So you have a great business idea, now what? Here are some things you should consider before you turn that idea into a business.
1. Your stage in life
The most important thing you have to wrap your head around is that starting a small business is A LOT of work. So you need to take a look at where your life is at right now. Are you a parent? Are you married? Do you live at home? Do you have another job? It’s important to consider all these questions because starting your own company could require 70+ hours a week. If you have younger children who require your constant care, maybe it isn’t the right time. Make sure you are 100% capable of taking on this huge task.
2. Do your research
It’s important that you have a good business idea that will allow you to be successful, however it is also just as important to do your research. For example, if your plan is to open a new gym, you need to make sure you look at all competitors in your area. What do their gyms offer that others don’t? How much profit are they bringing in annually? You need to make sure you answer these questions and also pick a target demographic and study what they’re interested in. You don’t want to be blindsided because you didn’t do your research.
3. Business Plan
You must know your business plan before you jump into this journey. If you don’t have a business plan set in stone, you could fail quite quickly. There are always going to be bumps in the road that don’t follow your plan perfectly, but preparation is key. You should know things like how many people you will hire per year, what roles they will play, how much profit you need to make in order to keep going and many other important factors of running a business.
4. Make sure you understand the legal aspects
You cannot just open up a new business without taking proper procedures. You must understand what is required by you in order to start a small business in your certain area. Different provinces will have different requirements and forms to fill out, so you want to make sure everything is done properly to avoid getting shut-down early.
5. Don’t hire friends
Hiring all the people that are closest to you may seem like a great idea at the time but it could lead to problems. Why not work with the people you trust the most? Well just because you trust them, it doesn’t mean that they are the perfect fit for the role. Small businesses can be difficult to manage in the beginning so there may need to be cutbacks and having to fire your friend could be difficult to do. On the flip-side if you don’t fire them and they continue to hurt the business, that will also end up reflecting poorly on the business as well.