Starting a business is an exhilarating and daunting proposition. Apprehensions about failing, losing money, or being outcompeted must be dealt with and overcome. Entrepreneurs must also spend a considerable amount of time prior to launch deciding on a number of business features and expenditures, as well as figuring out how and where to secure that necessary startup capital if they stand a chance of getting a new business off the ground in such a competitive environment. With that in mind, below are X decisions to make before starting your business. 

Legal Structure

The first and most important decision to make before starting your business is the legal structure it is going to have. If you are unaware of how to create an llc, then consider checking out startmyllc website. Will you start a sole proprietorship? A partnership? An LLC or LLP? Or will you incorporate? Your legal structure affects your tax liabilities, how you lend money to and take money out of the company, the legal distance between you as the owner or primary shareholder of the company and its activities and how easy it will be to raise capital, transfer ownership and bring new partners on. Settling on a legal structure before going into business is crucial, although you can always alter that structure down the line if need be. Do your research on all the different options and how they might impact your future plans — and perhaps begin your research with the most commonly used business structure, the LLC.

Web Design or DIY 

Even if you are starting a brick and mortar business, the chances are that your business’ website will form the foundation of your digital presence. Having a well-made website is essential for digital marketing, for selling goods and services online, for creating trust in your business and for providing an easy-to-navigate online storefront that your customers can use to learn about and purchase your products. 

When establishing your website, you can either outsource the web design to professional web designers or you can take on the challenge yourself. Professionally designed custom websites are potentially one of your biggest startup costs and can run into the tens of thousands of dollars, depending on what you need done.

If you don’t have any web design or coding experience, you will have to learn as you go using popular page builders on web hosts like WordPress, Squarespace and Wix. If you have the patience and time, however, there are nearly endless tutorials out there that can walk you through virtually anything you could want to do with a personal or business website. 

Startup Capital

Many business owners make the mistake of jumping into a business without fully understanding their capital needs. How much money are you going to need, realistically, to get your business venture off the ground? How much of your own money are you going to need or be able to put in?’ How much will you have to or be able to raise from friends, family and outside investors? What kind of access to credit will you have? All of these are questions you need to know in advance. 

Business Plan

Among the various reasons new businesses don’t work out, failing to create a detailed and well-thought-out business plan is a recurring one. A business plan should outline your current and future management needs, the business’s core operations, it should perform a competitor analysis, a SWOT analysis that includes a breakdown of strength, weaknesses, opportunities and threats, and it should clearly define who the business’ target market is. 

A business plan is also an important part of raising capital and garnering the interest of investors and creditors. Many lenders won’t even consider giving a new business money if it is not backed up by a solid business plan. 

Determine Your Mission

Having a mission might not seem important during the planning stages of your business, but it is one of the most important elements in successful scaling and growth. Having a mission provides direction and is a necessary part of inducting, onboarding and training new employees. A mission helps define and build a brand, is useful when strategizing new company directions, creating content and appealing to consumers and target markets. 

Having a well-defined mission ensures that all employees are working towards a single purpose and appeals to increasingly socially and politically conscious consumers who make ethical decisions with their wallets and through their brand loyalty. Keep in mind that a business’ mission may change throughout its history whether due to market or internal pressures, but starting out with one provides necessary direction. 

Conclusion 

Starting a business is not something to rush into. It requires forethought, patience, planning and, of course, self-confidence. Most entrepreneurs and their new businesses fail because not enough planning went into their execution. This includes planning out and deciding on a legal structure, how and where to access startup capital, building a proper business plan, defining a mission and a number of other important pre-startup decisions. Keep the above considerations, pitfalls and recommendations in mind and make sure your fledgling business has every chance to succeed.