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Starting a New Business – Things to Consider

African american startup employee working from home gesturing in video conference with colleagues at desk. Small business owner talking with team in internet call on personal computer with webcam.

Starting a new business brings with it many considerations – you can expect a lot of late nights with a laptop open on your knee, and your floor to be littered with screwed up pieces of paper. Funding your start-up is an initial concern that all first-time business owners go through. There are many ways of raising business funds, but one great way of raising funds over time is through Individual Savings Accounts (ISAs) – visit wealthify.com to find out which Individual Savings Account option is right for you.

Before we move on from the issue of funding, a quick word on investors… You may wish to consider attracting an investor. That’s a perfectly normal route for many businesses. However, it’s important to be aware that some investment groups have different goals than yours. They may be interested in supporting your idea solely with a view to selling the business after a certain point. This might not be ideal if you plan on nurturing a long-term attachment to your brand and envision building a lasting legacy.

Establishing the Nature of Your Business

Establishing the nature of your business is the difference between wasting your efforts on things that don’t sell and focusing your energies on promoting only the goods and services for which there is a strong demand. Take the example of the two brothers who started a well-known fast-food chain (yes, those burger brothers). All kinds of foods used to be on the menu, until it was noticed that the vast majority of demand from their customers was for fries, burgers, and milkshakes. A global franchise was born. Understanding your USP is the first step in creating a business that has any hope of longevity. However, that’s not to say that you shouldn’t be adaptable…

 

Focused african american entrepreneur working from home typing and looking at laptop screen in home living room. Portrait of freelancer doing remote work on portable computer at desk.

Establish Good Accounting Practices

If you own your own business you’ll need to establish good bookkeeping practices. This is especially the case if you’re leasing equipment. You’ll have to follow ASC 842 guidelines regarding evaluating leases for proper classification. If you’re considering an equipment lease like many new businesses do make sure you hire an accountant or invest in lease accounting software that can help you stick to the ASC 842 guidelines.
For startups, working with an outsourced accounting firm for startups, can be a game-changer. They specialize in helping new businesses navigate complex accounting standards, including ASC 842, while also offering support for financial reporting, cash flow management, and investor compliance. Following guidelines like this for equipment leases can be tough because you’ll be running a new, fragile business. It’s why so many businesses will use accounting software to help them out and stop chances of mistakes being made.

Adapt and Conquer 

Starting a new business venture often leads to the temptation of confining your efforts to a single, inflexible product or service. However, from the very beginning, it’s crucial to remain vigilant about emerging trends and be ready to pivot according to market demands. While this may seem like common sense, consider the journey of a famous mouthwash brand that originally launched as a floor disinfectant.

Initially, the liquid was marketed for various uses beyond just cleaning floors. It wasn’t until the company recognized a growing demand that they decided to rebrand their creation as a mouthwash, showcasing the importance of adaptability in business.

Know Your Audience 

A significant issue faced by businesses worldwide is the disconnect between brands and their consumer bases. This often happens when brands start to impose their perceptions of market needs onto consumers. The adage “the customer is always right” goes beyond merely appeasing an upset customer with a refund; it emphasizes the importance of truly listening to market demands and responding accordingly. How often have you noticed your favorite brands altering something that was perfectly fine, like changing a beloved recipe or introducing a new design feature that complicates rather than enhances your experience? Such changes can make you question your loyalty to the brand.

Given these challenges, it is crucial for businesses to invest time in researching and understanding their audience. By doing so, they can align their offerings with consumer expectations and preferences, fostering a stronger connection and ensuring long-term loyalty. Understanding your audience is not just a strategy; it’s a vital component of successful branding in today’s market.

Image courtesy of Dragos Condrea

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