If you are not currently directly employed by a company but are working for that business as an independent contractor you will have entered into a contractor pay arrangement.
You will have already started a business in your own right by working in that way. However, if you decide to start a business working solely for yourself there are things you need to know.
Tip #1 Do thorough market research on your intended product or service
It is easy these days to conduct research via the internet. Try to establish what level of demand there is likely to be for the products or services that you intend to offer.
Also, ask around to find out what other people think about your product or service. Getting honest feedback could save you money and time and allow you to make any changes if need be.
If possible involve other business owners by asking them crucial questions about your business idea. They should include: What do you think about this business idea?
Would you buy my products or services and why? What would you do differently if you were working in the same sector?
Tip #2 Create a business plan
Do not overthink your business plan as that can result in confusion and disorganization of your thoughts.
Write down notes about your product or services; who is your target group, how do you plan to market it, who is your competitor and how do you plan to price your products or services?
If this proves difficult, find a business expert consultant that will help you organize your plan and come up with workable solutions that will help you if you are going to present the plan to your bank to seek funding.
Tip #3 Cash-flow management
The obvious question here is – do you have enough cash to initially finance your business? You should know where every dollar is coming from and where it is going to be spent.
Most often start-up business owners’ waste money because they fail to track their spending wisely.
Tip #4 Create your business name and formulate a branding strategy
The name you choose to use should be short, easy to remember, meaningful and recognizable. Branding is vital for the creation of credibility with your target audience.
At this stage choose a logo that is affordable but professional in appearance, and also consider the needs of your customers when you engage in the direct marketing of your brand.
Tip #5 Get business insurance
Business owners sometimes view this as a waste of funds, until they are faced with catastrophic situations such as a fire, theft or a lawsuit. Ask yourself the questions:
What would happen if a client is injured by faulty products in your business area? Or what would happen if a fire broke out and razed your business premises to the ground? Be wise – get insurance!
Tip #6 Begin selling
Selling and confidence go hand in hand to ensure that you have sufficient knowledge of your products to describe and explain them effectively.
Selling and communication skills can be learned and improved upon so if necessary do some studying.