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5 things you need to know when starting a small business

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Starting a small business can be both a rewarding and daunting task. There are multiple hurdles to overcome and endless steps to complete in order to ensure the success of your company. Nonetheless, there are five key points that anyone who is starting a small business absolutely needs to know.

1. Understand Your Why

Why do you want to build your business? Why is it important to you? Why is it important to your target audience? This is arguably one of the most important things to think through when starting your small business. These are the factors that will keep your drive and focus throughout the formation process. Understanding your why might be the difference between whether your company succeeds or fails.

2. Determine How to Finance Your Business

It is no secret that start-ups cost money, and sometimes they cost much more than you initially anticipated. It is important to have a plan and back-up plans in place as you form and grow your company, which will lessen the chances of losing your financial backing when inevitable unexpected obligations arise. To do this, consider where you are pulling your funds from and create a budget around this. Consulting a financial advisor is often beneficial, as they can help you determine how to save, spend and anticipate certain expenses that you might not have otherwise been prepared for.

3. Understand the Logistics

The last thing you want to happen while starting a business is to miss a step in the logistics process. Some important steps to think through include: creating your business plan, determining which type of legal entity best fits your business model, registering your business name and obtaining all applicable licenses, identifying your target audience, and building and legally protecting your brand. Skipping or missing any of these steps could very well set you back days, weeks or even months from properly branding your company and more importantly your launch date!

4. Identify your Strengths and Weaknesses

Being able to identify your strengths and weaknesses can contribute to the success or failure of your company. Self-awareness is key because you’ll need to be honest with yourself regarding what talents you have an abundance of and in what areas you will likely require support. Knowing what areas will require extra effort and finances will make a huge difference in how smooth the start-up process will go. Failure to acknowledge your weaknesses could result in spending time and money that you don’t have to clean up a mess that could have been avoided.

5. Get Some Assistance

It is highly advisable to hire an attorney to help you sift through challenging documents and assist with the logistics of creating your business. A big mistake many entrepreneurs make is trying to go in alone with no professional guidance. Avoid missing key information by hiring the right people to keep you on track.

Please keep these 5 things in mind if you are starting a business of your own. If you have any other questions, we would be happy to assist! Send your inquiries to info@kmrlawgroup.com.

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