So you know that you want to start a business. The only thing holding you back is uncertainty. You need to be sure that you follow all the steps that prepare you to launch your own corporation. By going through a checklist of essentials, you hit the ground running on your first day of operations.
The initial step is to assess the viability of your business idea. You have to honestly ask yourself who wants what you intend to sell. That helps you focus on your market. Then, you have to determine your pricing structure for what you’re selling. You want customers to find your price attractive while yielding enough profit margin for your future growth.
Your assessment has to consider alternatives offered by your competition. You don’t need in-depth market research, just a commonsense strategy for realistically attracting customers.
Select the right business name. This seems obvious but is unfortunately not given enough consideration. An ideal corporation name conveys something about your type of business. But you can’t try to accomplish too much with a business name. Keep it simple and easy to say. Most importantly, registration of the corporate name must be available for you to legally use it.
Don’t dread the sales forecast. Embrace forecasting as your compass. You don’t have to constantly steer an exact course when you have a compass to occasionally reference. Your initial sales forecast tells you how much you expect to attain in your first year of operation.
Your business requires a sales forecast to know the timing of when you have incoming cash. That tells you how much money you need to get started. Until sales generate enough cash, you have to use startup capital. In addition, your projection of sales tells you how much spending is required to achieve the forecast.
Even more dreaded than the sales forecast is the expense budget. But your business cannot succeed without having an idea of your costs. A realistic expectation of your expenses permits you to periodically assess whether your spending is on track.
There’s no need for elaborate spreadsheets when you start a business. You only need a realistic map of what you plan to achieve as you begin working for your own corporation.