Like most people, you may have thought about starting your own business. The idea of setting your own hours and taking time off while still earning income can be extremely appealing. However, with all the roadblocks that may arise along the way, it often takes more time and money to grow a successful company than people think. Here are some actions you should take before starting a business.
Have Enough Savings Put Away
Ensure you have enough money in your savings to cover business expenses as you build awareness of your company. Your business may not take off right away, and you may encounter expenses you didn’t plan for. Also, becoming established often takes much longer than anticipated.
Determine Whether to Borrow From Family or Friends
Choose someone with business skills who understands the potential risks and benefits of lending money. Have a written business plan showing your idea is viable, that you’ve completed your due diligence and you’ve worked out potential profitability. Show exactly what you need money for and why. Ask for only what you need to reach a specific point in your business plan rather than the maximum amount. Once you reach that point and have paid back the loan, you’ll be in a better position to ask for additional funding.
Pitch to Outside Investors
If you choose to involve outside investors, wait until your business reaches a point where you can show growth and further potential. Keep in mind you may be giving away an ownership interest in your company. If you decide you’re OK with that, carefully evaluate what types of financing you need and how much money your track record may give you access to. Determine whether you want to approach a bank, angel investor or crowdfunding. Create a long-term plan for using equity investment and debt to finance your business.
Have Backup Plans
Complete a financial risk assessment showing where your company is most vulnerable and what risks you may face, then use the plan to direct your backup plan. Having alternative strategies ensures your business continues operating despite setbacks.
Minimize Extra Costs
Let USA Staffing Services help you minimize extra costs associated with starting and building your company. We handle all of your back-office needs, including employer of record services and payroll funding and administration, while you continue bringing in revenue. Our scalable services ensure you pay for only the services you need when you need them.
Work With a Leader in Back Office Solutions
For help with starting and growing your company, contact USA Staffing Services and work with a leading back office outsourcing company!