Starting a Small Business

Fundamentals of starting a new business

by
Bob Mason
on
2/23/2016
Fundamentals of starting a new business

If you've decided to start a new business, congratulations! This is a new book of beginnings, trial and error, and successes that are all controlled by you. 

There are a number of things you should know about starting a business, but nothing comes to fruition without the fundamentals. Here's what you need to know:

Know your purpose

When starting a business, think long and hard about why you are starting the business and what you hope to achieve. This is the time when you should do your research to make sure you have chosen the right entity, developed your business model, and taken the steps to view the competition.

Capital

You need capital to make things work. You will probably need equipment and supplies. If you're getting a brick-and-mortar building or space, factoring in rent, lights and other utilities is an issue.

Determine how you will raise the capital you need – are you investing your savings? Will you be getting a business loan? Whatever method you choose to acquire the capital, make sure you have at least 6 months of funding in the coffers just in case.

By now, you should have developed a list of fixed expenses that will help determine how much your operating costs will be, in addition to what you need to live on. When starting a business, you may have a lean time before things really pick up, so having extra money to carry you in the beginning is key.

Once you raise the capital, making sure you have an accountant or bookkeeper around to make sure your numbers and financials can carry you makes a tremendous difference.

Marketing

You should take a course or two in marketing and develop a strong sales pitch. You should have a marketing plan that addresses a number of buyer personas, and then think about how to engage customers. Marketing has fundamentally changed, with awareness, social proof and nurturing on the front end of the sales cycle has you develop relationships. 

Getting a website, considering PPC ads, opening social media accounts and a business cards or flyers may work well for you. If you are an expert in something, starting a blog and being active on social media are good choices. This allows them to read and share while you are establishing yourself and your business. 

Patience

You must have enough patience to see the project through. This means no matter what happens, you believe in your business model enough to stick it out and wait for things to turn around. Being ready to close as soon as things get a little difficult is not an option. Owning a business is not for the weak or faint of heart, and knowing what you may encounter prior to starting the business can keep you motivated and focused.

These are the major fundamentals you need to know when starting a business. Everything else you acquire is additional knowledge that can assist. Knowing your business model and how you can take things to the next level not only gives you leverage, but helps set your goals and objectives for success.

Keep these fundamentals at the core of your business and you should be good to go. Starting a business does not have to be hard; you just have to be willing to learn and go the extra mile.

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Bob Mason

Bob Mason

Bob Mason is the founder of Coast Financial Services Inc. servicing both the Santa Cruz, and San Jose areas. Bob Mason is a skilled financial professional who is fully equipped to assist any of your accounting needs. Founding his firm in Santa Cruz, Bob understands the importance of small businesses and how they form the backbone of the area. Coast Financial Services, Inc. has been dedicated to the growth and profitability of businesses in Santa Cruz for 17 years. To learn more about Bob Mason and the rest of his team, visit their website.

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