5 Important Factors to Consider Before Starting a Business

Running a new business, regardless of your previous experience, is stressful and anxiety-provoking. There are so many variables that you have to take into consideration before you can open your doors and start making a profit, from legal insurance to making sure your business plan is thorough while not being overly complicated. Managing your finances in business is about careful and confident planning.

These factors will help you and your business down the long road toward success. 

Keep it Simple with a Business Plan

The KISS (keep it simple, stupid) method will save your business from over-micromanagement and driving yourself crazy before your business is even set up. The best way to stay organized and prepared is by having a business plan. A business plan is the first crucial step in starting a business and making everything simple and easy to comprehend. 

A good business plan is a guidebook to help you through each part of setting up your business. In it, you will cover everything you would need to know about your business before making big investments:

• Executive Summary
• Company Description
• Market Analysis
• Organization and Management
• Service or Product Line
• Marketing and Sales
• Funding Requests
• Financial Projections 
• Appendix

Each one of these topics needs to be fully fleshed out before you ever think about putting money into your business. Conceptualizing your business plan puts everything into motion, helping you understand the basics while showing you the big picture as well. This foundation will help you start your business prepared for the unexpected while shooting for the business objective.

Also read: What will it take financially to start my own business?

Traction: Your Businesses Lifeblood (At Least at the Start)

Traction, in business terms, is defined as the progress of a startup company and the momentum it gains as the business grows. Examples include investments, website traffic, blog clicks, likes, follows, downloads, etc. Momentum and attention are hard to get when starting a company, but there are also some convenient and cheap ways to work toward it. 

These things might feel a little like a waste of time because you are not directly selling your product, but they are incredibly important for building a customer base and credibility. You need to get your product out there somehow, and spreading the word via the internet is the best way. 

Payment Processing and Knowing How to Get Your Money

When you’re running a business in these modern times, you won’t be able to make money by being cash only. Credit and debit cards are fast and efficient, and who carries cash these days anyway? To have a successful business, you are going to need a payment processor. Payment processors are a sort of mediator between the customer and you, allowing you to get paid while taking a very small percentage as a fee. Payment processors offer a variety of services that help your business, like:

• Instant check verification
• Sales data collection
• Secure data transmittance
• The providing of a merchant account and/or payment gateway 

Not only do payment processors allow your customers to pay with credit cards, but they provide security from hackers as well, giving both you and your customers the peace of mind you deserve. These services are encrypted with SSL communication channels. SSL provides a secure channel between machines or devices that are operating via the Internet. These days SSL communication channels are the global standard for secure websites and businesses by safeguarding sensitive data that is being sent between two systems (such as a customer’s credit card information), preventing criminals from getting their hands on it. Not only will this protect your business, but this also gives your customers peace of mind that they are dealing with a legitimate business that cares about its customers.

Pick a payment processor that works for you and your budget. 

Love Your Brand

It doesn’t matter how great your product is, your branding is just as important when getting your product’s name out there. A good brand means your product—regardless of what it is—will not only draw in views but will be memorable. Take Coca-Cola, for instance, it’s a product you don’t forget simply because of the taste, but because of its brand. This unforgettable image is what consumers remember when they are scrolling through Instagram or Facebook. It would help if you were passionate about the image and the product it is supposed to represent. Imagine the brand is a pedestal of sorts, on which the product is placed. Remember, a product might be great, but unless it’s brought up high in the air, nobody is going to see it, let alone buy it. 

You Need to be Flexible 

Real winners know that failure is necessary. Like anything else rewarding, running a business is a risky endeavor, but failure helps you in the long run. Every failure is a new lesson to learn about how and why you can improve. If you give up on the first road bump you encounter, your product will never be sold. It doesn’t matter how great this product is, tenacity is a talent that needs to be trained. Patience is the best way to train it.

Patience is a life skill that every successful entrepreneur has. When there is a crisis, they don’t look around to find a solution, because they are the solution. They know that their employees are looking to them for advice and a solution to the problem. You want your employees to treat you with the same respect. Take a deep breath, assess the situation, then get back to work. 

Starting a business is not only about crisis and financial panic though. It’s exhilarating, an opportunity to not only make money but become part of the world economy, something bigger than yourself while showing the world you have a unique product. Now get out there, and get going on that business plan!

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