Do you want to start a business and be your own boss? It can be the most thrilling and rewarding experience of your life, but it can also be challenging. Many start-ups don’t succeed; this is typically due to two factors: Lack of efficient planning; and lack of sufficient funding. In this article, you’ll learn how to circumvent both these obstacles and start your business off on the right track, giving you an edge on your competition and increasing your chances for success.
Properly planning your business before you start is essential. If you want to start a business, the first thing you will need is a business plan. This is a detailed document that sets out exactly what your business intends to do (are you a service provider, a wholesaler, a retailer, etc.?), who do you intend to sell to (who are your target customers and what is the size of the market?), and how you intend to make money (what is your revenue model and break-even point? Is it possible for your business to be profitable?). Your business plan will also cover external factors such as the state of the market (is this a new market? Is there a lot of competition? Is it growing / shrinking?), your competition (how many competitors do you have? How successful are they? What can your business do differently?), and any other relevant information.
Think of your business plan as a sales-pitch to investors. Even if you won’t need external funding (more about ways to fund yourself in the next section), a business plan is a great exercise as it forces you to think through and analyze all aspects of your business. When you start a business, sometimes a great idea just isn’t enough. Take the classic example of the perfect mousetrap:
Legend has it; one inventor came up with an ingenious mousetrap that eliminated all the negative aspects of previous mousetraps, improving the process substantially. Problem was, this new and improved mousetrap was priced at $20 whereas the inferior mousetraps sold for $2. While customers appreciated the new improvements, the need for a superior mousetrap just wasn’t great enough to justify the price. Ultimately, the business failed.
Another familiar pitfall for those who start a business is to offer a product or service that just isn’t profitable. When you start a business, you may be tempted to enter the market at a price point much lower than existing competitors – but beware; if you come in too low, you may never realize a profit and your business won’t make it.
This is where proper planning and a thoroughly-researched business plan can help. If done correctly, a business plan will highlight potential problems with your business model so that you can address them before going to market with your idea.
When you start a business, even the best idea with the most potential for profits can fail miserably if you don’t have the funds to sustain yourself through the initial stages. No business is profitable right away; it takes time and diligence to build a thriving and successful business. Unfortunately, many would-be successful entrepreneurs are forced to close shop early as they just run out of money. Don’t let this happen to you. Plan for the money you will need according to your business plan and see to it that you can obtain the needed funds before you start a business.
The most popular source of funding for budding entrepreneurs is traditional banks. Depending on your credit history and collateral, securing a bank loan could be a prudent move for starting a business; but keep in mind, any money loaned from a bank must be paid back, with interest. Ideally, you want to start a business with capital – money from yourself or investors that doesn’t require repayment.
If you don’t have the capital yourself to start a business, asking family and friends to support you can help. If your family and friends don’t have the funds, or are unwilling to contribute, there are many investors you can approach that are looking for new business opportunities in which to invest. However, keep in mind that investors will be looking for a return on their investment and therefore expect a share of the profits.
The best solution is to come up with the capital on your own. This can be a difficult and daunting task, but achievable if you have structured settlements or annuities that you can sell. The lump sum payment you receive from selling structured settlements or annuities can help give your new business the boost it needs, and best of all – never has to be paid back! SellYourStructuredSettlement.com will get you the most money for selling your structured settlement or annuity.
Are you ready to sell your payments? Start off on the right track by calling SellYourStructuredSettlement.com today at (800) 543-6513 or requesting a quote.