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.
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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?