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Launching a Small Business? 4 Ways to Prepare

Startup
Article
07/29/2016

Entrepreneurship is becoming a more viable employment solution for Americans. More and more entrepreneurs are launching small businesses as technology continues to advance and become more affordable, and small businesses are finding it's now possible to leverage the same tools large corporations have. From using top-grade communications tools to connecting with foreign clients and suppliers, the current global entrepreneur landscape is incredibly rich.

However, that hardly means that launching a business is simple. As has always been the case, launching a small business is challenging, labor intensive and stressful in many ways. In fact, many new companies fail to survive even a year.

While that's enough to put some people off, the real entrepreneurs are willing to face those odds. They understand that if their first effort does not succeed, they can try again and again to make their dreams come true. While perseverance is key, there are some ways entrepreneurs can prepare themselves before launch to boost their prospects of success.

1. Test the Industry
Many people have an idea of what type of business they would like to open, but it's important to make sure it's are a good fit for the industry before jumping in head first. If entrepreneurs fail to test the waters, they could regret their decision down the road.

It is suggested that prospective business owners take a part-time job in the industry they will launch into before starting their own company. This way, they can determine if their personality is a good match for the sector, and if their skills are tailored to the work they want to do.

Also, it will be a great learning experience. Part-time entrepreneurs will be able to educate themselves about how the sector functions, as well as what types of challenges they may face.

2. Set Attainable Goals
When launching a company, small business leaders can get so excited about the future that they often set aggressive goals that can be difficult to achieve. While it's important to take steps to make the business grow, it's also essential to be realistic.

This way, benchmarks will be easier to meet, and any investors or partners on a project won't be discouraged when overzealous targets aren't met. If investors are put off, it could limit the availability of small business funding.

Be realistic. Don't set aggressive goals that are too difficult to achive.

3. Consider Location
The Internet has undoubtedly become a great channel for small business sales and marketing efforts. While it's true that a great e-commerce site or social media presence can help a company grow, it's important to think about where that business will be headquartered.

According to the Small Business Administration, there are several tax considerations that need to be taken into account before deciding on a location. Each state has different property, sales and income tax rates. In fact, some cities may have higher taxes than others, so checking into municipal small business legal policies should be a top priority.

The source suggested that by moving just across state lines, a company may be able to save a significant amount of money while still being active in the market they want to target.

4. Create a Support Structure
Friends, family, former colleagues and mentors will be some of the most essential resources when a business is first launched. They can help get the word out about a brand, they may be able to offer financial support, and they are simply great sources of moral support.

During the early stages of any new enterprise, there will be times when an owner simply needs to vent or get encouragement from their support system. For this reason, every entrepreneur should have a legion of people they can rely on when times get difficult.

 

This website contains articles posted for informational and educational value. Paychex is not responsible for information contained within any of these materials. Any opinions expressed within materials are not necessarily the opinion of, or supported by, Paychex. The information in these materials should not be considered legal or accounting advice, and it should not substitute for legal, accounting, and other professional advice where the facts and circumstances warrant.
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