Plans to Make Before Starting a Business

As with anything in life, from buying a car to having a baby, a certain amount of planning is involved. Starting a business, however, is a big decision that requires a lot of planning - financial needs, your own time, premises, legal cover and many other factors need to be taken into account. Here are a few of the things you need to take into account and how to do so.

Time

Figure out how much of your personal time you will need to put into getting your business is up and running, and how much time you’re willing to sacrifice. You’ll also need to consider how involved you will need to be once your business is up and running, and how much you can delegate to employees. If you’ve already invested a lot of capital by the time you realize it’s taking up too much of your time, it’ll be tough to back out without losing a lot.

Capital

What will you need for your business and what will it cost? Factor in both initial investments and monthly and yearly costs. One off costs may be premises and equipment, continuous costs will be amenities, maintenance, salaries etc. This is a major part of your business plan and will give you some insight into how viable your business will ultimately be. Leave a reasonable margin of error in case your costs prove to be more than your initial estimate.

Equipment

The equipment you need for your business will depend on the type of business you plan to run. If you intend to provide a service, you will need the tools to do so. If a product is your intended output, production equipment will be your primary focus. Vehicles, production equipment, computers, tools and office furniture all fall under equipment.

Don’t view equipment as a one off cost. You will no doubt need to replace equipment that breaks down - but this will be a long term problem. Day to day costs as far as equipment goes will more likely be basic maintenance. Factory equipment is essential to maintain, as are vehicles. This goes a long way in preventing on the job accidents and profit loss due to reduced output.

CMMS software is a good way to stay on top of maintenance as well as track the costs. It centralises all maintenance needs and allows you to prioritize, cost and assign maintenance jobs.

Technology

The right computers and software will make your business run a lot smoother. Invest in what you need - don’t cut corners and find yourself under equipped, but don’t splurge on things you don’t need. Simple decisions like opting for a laser-jet printer over inkjet could save you thousands long term.

Lastly, starting a business is a long term investment of both time and money, It’s not easy and it’s not for everyone. Make sure it really is for you before you jump in. If you have the time, the will and access to the capital, go for it.

Author:.

I have spent a decade contributing to and leading multiple entrepreneurial efforts. From direct sales to SaaS and everything in-between, my failures and successes have given me a unique perspective that I enjoy sharing with the EvanCarmichael community. Today I mostly work as a Business Development Consultant, assisting with projects on a global scale. My past projects have raised more than £300,000 in funding, and continue to service thousands of satisfied clients. Having risen up...

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