There is no shortage of young entrepreneurs and new innovative ideas out there, but so many of us struggle to find the right place to start.
The start-up phase of a new business should be exciting, there is so much satisfaction in starting a business from nothing. But it can also be exasperating, you will face unforeseen obstacles and you will have to prove your concept to funders or investors and possible business partners.
You also must think about processes, personnel, and assumptions and to top it off, there are those sleepless nights and even some failure before you succeed. But once it is off the ground, the feeling of satisfaction and achievement outweighs all the hard work and effort upfront.
To be successful and focused on the journey, you need the right advice and support around you.
We have put together 3 lessons worth contemplating, before or whilst starting a new business:
1. Create a Business Plan
Having an idea is great but having a legitimate business plan is key!
It will help you with the steps you require to launch your business.
And it will give you a significant advantage to:
– Obtain a loan if you have no cash
– Receive investment capital
– Grow your business
Read through our blog on Writing an effective business plan – The Do’s and Dont’s.
2. Secure appropriate funding
You will need adequate capital to get your business off the ground.
Without proper financial planning, your business doesn’t stand a chance.
The startup costs will vary from industry to industry, no new business is the same and your funding will depend on your situation.
Around 82% of businesses fail due to cash flow problems. Therefore, your Cash flow forecast is crucial to identify your funding gaps and seek financial support or investments.
– Angel investors
– Venture capitalists
– Family & Friends
Just be conscious when you go down the investor’s route, you do not want to give away significant equity in your business before you even started.
Investors are busy and may not have the time to read through your entire plan, therefore ensure you have a proper executive summary.
It is important to pitch your idea effectively, know your numbers inside out, verbalise your strategy successfully, refer to your business plan and make sure that they have a presentable copy of your plan.
3. Surround yourself with the people who believe in you and your vision
Be humble and ask for help where you need it.
You will need all the support you can get to ensure that your start-up is successful.
Unless you are an expert in finance, accounting or the law, you might want to think about surrounding yourself with people who are, and make sure that they believe in you and your vision. These professionals can explain legal requirements and tax obligations based on the structure of your business and advice on business insurance.
Think outside the box, outsourcing can be an affordable way to manage tasks and get work done without hiring staff from the get-go.
Visit our Accounting & Finance Outsource page for more information on outsourcing and our Virtual CFO services to learn more about how we can add value to your business through experience and commitment. We handle all the duties of a CFO and monitor the financial health and well-being of your business at a fraction of the cost.
Surround yourself with people who believe in you and your vision and can help you in the spaces that are not your strongest areas of expertise.
Now that your administrative groundwork is done, you can start with branding & marketing.
4. Digital Presence
Create a website, don’t wait for the day your business launch to get your website off the ground, it is never too early to start promoting your business. Depending on your business, you can even start taking online orders and start generating income through your website. This was one of Tesla’s great successes.
Expand your digital presence, in today’s day and age you can’t afford not having an online presence. Once your website is running effectively, expand your digital footprint on media platforms like Facebook, Twitter, Instagram, and Snapchat.
Lastly, prepare for anything. Launching a startup is not easy and planning for hurdles along the way is wise. Getting discouraged when something goes wrong is normal, however, don’t let the speed bumps become roadblocks. Lean on your supporters and push through!
The difficulties you will face as part of launching your business will prepare you for the road ahead, as every business goes through a lifecycle of peaks and troughs. There will be mistakes and setbacks and some of these will even be out of your control. People will come and go and sometimes you will even make the wrong decisions – but all that is OK!
Recognise and learn from your mistakes! Always pay your bills and operate within the confines of the law. Proper planning and execution will limit and help you face and fight through any obstacles in the future.
We pride ourselves in being respected and successful business partners and deliver outcomes with integrity and high work ethics that will be invested in your business.
Visit our website to find out how we can support you with Financial sense for business success.
Other Beyond Financial helpful links:
Some other links that can support you in setting up a business:
ASB Start-up checklist: https://www.asb.co.nz/business-banking/guidance/start-up-checklist.html
IRD Starting a new business: https://www.ird.govt.nz/situations/i-am-starting-a-new-business
Govt. Business Guide to starting a business: https://www.business.govt.nz/getting-started/taking-the-first-steps/10-step-guide-to-starting-a-business/