The success of a new startup largely depends on some of the first steps that the founders have taken. TRUiC CEO Nagabhushanam “Bobby” Peddi says that entrepreneurs who are talented in a field they are passionate about, come in their thousands to learn how to better plan and manage their businesses. The TRUiC group of companies recently crossed the 1M traffic bar per month, among highly targeted visitors who are desperately looking for good start-up advice.
According to angel investor Joseph Laziness (MBA): “We look closely at a few basic elements to determine the level of organization of entrepreneurs before investing. And yes, valuation is always affected by better organization ”.
Here’s what entrepreneurs should think about in the early stages:
- Have a plan.
Starting a business is difficult. There is a lot of information on the Internet that can make it overwhelming, so it’s important to find a good plan. It is probably safe to say at this point that you have an idea of the type of business you want to start. The question is how to get there. What is your goal and what do you need to achieve it? Are you opening a nonprofit with a mission? Do you have a statement to make with your business? You will want to think about the type of business that you will be. Is there something you are going to defend? Is there an appearance you want to achieve? Do you have a partner or an investor? Once you have an idea of what you are looking to do, start thinking of smaller details like the names, locations and size of the ladder you are trying to reach. Try to put things in your mind and on paper so you can keep track of where you’re going.
2. Do your research.
With your plan in mind, you will need to determine whether you are opening a company, an LLC, or a sole proprietorship. What are the differences and advantages of each group? Are there any rules you should take into account when opening it? Do you have an idea of how you are going to make money with your business, but have you broken down operating costs and revenues? If you sell an item, how much does it cost to produce that item versus how much will you sell it? How do taxes work for you? You will likely be working with a registered agent to define some of your business needs. Do you know where and how to find one? How to choose the initial staff? How do you get an EIN? Where will you create your corporate bank account?
There are many places to search for these answers, one website in particular called TRUiC (The Really Utile Information Company) has gathered resources to help you understand these things. Be sure to take a look at their
You are also going to want to do market research for your business. Will it be based online or in a specific location? Where is it best to advertise this business? If it is a location, where can you find the right people to do the jobs you need and the right people?
3. Choose the right people.
Employees and management can be so important to your business. Don’t take someone’s good advice for granted. There will always be things you wouldn’t have thought of or things you didn’t expect before you started the opening process. This is one of the reasons why it is important to make connections. Start-ups are a culture and a career choice for many people and it’s not a bad idea to take advantage of them. While you are hiring your staff, you may see candidates who are starting a business and who are leaving within two years for another business. These people may not have longevity in a business, but they have one thing that others do not have; experience with startups. This experience can be very useful, especially if we are talking about senior management candidates because they will have seen things that you cannot plan for. Take their advice and tips into account. Connect with other people who have been involved in a start-up for the same reasons. There is going to be a lot of information coming your way, but don’t turn a blind eye to what only experience will show. Get involved in the culture and try to find employees and connections with people who share the same goals and values as your business.
4. Plan your policies and procedures.
When a business starts up, it is important to have good policies, procedures and documentation in place. From my personal experience, a company that changes its policies repeatedly begins to appear less credible to employees and management. It is important to make sure the documents are clear and precise as much as possible the first time. Try to cover all situations that may arise regarding the document or policy. If necessary, look for policies from similar companies that have more experience to give you an idea of what to think about. Never forget, rules are not created until they are needed. So try to think of each situation and how your employees / management team represent your business. It is also a way to appeal to the right employees. To give an example, if you offer similar rates of pay and benefits to the companies you compete with, your policies may set you apart. Perhaps you have a better maternity or attendance policy. When we go into the details, these things can make a huge difference.
One of the biggest steps is to get started. Once you’ve developed your plan and done your research, take the first step. There is so much to do to lay the groundwork for your project. Start talking to a registered agent. Start working to get through all the paperwork. Start looking for your first director. Take the plunge and invest in your idea. If you are opening a company, start looking for investors. Take all the right steps in the right way, because planning can only get you so far. The greatest successes have just taken the plunge.
What else can we do to move forward?
Accountant, author and coach Michael Stemley of HNWI says ongoing cost analysis for new companies is crucial. It is taken up by the financial and commercial expert Handel “Del” Henri, owner of HH Investments. Del Henri says that once a business is up and running, it is crucial to review its costs so that savings and overhead can be reduced to increase profitability. Regarding the e-commerce sector, Henri says, “To prove the point here, let me use an example of a case that I am often faced with: simply by changing the payment processors to a more affordable option, this could add $ 2 million a year to a national business in the United States. “.