Are you thinking of starting a business? If so, here are some things that you might be considering already, but should definitely ask yourself.
- Do you have a budget with the costs to open the business?
How much will rent be, does it include common area maintenance** charges?
**This is also known as CAM and is on top of a triple net rental rate.**
Is it worth being in a better location with higher rent, or saving the additional cost for advertising?
How many staff members will you need to serve customers?
How much training will you have to provide staff? Or, should you hire more experienced employees who don’t need as much training?
What are the ongoing costs to sustain the business until it starts covering overhead expenses such as rent, utilities, staff, inventory, management systems – accounting and Point of Sale systems – plus, advertising and marketing.
How much inventory do you need to get started?
Should you offer a higher end product line than the competitor down the street?
All of these are directly related to in some way or another, how much you may have to invest in the business. These are all quite tangible and have a definitive cost.
In addition, there are several intangibles that should be considered as well.
- The name you pick should be unique and represent what you do, sell or provide.
Who is your target customer or client?
How will you get the word out about your business?
Are you networked with like-minded business owners with complementary services or products who can refer your business? (If not, how will you find them?)
Will you accept or not accept credit cards?Read about opportunity cost from last week’s blog.
How will you differentiate your business from everyone else who does what you, sells what you sell, or provides similar services?
Will you be open 7 days a week, and what will it cost you in lost sales if you are not open?
I know that it is a lot to consider and these are just a few things that you might not have been thinking about, yet.
When I started TransAct, I already had a retail background from growing up working in my parents’ chocolate shop all through my teenage years and through college. After graduating, I worked in the technology field, and understood a lot about the industry before launching my business.
However, even with all of that base knowledge, I needed to invest in my business the most efficient way possible. I decided to look for my first customers though my professional and personal relationships and later as a member of the closed networking group, BNI. Over the years, I have honed my skills, modified my business focus, and have added new services to serve our clients better. I still rely heavily on networking and building relationships.
If you are thinking of starting a business, please reach out to those around you who can help you, plan to visit with someone from SCORE or talk to a trusted advisor who understands what it takes to start up a new business like the one that you are starting. There are so many resources available to you and hopefully, many of them will be your trusted suppliers who really only grow when you grow, too.
All my best wishes to you in your new business! If you think I can help you in any way, please ask.
~ Mary Ann