Starting a small business begins with a lot of thinking and research and then some more thinking. So many factors of a business of any size require more than just action. Every aspect must be carefully considered and planned out in order to be successful. All multimillion-dollar companies started with a detailed business plan. Every small business has the potential to reach such lofty heights. Every successful business starts with a great plan but there are inevitably a few things that slip by overlooked. Here are three of the things people most often do not consider when starting a small business.
Legalities
This may seem unbelievable, but there is often some small local rule or ordinance a small business owner may be unaware of that can cause an issue down the road. Major laws and regulations are easy to comply with but lesser known rules, such as those for rural areas, aren’t always readily available. All aspects of a small business must adhere to any applicable state and federal, and local laws. A slip-up can cost a lot in government penalties. It doesn’t stop at registering your small business with the state. Small business tax liability laws and even employee laws will come into play.
Balance Your Passion
So many new small business owners forget that passion isn’t all you need. Even if you know everything there is to know about your field, there is still the business side of things that many people don’t consider. Legalities, accounting, and advertising are all things that are often ignored until it is too late. Having a strong passion for your business is of vital importance. A great love for the business gives the owner a cutting edge above the others. It helps to keep motivation high as well. It is just as important to be knowledgeable in all the other facets of the business. An equal balance of passion and knowledge is desirable.
Know Your Space
Small business owners often underestimate the amount of space they need and end up with a large mass of equipment and nowhere to put it. This can have unforeseen consequences with lasting results. Using a storage warehouse is always a good idea for any size business. In the early years, it can provide a convenient place to put all business tools and equipment as the bugs are worked out of the business. It can also serve as a place to keep promotional items, holiday décor, and excess supplies. Misjudgment of space can occur in the opposite direction as well. Getting a much larger building than you need can be expensive. Utility costs are higher, and it can cost more to stay open than is made in profits each day. Choosing the correct location depends on many factors including expected patronage, furnishing requirements, and size of staff. Shop around for the right place before making any decisions. It may even be beneficial to work out of your home or build your business building.
There are a lot of things to consider when opening a small business and it takes a long time to learn them all. It isn’t a task to take on quickly if you don’t know what you’re doing. If finances allow, hiring an accountant and/or a business manager is a good idea. Any time a portion of the workload can be hired out, it leaves more time to focus on other things. Adequate capital is another aspect people often overlook. Starting a business costs money. Some more than others, but its almost always more than you bargained for.
