3 things you need to know before starting your business

Starting your business is a life changing experience for most people who make the leap, and it can help you to achieve your wildest dreams. However, before you make it onto the Forbes Rich List, there are a couple of things that you need to take care of:

  • Have a clear idea of what your business or service will be. Sounds obvious, but you need to know exactly what you’re selling.
  • You’ll need to know who you’re selling it to – who forms your market.
  • Where will you get the money? All businesses have costs, even if it’s just going to be you and a laptop – business e-mail, software, etc. Do you have your funding sorted?

When you start your own business, it is likely that you will have to spend money before you make money. This is the part that stops a lot of people from starting up on their own – it’s not that the funding isn’t there, it’s just that they don’t know how to look for it. To find the right funding for your business, you can use the government guide for starting a business, as well as Totally Money’s Cheapest Way to Borrow tool. This tool doesn’t just tell you what funding is available, it also shows you which options are suitable for how much you want to borrow and for how long, and will cost you less – an important detail when you need every spare penny that you have.

You never know where the funding for your business might come from. Even a visit to could end up in a lucky boost to your finances.

It’s also important to register your business before you start reaching out to audiences and advertising, as if your business isn’t registered someone could copy your idea and beat you to it.

In order to get business funding, you will need to write the ever dreaded business plan. Big, scary words, those. Except they aren’t, not really, but we respond to them in the same way as we respond when we have to write our first CV. There are many decent business plan layouts available on the web, and writing a business plan will help you to get your ideas in order.

You will also have to provide a cash flow – don’t be daunted by this, as it will give you an accurate perception of how you can expect the business to grow, what setbacks you might face, and what it will cost to get your baby project off the ground and flying.