Things To Consider Before Starting A New Business

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Starting a new business of your own in Dayton, Ohio, can be an exciting and interesting prospect, especially if you truly believe in yourself and your idea. Whether you intend to start a small local brick and mortar business or if you are thinking of launching an international eCommerce clothing shop, there are a few things to consider before starting any business on your own.

Purpose of Your Business

Before you begin ordering inventory or developing an idea you have for a business, it is important to consider its purpose. What purpose will your business serve? Is there currently a demand for the type of business you want to open? Defining the purpose of your business is the first step to creating an accurate and relevant business plan that is accepted and taken seriously by potential investors and financial lending institutions.

Target Audience and Demographics

Any time you are starting a new business, you must first determine who you want to reach with the products, services, or ideas you want to share. Ask yourself the following questions once you begin brainstorming business ideas and developing your business plan:

  • What age range am I looking to target with my business? What age range is most likely to take an interest in my business and brand, and why?
  • Am I targeting just men, just women, or a combination of both men and women with my business idea?
  • Is there a specific location I intend to reach with my business, or am I interested in quickly scaling and expanding regionally, nationally, and even internationally?
  • How do I intend to reach the audience and demographics I have in mind? Is my audience more likely to visit a local store in person, or do they prefer to shop online with minimal communication with others?
  • How will I market to those who enjoy my products, services, or ideas? Is it better to conduct offline traditional marketing strategies, or to implement digital and social media marketing strategies?

Type of Business You Intend to Form

The formation of your business plays a major role in how you must manage it and its operations as you begin scaling and growing. Choosing the right business formation is essential to ensure that you are legally and financially protected at all times, regardless of the type of business you are interested in and the industry you are entering. The most common types of business formations include:

  • C-Corporation
  • S-Corporation
  • LLC
  • DBA
  • Sole Proprietorship

Choosing the right formation for your business will greatly depend on the type of business you intend to conduct, whether you currently have investors, and what type of liability protection you are interested in. Before filing the appropriate paperwork necessary to successfully and officially create your new business, it is highly advisable to consult with a business lawyer or professional for the guidance and advice you need.

The Current State of Your Finances

Managing your finances properly goes a long way, whether you are looking to invest in a new business or purchase a home. Before you can launch a new business, you will need to review your current capital and funding options. Raising money is often an integral element in building and launching a successful business.

If you are currently struggling with your credit score or if you are in debt and want to get out before moving forward with a business venture, a bankruptcy attorney in Dayton can explain your options. Consulting with a bankruptcy attorney is a great way to gain valuable insight into the overall health of your finances while discovering which options are most beneficial for you personally and your business plans.

A bankruptcy attorney is not only able to help guide you through the process of filing bankruptcy, but they can also assist you with rebuilding your finances after the filing is complete. Whether you have filed for bankruptcy in the past or if you are curious about how a bankruptcy filing will impact your future business, working with a bankruptcy attorney is highly advisable.

Licensing, Leasing, Renovations

Always research licensing, leasing, and renovation fees that will be necessary to get your business off of the ground once you launch it. Not all businesses are straightforward or require a set amount of funding to get going, which is why it is important to set aside additional funds for unexpected overages and expenses.

Manufacturers and Suppliers

Whether you are selling handcrafted items, printed T-shirts, or custom items you have created from patented molds, you are responsible for finding, forming, and maintaining relationships with manufacturers and suppliers that provide you with high-quality items and results.

Employees and Payroll

Once you make the decision you expand your business, you will need to consider whether or not it is optimal for you to hire full-time in-house employees, or if it is best to opt for outsourcing solutions.

Sales and Marketing

Consider the sales and marketing department of your business and how you plan to spread the word of your venture. Will you take complete control of sales and marketing, or will you require additional outsourced help? How important is local and offline marketing compared to social media and digital marketing strategies for your business?

Accounting and Financial Management

Accounting and financial management are key elements of any functional and successful business. Without proper accounting, it becomes increasingly difficult to project profits and revenue, which can result in losses or the complete dissolution of a business. Whenever you are planning to start a new business, it is important to consider who will manage the accounting and the overall financial management of your venture.

While creating, building, and growing a business of your own is often an exciting venture, it does require due diligence and a commitment to ensuring you take all of the right steps throughout the process. By taking the necessary steps and working with bankruptcy or financial lawyer, move forward with starting your new business without putting yourself in financial jeopardy or at legal risk.