Having a
startup idea and actually launching a business around it are two completely
different things. There are a lot of challenges involved, like building a team,
finding investors, creating an online presence, and much more. But still many
people still launch startups daily. Why? Passion, money, freedom, and the lost
goes on.
“Building a
business can be very rewarding,” The 1-Hour Workweek, a platform for marketers to earn an
income by sharing products via online channels explained. “Business owners can
catalyze success quickly and get the financial and time freedom they need and
deserve.”
Before you
begin your startup journey, there are essential questions to ask. The following
are a few of them. Let’s take a deeper look.
What kind of cash flow do I need to get
started?
Do you know
that one of the most common reasons startups fail is lack of money? It is second to
not having an actual market for your startup product and/or service. The truth
is, you will need more cash flow than your think. There is always a financial
risk to starting a new business, but having a clear understanding of how much
you need to launch, and how much you need to sustain for the first three years
is essential.
You can begin
to answer the cash flow question by first looking at your current finances. How
much do you have in savings? How much credit do you have? Can you get a line of
credit for unforeseen issues down the road? If money doesn’t add up, maybe
waiting to launch your startup is best.
What is my startup marketing strategy?
This is a very
important question to ask before launch, because marketing will drive the
growth and success of your startup, especially if you are in a competitive
industry. Marketing can also eat up a lot of your cash flow, so this question
is tied to the one above. Start with mapping your buyer personas, develop a
brand book, get a media kit together, and identify social channels, media
outlets, and influencers that can be assets in your marketing strategy.
For instance,
buyer personas can give you insight into your target audience. You can identify
what your audience wants, how and where they like to get marketing messages,
where they hang out online, and more. If you don’t have a solid marketing
strategy, it is definitely time to make one.
When do I ditch my full-time job?
This is an
essential startup question to ask, and something that shouldn’t be taken
lightly. A day job can help fuel your startup in the beginning, because money
is important to growing a business the first year. But if you have a pretty
sizable savings, you may trade it in for time.
Startups eat up a lot of time, and if you are working a full-time job with your startup on the side, you may find it hard to keep focus and energy levels up. It is kind of like having a side hustle, but one that you are passionate about growing because if the money you have invested in it. Starting a part time business with a full time job is possible, though a bit difficult, but if you can quit your day job and still live comfortably for a year or two, maybe it is a good way to free up dedicated time to build your startup.
“Want to be free to chart your own course, to make your own decisions, to make your own mistakes — to let the sky be the limit not just financially but also, and more important, personally? Starting your own business is the best way,” Jeff Hayden of Inc. explained.
What do I need to do for taxes and business
licenses?
If you are
going to take money for services, or net sales profits from products, you need
to keep everything on the up and up with the government. They will definitely
want their cut at the end of each year. The good news is that you can rely on
platforms to make taxes and everything else pretty easy, like FreshBooks for example.
Accepting payments from
customers is also
essential. For this you can set up a business bank account with your bank, or
use online pay systems like PayPal to accept payments, as well as pay
employees. This is all a must, and it is simpler to get going than most
imagine.
In Conclusion . . .
There are a
number of questions you need to ask before diving head first into a startup.
You may have the best idea ever, but the execution of that idea is what may
separate success from failure. You certainly may not be 100 percent prepared
for everything, but you can mitigate your risk by having as many ducks in a row
as possible. Are you ready to launch?
