What to Know Before Starting Your Small Business {Complete Guide}

Starting a business can be filled with periods of both financial and emotional turmoil, and it’s important for one to know what they’re truly getting into before undertaking the responsibility of starting a business. Even though starting a business is no easy task, there are certainly ways one can set themselves up for success if strategies are applied, and pitfalls are acknowledged.

One of the first steps is brainstorming a list of potential issues that could arise. The sooner one can think of issues, the sooner one can brainstorm solutions. If these issues do eventually rear their head, there is already an outlined strategy on how to tackle them.

Strategies that one may not have been aware of in previous roles may be essential to implement in the new role of starting a business. The following are three helpful tips to employ when starting a small business.

Recognize What’s Been Holding You Back

One of the easiest pitfalls of starting a small business is giving into a sense of pessimism, which can lead to one’s desires being clouded when it comes time to put a business plan into action. While it may seem that optimism could lead to naiveite towards potential issues, one should focus on finding a balance between optimism and realism.

One should remind themselves that obstacles are inevitable and that it’s natural to have moments of hesitancy when diving into the endeavor of starting a business. Airing out feelings of doubt enables one to properly reflect on what may be holding them back.

This can help distinguish between issues that can be easily addressed, ones that all prospective business owners face, and ones that are legitimate deterrents.

 

Be Meticulous with Your Budget Plan

It’s no secret that money or lack thereof is one of the primary deterrents when starting a business of any size. This is due variance in every entrepreneur’s personal budget, as well as the type of business and location. One of the worst things one can do is severely underestimate the cost of starting a business.

Realizing that there isn’t enough money to start the business, or that long term costs weren’t considered during the planning stages can cause irreparable damage.

This could put one in a position where they are attempting to climb out of the red to keep their business afloat. This can be extremely difficult to overcome. These types of situations reiterate the importance of the planning process. Once a budget is set, it’s best to triple that number.

It’s best to allow for generous wiggle room in the budget since a business may not see returns on profits for a considerable amount of time. Additionally, unforeseen business costs can quickly derail a business budget.

 

Be Open to Feedback and Criticism

Fear of sharing a new business model/idea with others is completely natural. Most people fear negative feedback and possess perfectionist traits that prevent them from wanting to share imperfected work. In order to overcome these feelings, one must remind themselves that throughout any long process, there will more than likely be things you want to change, so waiting until it’s perfect to begin marketing it is not necessarily the right call. All businesses undergo change over time. 

Owning a business is in an ongoing process of identifying and remedying issues. When it comes to dealing with negative feedback, the most important reminder is to not let that feedback impact you on a personal level. Take the feedback and deal with it a constructive way. Think of it as possible insight as to what may need to be changed.

Some of the most innovative solutions have stemmed from negative feedback. The more familiarized one is with their target audience, the less negative feedback there will be to deal with. One should investigate what strategies other established companies have implemented.

One may discover an effective strategy that they can expand and build on. The most relevant feedback will come from your consumers. Prioritize networking and communicating to optimize this relationship. Poor communication can prevent a business from taking off. Stepping outside of one’s comfort zone in terms of communication may initially feel scary but can be incredibly rewarding once it starts to pay off.  

 

This is a small glimpse into the strategies that should be taken into consideration. Starting a business requires extensive research and is a massive commitment. One may see success sooner, if they face issues head on rather than ignoring them until they fester. It’s perfectly natural to have feelings of doubt, but when potential business owners set realistic goals, create detailed budgets, and, prepare themselves for criticism, a strong foundation will be set for success.

The above article, “What to Know Before Starting Your Small Business,” was written by Matt Edstrom, Chief Marketing Officer of GoodLife Home Loans. Matt completed his undergrad in Chemical Engineering at MIT and earned his MBA from Northwestern University’s Kellogg School of Management. He’s been responsible for starting and managing several brands, including his most recent endeavor, GoodLife Home Loans. Matt is an expert in finance, human resources, and business development.