4 Factors Which Can Affect Your Startup Business
Just as each business is unique, so are business owners. Everyone comes from different backgrounds, which can potentially affect their startup business. There are many factors to consider when starting a business. Some areas will be in your control, while others will not.
What Factors Can Affect Your Startup Business?
When focusing on a startup business, there are many areas which require your attention. Your ability to handle these decisions and push forward, will largely depend on your current situation. The following factors can affect your startup business, so make sure you’re planning effectively.
When starting a business, it’s not uncommon to work full-time at another place of employment. You need money in order to fund your business, while providing for you and your family. So, when do you make the decision to quit your full-time job? How do you juggle both positions?
Well, for starters, you will need to work long hours. If you are truly serious about your business, then time and effort needs to be implemented. When first starting out, spend your nights and weekends, tending to your business goals.
The key is being realistic, not optimistic. Once your business reaches a certain point, you will need to make a decision. Is there consistent revenue? In order for your business to succeed, you will need to go ‘all in’ at some point.
However, you do not want to jump the gun, leaving you unemployed and without steady income. Before you leave your current place of employment, ask yourself the following questions:
- Is my business plan fully developed? Although working full-time and starting a business is demanding, you do not want to quit your job, then run out of resources before you’re able to launch. Make sure you have everything in order before you consider leaving your day job.
- Do I have financing set-up? Whether you’re funding your business or you’re utilizing external financing, your finances need to be secure. Budgeting is highly beneficial here. You need to determine what your monthly expenses are and how much you need to put away. When deciding on an estimate, many advisors recommend doubling that value. Having enough money set aside could take months, even years. The more focused and determined you are, the quicker this process can be.
- Is my business generating income? This is not the case for every business, but majority of individuals should wait until their business is generating a steady income. This allows for a smoother transition. It also increases your chances of running a successful business.
When you do decide to leave your place of employment, make sure you do so in a professional manner.
Give enough notice and leave on good terms. Both your boss and co-workers, may be valuable contacts in the future. Even if you are working from home, developing your business; create and maintain a strong network.
This ties into employment, as your finances influence your success. Obtaining enough money is essential for your startup business. This can be frustrating, or even fatal for new businesses. You may not have a lot put away, but with effective planning and assistance, you can most certainly make your dreams come true.
No matter what your financial situation, start by determining your immediate costs (including what it will cost to run your business). It’s also important to focus on how much you have ready to invest. Subtract your investment value from your required costs; providing a better understanding of what your true financial needs are.
If you have little or no capital, this does not mean that you cannot succeed. While building your business, focus on what you know. If you are able to utilize your knowledge and skills, you do not need to venture into the unknown.
When you rely less on other sources, you can build your business in a more cost effective manner (since you do not need to source the extra assistance).
It’s also important to be smart with your money, spending it in the right places. For instance, you may need business cards. Instead of spending hundreds on cards that are trendy or made from expensive materials, focus on traditional, simplistic cards that provide the information that’s required.
Every little bit helps. When you’re frugal with your budget, you decrease your chances of a successful startup business.
Also, the Internet has provided us with a whole new world. It’s important to utilize it. Social media for instance, provides a direct route to customers that’s free, yet effective. Whenever possible, take advantage of free advertising and marketing. When you spend your money wisely, you can dramatically change your current financial situation.
3. Relationship and Family Status
When starting a business, you will need to dedicate a lot of your time and attention to your start-up. Depending on your marital status, this can be challenging.
It’s important to have the support of your loved ones, especially your partner. When you have a supportive and positive relationship, this can work in your favor. Couples who support one another’s goals, tend to be more successful.
In order for a business to be successful, it can require 40+ hours of your time a week. This can most certainly cut into family time. Although you will be dedicating a lot of your time to the business, that does not mean that your family needs to be excluded.
For instance, if you have children, you can invite them to help you, while spending time with one another. If you need to package and fill orders from home, why not put some music on and work alongside your children? The same is true with your partner. If they’re up to it, get them involved. They can help you grow your business, while you maintain a close relationship.
When trying to maintain work-life balance, make sure you plan for relationship time. Schedule in dates where you do not talk business. Just as your business is an investment, so is your marriage. You can plan ahead, scheduling vital time with one another. Don’t be afraid to take a vacation either. As long as you plan effectively, you can maintain a healthy relationship, while your business prospers.
If you find yourself in a bad relationship, this can be highly distracting for your business and personal well-being. If you are constantly feuding, this will not only affect your business, but it will put a strain on your own mental health. You need to stay focused to be a successful business owner, which can be challenging when there’s so much negative energy.
4. Lack or Abundance of Contacts
Although the old saying, ‘it’s all about who you know‘ is true, you can also actively seek out beneficial business contacts. The contacts you have, can help you push your start-up to the next level. When there are people that are willing to help your business, this can be a great advantage.
When you know people within the industry, you already have social capital. Professional networking can be extremely valuable. If you know people in the industry, build upon your relationship.
If you don’t, start contacting individuals that you respect within your area of expertise. There are individuals out there willing to help you, but you will need to put forth the effort.
No matter what your situation, you can achieve your goals. There will be obstacles, but you can overcome them. Stick to your business plan, making necessary changes along the way. You are in control of your future.
When you combine time, money, and dedication, incredible advances can be made. In order to make more time, schedule and plan; for more money, look into grants, investors, loans, or personal savings; lastly, the level of dedication is up to you. No situation is permanent, so if something is not working, make appropriate changes.