Be clear on why you want to start a business
Have you identified a niche market? Do you have what it takes to start a business? Are you doing it out of frustration? You also need to be ready to face the challenges that come with starting a small business.
Choose a business type
Keep in mind that competitors can co-exist quite successfully, so even if your idea isn’t necessarily unique, you need to differentiate yourself. You need to execute your version very well to stand out. Be clear and strategic about how you’ll penetrate the market and what type of business model will suit you best.
Create a business plan
The best way is to create a one-page business plan that covers what you offer, who you’re targeting, how much you’ll charge and what you’ll do to make it happen.
Sort out the admin
Don’t be discouraged by administrative and legal tasks. Don’t waste time by agonising over a company name. Have a clear and swift plan for handling your branding and corporate identity. Make sure that you register your name and get all necessary licence documentation.
Make sure you open a bank account
Never mix personal funds with business funds. Using a business account for all business transactions eliminates this possibility. By opening a bank account you have a clear paper trail of all transactions and you may be able to benefit from specialised business banking solutions. This is one of the most important steps for starting a small business.
Maintain healthy cash flow
Cash flow is the movement of funds in and out of your business. This cash flow should be tracked weekly, monthly or quarterly.
Positive cash flow is achieved when accounts receivable amounts exceed accounts payable amounts.
Negative cash flow is when the outflow of cash is greater than your incoming cash.