What Entrepreneurs Need to Consider Before Starting a Business

Social norms suggest that in order to be considered “successful” you must go to school, get a degree, and work your way up the corporate ladder. This idea—basic formula if you may—probably came from decades upon decades of accounts of people who have reached the summit of success. However, not everyone is privileged enough to go to university, let alone receive proper education from the grassroots level. It’s for this reason that many tend to resort to their innate skills and unrelenting hustle. Today, advancing your career doesn’t necessarily require tens of thousands of US dollars, as there have been plenty of alternatives and opportunities out there that can act as your springboard. In pursuing business, for instance, you can opt for online certificate programs or even dive headfirst and charge everything to experience.

They say that experience is the best teacher in life. Come to think of it, this saying hits an extra sweet spot in the tumultuous yet rewarding world of business. Entrepreneurship is not for the faint of heart. Despite the number and the quality of degrees, certificates, and internships, no one can really prepare you for what lies ahead. As a matter of fact, most of the learning occurs on the job. Indeed, running a business is half the battle, but arguably the biggest and hardest test of all is starting one.

With that in mind, here are some factors that might help you make your budding entrepreneurship experience a little smoother.

Naming the Company

There aren’t many things in this world that are as important as names. It’s probably the best connection between your individuality and your company’s identity. Needless to say, a vital part of conceptualizing a name involves determining and following a certain business structure. Two of the most common variations are sole proprietorships and limited liability companies (LLC). While sole proprietors can easily choose the former and call it a day, naming an LLC or a corporation is a different story altogether. Naming conventions for these types of business structures vary from state to state but generally require that you include some form of “LLC” or “Corporation” in your name, respectively. Considering there are cases that simply switch up a punctuation mark or changing it from singular to plural—or vice versa, it’s of the utmost importance to think of one that’s very unique to your area.

Establishing a Business Address

This is possibly one of the most overlooked facets of starting a business, especially for small and medium-sized enterprises (SME). Having a clear-cut business address makes you more professional, further legitimizing your venture in the process. Additionally, it implies the notion that you are established and dependable. You want your customers to feel that if and when the time comes that they need to communicate a personal matter—whether a suggestion, a recommendation, or even a complaint—that you’ll deal with it professionally and in a timely manner. By the way, the idea of a business address isn’t just limited to a physical space, as nowadays, more and more SMEs are setting up virtual offices and are relying on social media accounts and company websites to convey their message.

Planning for the Future

photo by Anne Blumer

One silver lining during the current global pandemic is that it has emphasized the magnitude of future-proofing a business. An up-and-coming entrepreneur should consider looking one, two, even three steps ahead of the rest and come up with a profitable model that can withstand just about every challenge imaginably. It’s important to remember that money shouldn’t always be the be-all and end-all of your venture. A sound business model should generate consistent cash flow, provide capital for growth, help hire the best talent, and be cost-effective to help weather any storms such as a pandemic, for instance.

These are just some of the simplest yet most disregarded things to think about when starting a business. We hope this article shines a light on some key issues that many forget about when they bravely enter entrepreneurship. But if you need further reading on continuing education and ways on how to grow your venture, be sure to check out our blog posts on a regular basis.

Article made for instituteprofessionalorganizers.com

By Thea Wiggins