During the first three months of 2022, over 1.26 million business applications were filed. Whether you’re starting your own business to be your own boss, make more money, or achieve a better work-life balance, there are a lot of to-do tasks to tackle.
Whatever your reason may be, consider these seven questions before taking the plunge and starting your own company.
1. What Is Your Motivation?
The reason behind why you want to start your own company can be the driving force that keeps your business going. Without a strong motivation, it can be difficult to maintain the dedication and commitment required to make your business a success.
From the very beginning, know your motivation and create clear goals and objectives. Your goals can also help move you forward, and you will be able to track your company’s progress easier.
2. How Will You Engage Your Target Market?
The next thing you need to think about is how you will reach and engage your target market. When it comes to marketing, social media is a powerful tool. In the US, 82% of the population uses social media, so figuring out how it works is important to reach your audience.
Some other options include online marketing, content marketing, or even more traditional methods like print or radio advertising. Figure out the method that will work best for you and create a plan to engage your target market.
3. What Is Your Competitive Advantage?
Many businesses that are successful have a niche that they were able to optimize. Consider what makes your company stand out. It could be a product, service, or process that you offer that is unique to your company.
Also, consider how you will remain competitive. If you’re not sure what your competitive advantage is, take some time to research your industry and see what others are doing. You should be very familiar with who your competitors are, their services, and how they run.
After all, knowing your competitive advantage will help you to better market and sell your products or services.
4. How Will Your Business Earn Revenue?
There are a variety of ways businesses can earn revenue, so you’ll need to decide what model is best for your company.
Some companies opt for a subscription-based model where customers pay a monthly or annual fee. Others choose to charge per product or service. There are also a number of businesses that use a mix of both models.
Think about what will work best for your company’s products and services and decide how you will price them. Make sure you review the cost of goods sold and the overhead costs associated with running your business. And, protect your business’s assets from misfortune by investing in good startup business insurance.
Take the time to have a solid plan for generating revenue, as this is the lifeblood of any business.
5. How Will You Get Startup Business Insurance?
Starting a business is a risky endeavor, and it’s important to protect your company with the right insurance. Make sure you have the right startup business insurance for your company before you get started.
Without the proper insurance, your startup business is at risk of losing everything in the event of a disaster. That’s why it’s crucial to have startup business insurance in place. This insurance will help to protect your business in the event of a fire, theft, or other disaster.
There are a number of different types of insurance available, so make sure you understand the coverage you need. Some types include the following:
- Property insurance
- Business auto insurance
- Workers compensation insurance
- Commercial general liability insurance
Spend time researching which insurance your startup business will need.
6. How Will You Grow Your Business?
Many people begin their startup business by thinking they need to do everything themselves. However, doing everything yourself leads to overworking, burnout, and exhaustion. It’s not sustainable for the long run and slows down your company’s potential for growth.
That’s why it’s so important to optimize by outsourcing. Outsourcing can help your company expand faster through delegating tasks to people who can do them faster and better and by allowing you more time to focus on important tasks.
Outsourcing is used by many companies, and 57% of companies reported using outsourcing services because it helps focus on their business.
While outsourcing is great for some companies, be mindful of your initial startup budget and strategically use outsourcing where you can.
7. How Will You Develop a Business Plan?
After you’ve considered all of the above factors, it’s time to start developing your business plan. This document will serve as a roadmap for your company and will help you to secure funding, partnerships, and customers.
Your business plan should include the following:
- An executive summary
- A company description
- A market analysis
- Your company’s organization and management
- Your company’s services
- A contingency plan
Be sure to include as much detail as possible in your business plan. The more information you can provide, the better.
By taking the time to think about each of these factors, you’ll be well on your way to starting a successful business.
Get Insurance for your Startup Business with Bethany Insurance
Bethany Insurance offers comprehensive insurance for startup businesses. We understand the unique needs of new businesses, and we can help you get the coverage you need to protect your startup company. Contact us today for more information!
