Tips on Starting Your First Business When You Don’t Know Where to Begin

Starting a business is a time-consuming and often nerve-racking new endeavor. However, no one ever built an empire by working for someone else. If you are looking to start your own business but aren’t sure where to begin, today’s post is for you. We will take a look at everything from how to determine your skills and resources to the types of business structure you might consider when you’re first starting out.

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Evaluate Yourself

First things first, you have to take a look at your experience, skills, resources, and time availability. Before you decide on a business, ask yourself the following questions:

What am I good at?

When you’re looking to replace an income, one of the first things you should evaluate is your skills. Many people start their first businesses after working in an industry or finding that they enjoy a marketable hobby.

What do I like?

While it’s not a bad idea to start with something that you are already skilled at, there’s also nothing wrong with starting a business based on your passion. Even if you don’t know all of the ins and outs of your preferred profession, you can always start small and grow your knowledge base.

Do I have the money to start by myself, or should I seek investors?

You have no doubt heard the wisdom that it takes money to make money. This is especially relevant when you’re trying to start a new business. You will have startup costs, which include equipment, marketing, and, potentially, hiring employees. Plus, you may also need to pay for rent and get your licenses. According to Eposnow, a brick-and-mortar retail store can cost anywhere from $5000-$100,000 to get started, while a home-based business may be up and running with as little as a $100 investment.

How much time will it take me to get started?

Some people get lucky and can start a business, get their first customer, and get paid within a month. Not many people have this experience. For most of us, it will take lots of preparation, hard work, and trial and error before we start seeing money in our cash registers. A good rule of thumb is to have about six months’ worth of living expenses in savings before you try and start a business to give yourself a financial cushion.

Choosing A Business Structure

There are many different types of business structures, including sole proprietorship, LLC, and corporation. As an entrepreneur, you’ll be a sole proprietor by default. This means you take on all of the risks associated with running a business. An LLC is a step up that offers some financial protections but might not be the best option if you plan to grow.

An S Corp. is a good option for small business owners. As an S Corp., you’ll enjoy savings when it comes to self-employment taxes, and you can claim losses on your personal IRS return. Choose a C Corp. if you think you might want to sell stocks, offer shares to foreign investors, and grow with few, if any, restrictions. To choose between a C Corp vs. S Corp, do your research. You can start by looking at state-specific rules and regulations surrounding each. A perk here, regardless of the type of entity you choose, is that you can file on your own using a formation service if you don’t have the budget for an attorney.

Assessing Market Demand

For every product and service you provide, there is a market for it. It takes research to know who will buy from you and how much they’re willing to spend. Before you invest your time and money into starting a new business, put some effort into assessing the market. A good place to start is by looking at the competition. If you plan to open a restaurant, for example, see how many others that serve the same type of food you plan to serve in your local area. If the market is oversaturated, it may be difficult to compete with existing establishments. However, if each business tends to be busy, then that can indicate lots of demand.

Look at your potential competitor’s social media accounts, too. This can give you a great idea of how active similar businesses are. You can also dive into search engine data, plan surveys, and do a few test runs, the latter of which are also beneficial in helping you refine your offerings. MasterClass offers more insight into how to determine market demand.

Types Of Businesses You Can Start With Little Experience

If you don’t already know what you want to do, but you know you want to be an entrepreneur, there are a few things you can do that can help you overcome the obstacle of simply getting started. Businesses that you can build from the ground up with little to no experience include:

  • E-book writing. Writing an e-book is a great way to get your name out into the industry while monetizing your expertise. Launch a blog, and offer your e-book as part of a paid subscription.
  • Pet sitting. If you love animals and don’t mind cleaning up messes, working as a pet sitter or dog walker might be a great option. You probably won’t need a license, but it can help to undergo some animal safety and behavioral training to help keep yourself and the pets in your care safe.

While these two ideas are vastly different, they clearly illustrate that you have options. Remember, you are not limited by anything other than your drive and determination.

Starting a business is a big deal, and it’s an experience that we think everyone should have at least once. When you don’t know where to begin, start by performing a self-evaluation. Next, spend some time deciding on the structure of your new business, which will serve as its foundation. While there are still many steps that you’ll have to take toward success, the tips above can get you started. Finally, and most importantly, congratulations! Good luck in your future endeavors.