Top 10 Considerations when Starting your Own Company
This post originally appeared on blog.up.co
GenieBelt are sharing the considerations that you will have when you are starting up. GenieBelt participated in Startup Weekend back in 2012 (then it was GenieInspect).
According to recent reports, more and more people are looking forward to starting their own companies. In case you too are thinking of setting up your own company, it is essential to note that: the distance between the thought of starting up and finally being able to take action is usually extremely vast. In addition to this, there is the sad reality that majority of the people presently thinking of starting their own companies would never see through their plans.
In case you are amongst those who are launching their businesses then welcome to the adventure. First off, it is essential to understand the fact that the odds are not in your favor but again that is precisely why you are doing it. In the event that you decide to bridge the gap and take the plunge know that you are definitely on the right track.
In addition to all of the above, below are the top 10 considerations when starting your own company. They include the fact that:
1. Your business might fail.
In the process of planning to start your company, you should know that in case you fall in step with some of the finer details, chances are that your business will most definitely bite the dust. As a matter of fact, according to reports, the overall business failure rate is set at around 90%. These statistics factor in issues such as the industry type and failure time frame. In addition to the general fact that your business risks failure, it is essential to understand the fact that timing is equally of significant importance.
2. You are bound to have competition.
In case you are thinking of starting your own company, do not think that you are the only one with that idea. Just so you know, at any given point and time, there are usually several others who are competing for the same customer base. As a matter of fact, some of your competitors may even be better than you. For instance, their branding may seem snazzier than yours; their marketing budgets may seem larger than yours etc
Since you can’t possibly avoid or get rid of the competition, the best thing to do not to be discouraged by it. Just so you know, without competition, you could easily become lazy and lose your edge. This being the case, it is strongly advised that you embrace the competition and improve because of it.
3. You will need to embark on learning more than you already know.
According to reports, many entrepreneurs who set out to start companies do so because they have a detailed overview of the kind of business niche that they are venturing into. Having the talent alone and the expertise to accompany it does not necessarily serve as a guarantee for success when looking forward to setting up your company. Just so you know, you will need slightly more in terms of scalability, marketing, software, sales, laws and software in order to make the business a success.
4. You will need a significant amount of money to spend
Companies can be bootstrapped (launched with nothing more than one’s existing cash or resources). What’s more, these same companies usually require a significant initial capital apart from good financial planning. One perfect place to get the initial capital for setting up a company is leveraging small business loans. Take note, you should prepare yourself to spend money and also protect it being the valuable resource that it is.
5. You will not immediately succeed.
You will agree and support the fact that the title of business owners is usually in most cases associated with Bentleys and Rolexes. Take note, the harsh reality of the matter is starting a company is more of a soul sucking adventure rather than an income boosting experience. Take note, even though riches may be in your future, fact is, the path to achieving them will most definitely be long and hard.
6. You will need to obey laws.
Just so you know, in each and every country there are business regulations which you would need to comply with in case you are looking to start a company in any particular country. Taking this into consideration, it is strongly advised that you perform due diligence in order to have a clear idea of what compliance in the region you are looking to invest in entails. In the process of doing this, it is strongly advised that you closely pay attention the company registration, licenses as well as taxes. The last thing you need is finding yourself in legal mire as a result of your own laxity.
7. You can never do it by yourself.
The lone ranger entrepreneur is usually such an extremely romantic image. Even though it may seem extremely economically provocative, it is not accurate. Just so you know, on average, startups with a single founder usually have such a high likelihood of failure because of the emotional pressure which startups are known to exert upon individuals. At the bare minimum, start your business with a founder or even three. In addition to this, employ several different independent contractors alongside your preferred service providers to supplement your knowledge, time, commitment and talent.
8. Your target customers won’t immediately come flocking.
It is essential to understand the fact that regardless of how innovative your idea may be, it is not a guarantee that customers would immediately find you and start flocking your way.
9. You would be tempted to quit.
In case you are looking forward to starting your own company, you should let this be the last course of action. Just so you know, at some point of time, expect to be tempted to quit, in fact, you will be racked with doubt forcing you to consider jumping ship.
10. Staff Classification
You should also pay close attention to how you staff classification is done as this is the only way through which you would be able to make good of your idea once you plan is in motion.
Everything taken into consideration, it is essential to understand the fact that it is only you who can make it happen for yourself.
Don't forget you can stay tuned with Startup Weekend Copenhagen, on social media with #CphSW