers due to their success.
Things that need to consider before having a small business
- Nature of the business
An important thing you need to think about is what you can offer. You must choose to select the following, either merchandising, service, or manufacturing.
- Target Customer
Having a product or service to sell will not be profitable once customers will not buy it. If you plan to begin a business, you must study if there is a market for it. Identify who will be your customers.
You must identify or determine the best location for your business. Your business must be nearest or be seen by target customers.
Once you know to whom you’re going to sell, what to sell, and where to sell it. You must think about how you’ll form the business. You can choose on partnership, proprietorship, or corporation.
- Single proprietorship- you’re the only owner of the business
- Partnership- you can divide the business with either your partners or other persons. You must have at least 2 people to form a partnership.
- Corporation- you can register as one person corporation (OPC) or divide the business with (2) two or more individuals.
For you to start a business, you must have capital. It is the value or amount you need to put in the business to get it operating or starting. It can either be non-cash or cash. List down all the spending you may spend. Such as lease payments, assets to purchase, operating expenses, renovation, and others.
- Lease, Renovation, and Improvements
Another thing to consider is if you will rent out a space. Usually, when renting, lessors need advance rent and security deposits. Also, rental space needs improvements and renovations. You have to list these costs in your business plan.
Identify and look for possible suppliers needed for you to produce the goods or services you will sell. Consider their location, price, reliability, and operating hours.
- Operating Expenses
List down all the spending and expenses you need to manage the business. Such as rent, utilities, salary, office supplies, and many more, see here.