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Starting a New Business – Things to Consider

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 (far too many to go into here, so we shall move on), but one great way of raising funds over time is through 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 normal. However, you should be aware that some investment groups are only interested in supporting your entrepreneurial idea with a view to selling the business after a certain point, and therefore may not be suitable if you plan on nurturing a long term attachment to your brand. 

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 …

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. 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.

Starting a New Business - Things to Consider

Adapt and Conquer 

When beginning a new business venture, you may be tempted to pigeonhole your efforts into a single rigid offering or service. From the outset, you must ensure that you pay attention to emerging data and be prepared to adapt to the market. This sounds like an obvious thing to say, but take the example of a well-known brand of mouthwash, which started out as a disinfectant for floors. The liquid was actually marketed for a few other purposes besides floors as well, before the company settled on rebranding its invention as a mouthwash (in response to demand). 

Know Your Audience 

One of the major failings across the globe when it comes to business is a disconnect between the brand and the consumer base. This occurs where the brand begins to dictate the market needs to the consumer – the saying “the customer is always right” isn’t just about giving somebody a refund to make them stop yelling, it’s about listening to market demand and acting appropriately. How many times have your favourite brands changed something that wasn’t broken, such as a recipe change or a new design feature that is more hassle than it is worth? All of which leads you to consider your brand loyalty. For these reasons, you should always take time to both research and know your audience.