If you are just starting on your business journey there will be some important decisions that you will need to make ahead of time. Making these choices as early as possible will allow you to more effectively begin with planning and setting up your business. To help guide you in this process we have curated a list of the top decisions that you need to make before your start a business. These decisions are key in the early stages of your business and they will help save you both time and money in the long run.
Additional info on starting a business about all things you will need to consider when you are first starting out can be found here.
1. Will your business be online or have a physical presence?
Perhaps the most crucial decision that you will need to make early on will relate to whether your business will be entirely online or if it will have a physical presence. In most industries, there are businesses that work purely online and businesses that work more traditionally. The two can be equally profitable. However, when first starting out a traditional business will often require more funds to begin. Therefore, if you are not certain about where you are getting your funds from yet or about how much money you will have for the initial investment you may want to go for the more reasonable and cost-effective option.
2. Time dedication
If you are building a business, you will quickly realize that there is a lot of time that you will need to dedicate to building your business. With that, come a few different decisions and questions that you must answer for yourself. The most important of these are:
Will you be working on your business part-time or full-time?
Will you have a job while trying to build your business?
If you are quitting your job, what is the timeframe within your business that will need to be sustainable for you to not need to go back to a normal job?
While it may be hard to assume what the actual answer to any of these questions will be at first, the earlier you make this decision. The easier it will be for you to have a work-life balance.
3. Are you starting from scratch?
Depending on the type of business that you will be starting there are a few different options available. Starting from scratch gives you the option of deciding everything for your business without any influence from outside. However, it can also mean that you will need to find clients and people to work with, who will have no idea about who you are. This can be a challenge for any new business. It is also the reason you might decide that taking up a franchise or buying an already existing business is a better option, as both of those options could lead to you establishing yourself and your business faster.
4. What is the legal framework and business structure that works best for your business?
Perhaps one of the most important questions that you will need to ask yourself relates to your business structure. However, chances are you will not be able to adequately make an informed decision on this without the assistance of a tax accountant or lawyer. They will help you understand the differences between operating as a sole trader, a partnership, or a limited company, and possibly assist you with the decision of which one is best for your business.