5 Things You Need to Know Before Starting a Small Business

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Starting a small business is exciting, but also nerve-wracking. There are so many things to bear in mind if you’re setting up a small business – from VAT to marketing. Whilst this guide is by no means comprehensive, it will list the 5 essential things you need to know before starting your small business. 

  • Research your market

No matter how great your idea for a small business is, it will be a drop in the ocean if you don’t know how to make a ripple (or a wave). Researching your market, figuring out who your target clients or customers are, and understanding your competitors are essential steps to take before starting a small business. 

  • Keep meticulous records

From day one, you should ensure you are keeping meticulous records in a place that is safe and easy to access. Before you can do this, you need to figure out what records you need to keep, what format they should be in, and what they’ll be used for. Finding useful invoice templates is one step in this process, but you should also find out how your business will pay taxes, if you need to register as a VAT business, and what information you need to record. 

  • Define your expertise and niche

What does your business offer that others don’t? Why should clients or customers choose you? If you can’t answer these questions, it’s time to go back to the drawing board. New businesses are cropping up every day, so unless you’re the next Bill Gates, chances are you already have a lot of competitors out there offering similar or identical products and services. Take time to define your expertise and niche so that you can return to this definition when promoting yourself. 

  • Figure out your startup costs

Successful small businesses require a lot of preparation and figuring out your startup costs is essential to this. Typical startup costs for small businesses include:

  • Office space, equipment and supplies, and utilities
  • Legal requirements like licenses, permits, and insurance
  • Inventory costs
  • Employee salaries
  • Advertising and marketing costs such as paid advertising and making a website

Clearly set out your expenses. This will help you figure out long-term profits and is also a requirement if you need to attract investors. 

  • Wise up on marketing

Marketing isn’t as straightforward as paying for adverts or sharing posts on social media. Effective marketing strategies for small businesses require careful thought and preparation – and they can be costly. Before setting up your small business, make sure you understand how marketing works, what type of marketing will be most effective for you, and how much time and money you’ll need to put into your marketing plan. 

Setting up a small business is no small matter and these five tips to consider before you get started are essential. That said, anyone can set up a small business and with a great idea, plenty of preparation, and the support and advice of those around you, you’ll be off to a good start. 

About Author

LaDonna Dennis

LaDonna Dennis is the founder and creator of Mom Blog Society. She wears many hats. She is a Homemaker*Blogger*Crafter*Reader*Pinner*Friend*Animal Lover* Former writer of Frost Illustrated and, Cancer...SURVIVOR! LaDonna is happily married to the love of her life, the mother of 3 grown children and "Grams" to 3 grandchildren. She adores animals and has four furbabies: Makia ( a German Shepherd, whose mission in life is to be her attached to her hip) and Hachie, (an OCD Alaskan Malamute, and Akia (An Alaskan Malamute) who is just sweet as can be. And Sassy, a four-month-old German Shepherd who has quickly stolen her heart and become the most precious fur baby of all times. Aside from the humans in her life, LaDonna's fur babies are her world.

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Ethan
Ethan
30 days ago

Thanks for sharing! I am confident that for a new business to “shoot”, it is not enough to come up with a product and determine a price for it. It is also important to prepare the soil well. It’s also important to respond in time and deal with handle fluctuating traffic.

Daniel Tan
Daniel Tan
13 days ago

Thanks for your advice! I think that many are now following technology trends and using digital solutions for business development. A good mobile app or website can improve your chances of getting a good start for your business. However, don’t forget about on demand testing services that can help you make a good product.

David
David
4 days ago

By automating and standardizing these actions with the help of airslate tools, you will be able to establish effective communication with customers and ensure a continuous dialogue between the departments of your company. And, as a result, to retain customers and increase the profit of your business.