The business has the potential to provide not only for a family but to support generations as compared to jobs. Business is the main propelling force for the world where it provides goods and services alike. In the present trying times of Covid-19 Pandemic, millions have lost their jobs as most of the businesses suffered. This shows the significance of business and its role in the lives of human beings.
Starting of a new business is not an easy task to undertake. While counting on personal, educational and management strengths, a novice entrepreneur has to critically evaluate the finances required for starting a business. If you are one of such enthusiasts intending to plunge into such venture, this article will certainly help you.
Finances for Business
Finance is the soul of business. Without adequate financial resources, a business cannot last long. And for effective financial support, you need to search for available resources to feed your business. Some viable options are mentioned in the succeeding paragraphs:
- Bank Loans. You may find it interesting that, in the year 2020, about 70% of small businesses have applied for a Cares Act Loan in the USA (according to Washington Post)*. Though getting an instant loan from a bank is not easy, there are some good-natured banks like Quick Loans NZ from where you can get the desired loan within a day.
- Business Grants. Grants are like loans, but they need not be paid back to the donor agencies. There are certain schemes offered by the governments for small scale businesses which may prove to be very helpful in the sustenance of business in the start.
- Investors. Investors are people who want to invest their capital in a business for getting the profit share. However, what they are looking for is the capability and potential of the business, along with the expertise of the entrepreneurs. A fresh businessman needs to exercise vigilance while engaging any investor in the project.
- Crowdfunding. It is a new concept and has made a number of companies grow in the past couple of decades. Crowdfunding platforms may be engaged in getting financial support and consequent joint profit.
People never plan to fail. They fail to plan. A business venture without accurate and the well-deliberated plan would never see the success. Before entering the business world, you must ask certain questions to yourself which may include, but not limited to;
- What is your goal behind starting a business?
- Who is your clientele?
- What are your end goals/targets?
- How will you finance your startup and recurring costs?
Market research is one of the most crucial steps in starting any business. It is a broad term and includes a number of measures to be taken. The foremost being the available gap in the market. Another important element is the study of demography in which you have to evaluate the attitudes of people, their education, socio-economic status, spending power, and their preferences towards business.
While conducting market research, it is pertinent to take into account the means by which the local population is earning their livelihood. This may include industry, agriculture, and technology etc. in order to get a clear and complete understanding. You should meet the people, and have interviews with them, discuss the current market situation with senior entrepreneurs and conduct surveys.
Legal Status/ Registering with Government and IRS
Before registering your company/ business with the government, you need to decide the type of your business. It could be one of the following types:
- Sole proprietorship – You will be the only responsible for the outcome.
- Partnership – In which you have someone as your business partner.
- Corporation – Where a group of companies act as a single entity.
- Limited liability Company (LLC) – Which has limited liability on its owners for the debts of the company, if any.
Documentation is an integral part of doing business. This process not only provides you with a record of your performance but also keeps the business legal and protected. The registration process needs preparation of legal documents for which you may need the assistance of a legal expert. Acquiring the National Tax Number and the company’s portfolio will formally enable you to launch your business. If your business needs a state/ country permit or license, don’t forget to acquire it on the earliest available opportunity.
Building Your Team/ HR for Business
Human resource is the backbone of every business. Without an efficient workforce, it’s impossible for any company to run successfully. You need to realize that a worker is as important for a company’s take off as is its product. It is the worker who is producing the product for your company. A CEO of the company must have the vision and competence to identify the gaps in the HR section and the means to address them.
Make Your Business Known To Public
Before selling your product or service, you need to advertise it extensively. People need to be prepared and made aware of your product. They should jump in as soon as you open literal or figurative doors for business.
Branding and advertising can be accomplished by a number of means. To mention but a few are:
- Local Advertising Agencies – Includes banners and pamphlets etc.
- Company Website – Complete company profile and its services.
- Social Media Marketing – Marketing through Facebook, Linkedin, Twitter, Instagram, Youtube etc
- Exchange Marketing – Collaboration with other companies for the exchange of marketing.
Grow Your Business
Anything stagnant will vanish. Businesses have life, and they must grow. To keep your business afloat, you have to constantly look for new avenues. Consider the following points in this perspective:
- Collaboration with other brands – A great way to give a boom to your business. You may provide some free services/ product in exchange for the promotion of your brand on their website.
- Association with some charity organization – Offer some services or invest some time with such organizations to make your presence in society.