They say the hardest part of any journey is taking the first step!
That first step is not only a scary one, but it is also a critical one. There are many questions that should be asked before one step has been made in the direction of business ownership. Questions like:
What am I going to sell?
Who is my target audience?
What price level should I start at?
What type of entity should I establish?
What is my liability?
How much does it cost to create my company?
These are all viable questions that should be answered before you head down your new journey. Consulting with a business advisor is always your best option. Your advisor will help you understand where your pitfalls are and where you can and should highlight your strengths. Truly understanding the types of entity structures and the pros and cons of each will help you understand which type best suits covering your own individual risks most properly as well as serving you best for not only your start up period but long term.
Once you have decided on the type of business you wish to be, the next important aspect is building your game plan. A budget and business plan can help you understand where your business can go, but it can also help you analyze your success and failures. Budget to actual numbers will show you where you are versus where you thought you would be. I always like to ask questions regarding budget to actual each month, such as how come the revenue the company generated is so far off? Good or bad numbers are a telltale of what the business has become. The numbers allow you as the business owner to change course as needed. Reviewing your budget and business plan quarterly will help you keep on your path and maintain your course on your journey!
