The world of business has always been filled with whirlwinds of perceived and actual outcomes. Some fail, some succeed, and some do just enough to stay in this competitive world. Another factor that came in the demise of business owners is the onslaught of the coronavirus pandemic. This specific factor forced business establishments to close indefinitely. Some of them even decided not to resume operations even after all goes back to normal. Their decision came as a result of the lack of adequate funding to keep going due to the sudden halt in the flow of customers.
No current owners of businesses are strangers to feeling that way. They all started by looking at the business picture and seeing all potential competition, difficulties, and mistakes that they will encounter along the way. You can also hear or read about myths about starting a business that you should not allow to take the inspiration away. Shelling out hard-earned cash on something seemingly uncertain could be scary. After all, all businesses—old and new—come with several monetary risks.
An example?
FedEx founder Fred Smith encountered two major setbacks during the early days of his now multibillion-dollar company. Smith started FedEx as a visionary term project at Yale University. His professor, however, quickly shut the lights on him by telling him that the project’s concept was well-built with solid foundations. The problem, according to his professor, was that no matter how refined the idea, feasibility was nowhere to be seen.
The FedEx founder did not let his professor get inside his head. He acted upon the project. He sourced funding, plans, and manpower to begin operations. Another setback? The company faced astronomical fuel charges and other types of debt two years after it got its start. What he did was he took FedEx to Las Vegas in pursuit of an investor. He succeeded and secured just enough to get him by a single week. After that week, he found another investor who took a financial risk to become the company’s foundation.
A key takeaway from FedEx’s roots is that determination goes a long way when it comes to running businesses. Facing a lot of hurdles, especially monetary ones in a world full of competition, would be a reason for some people to give up. Yet there are people who persevered and came out successful.
Who do you go to when you have the idea?
After doing thorough business planning and research, you finally have the light bulb turned on. You have an idea awaiting finishing touches before it is ready for execution. But you will need to consult a few more people other than yourself to validate your ideas and ask for advice. Who are they?
It is a good idea to first consult your family about your desire to start your own business. A sit-down conversation on how kick-starting your own one can be a good opportunity to discuss how the move will affect your relationship with them, your overall finances, and your time management. Another outcome of the conversation could be your relatives chipping in and helping you turn your vision into reality.
Venturing into a business—big or small—does not come without legalities. To be able to run a business without having brush-ups with the law, consulting a business attorney is integral. Lawyers with expertise in business fields can give you advice and help you with the paperwork required to make your business legitimate. They will also ensure that your planned structure will ultimately meet your goals and that you will be able to sustain it.
Consulting an accountant or a financial advisor is also a good idea. They can aid in making sense of your business’ financial statements and cash flow, and they will plan how your venture will handle opportunities and challenges. As your business grows, the consultancy provided by an accountant will be useful in finding out if it is time for your business to pour earnings into better equipment. As decisions made in business concern finances, for the most part, having a financial expert on your side would make decision-making more valuable.
Thinking of executing your business blueprint through a bank loan? Talking to a banker to give you guidance on how to apply for a loan is useful. Banks take caution in lending money to borrowers. Having someone with knowledge and experience can help ease your loan application. Additionally, your business will need a checking account to contain its monetary assets—banks and credit unions will provide you with these. It is advisable to establish a business relationship with a bank to increase the chances of approval for your planned loans.
Now that we have you inspired and informed, it is about time to make your dream of becoming an entrepreneur a reality. Make sure that you do not forget that a good business mindset and correct information goes a long way.