When you’re
considering setting up a business, you will need to get your priorities
straight. It will take an enormous amount of time, energy and focus to start a
company and make it successful. In fact, it’ll end up being far more time than
you expect. Your personal life will suffer for a while and if you have a significant
other, they’ll need to be understanding about the reality because your work/life
balance won’t exist again for a while.
In this article, we
cover some other things that are important to think about when starting a new
business.
Get the Name Right
Planning to register a
company or corporation is easier to do when you know what you want.
Undoubtedly, you’ll need
to run an LLC name search to check whether your chosen business name is
available in the state you wish it to be registered.
Also, bear in mind
that there are certain requirements with naming conventions too. For instance, a
company name cannot be easily confused with one that already operates within
the same state. It must have ‘Limited Liability Company’ or a suitable
abbreviation in the name too.
It’s also important
that any name selected through an LLC name search doesn’t suggest a link or implied connection
to an agency, entity of the state or other body. Also, avoid a name that gives
the impression that you’ll offer services or operate in a way that you’re not
licensed or allowed to do so in that state.
Also, note that a name
search feature won’t necessarily automatically exclude the above – that’s
something to seek advice about. Furthermore, each state has unique rules for
LLCs that you should become aware of too.
Market Size
What is the current market
size for the products or services that you plan to offer through an LLC? If you
don’t know the answer to this question, then you’re probably not quite ready
yet!
It’s better not to go
off half-cocked into any business venture. Perform enough research to sensibly gauge the size of the market
first. Put together a business plan that lays out what you intend to do with
the business, how large the market is, and how you plan to proceed. This type
of plan doesn’t need to be extensive, but it’s a useful guide in itself. It
also highlights gaps in your knowledge where more information is needed.
Growth Potential
Think about the growth
potential with the market that you’ve selected. Is it large enough to sustain
the business if you grab a small percentage of the market share that’s
available now?
Is it expected to grow
in size over time, or is it a passing fad? While you can make your millions on
a passing fad, most business people prefer to aim for building a sustainable
business while avoiding short-term crazes.
Also, consider the
marketing side. How will you find your first customers? Will you use local
advertising, online advertising or another method? It’s important to know how
you’ll secure your customers and what the cost of customer acquisition will be.
While we all like to
think about creating a huge business that eventually lists on the stock market,
allowing us to cash out part of our stake, the reality is that it’s necessary
to start at the beginning. However, when doing a few things right, there’s no
reason that a new business cannot see rapid growth in its early years.
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