Ten (10) THINGS you need to KNOW before starting a SMALL BUSINESS

By: Kmar Henry
       CEO │ BIZcare Consultation & Accounting Firm

Often times we get so bombarded and confused by the necessary legal requirements that are needed to be done before we start our small businesses that our minds become cluttered, and thus we forget about the tedious planning that's needed. I meet entrepreneurs daily who start their businesses, not foreseeing all the expectations but consciously take risks by preparing to handle each hurdle as they arise. Although we can agree that entrepreneurship itself is a great risk, these ten (10) things must be done before you consider registering your Small Business:

1. Business Name: Perhaps most of us don't understand the strong influence that this can have towards our customers.  A business name will go a long way, it is a brand's image, concept and idea that sticks inside your targeted customers for decades. This is why I encourage entrepreneurs to stay away from their personal names as business names.   It's important to first think about your vision, mission, target market and brand image that you want to leave with your customers each time your products or services are used. The aim is to have repeating customers who can be recognised or feel a part of your brand.

2. Business Type: Selecting the most appropriate business type is extremely important for varnishing a smooth tone for long-term and strategic planning.  There are various advantages that can be gained with each business type that you may choose. However, the wrong type has its disadvantages and can normally result in costly outcomes. The types of businesses lie within Sole Trader, Partnership, Limited Company or cooperation. It is importation to know all advantages and disadvantages of starting within their realms based on each legislation and tax requirements.

3. Target Market: Whilst some may argue that their targeted customer base goes a far way, it is still important to pinpoint and know which customers you are targeting specifically. The ability to reach market goals and segments are directly tied to return on investment and with careful planning can be very positive.  These ranges within the field of classes, region, sex and age, and will stem to meet the wants or needs to these type of customers specifically.

4. Competitive Advantage: Think about your last big purchase for a moment.... Why did you choose that business? Some of us are averse to starting businesses with market needs and the aim of problem-solving; we instead start with what is trendy or already solved. Hence no effort is usually implemented to set our business apart from the rest. Whether you're going to run a barber shop, hairdressing salon, supermarket or sports bar there are various concepts that we must employ. Customers must be able to set your business aside from the rest and make you their first choice. It is important for you to invest adequate time planning and structuring to achieve this advantage. 

5. Vision & Mission Statement: A commonly ignored aspect by entrepreneurs being that most of them think that leaving this vision within your mind is enough. Hence our customers and employees fall largely out of line with immediate and future goals, which then leads to a misaligned business losing value. Take the time necessary to structure your vision (where you see your business in the future) and mission (how you basically wish to operate at all times) statement properly as these concepts will define your business operations at all time. Everything else will especially be aligned based on these concepts and thus will be integral to your business success.

6. Corporate & Brand Image:  The ambience, layout, platform and vision that you wish to create every time the name of your business is uttered on the lips of your customers or society at large. Just think about Digicel for a minute, look at all the support that they have given in the fields of sports, youth development & culture. They have literally had their name on the very lips of all citizens on our land. This is the aim also for your business, accepting your corporate social responsibility to create a legacy that embraces positivity and growth amongst people.

7.  Competition: It is wrong to structure your business thinking price is the main driver for competition.  Think about all businesses within your nearest geographical area that are closely aligned with yours. Their prices and products/services will affect the way how customers think before they actually choose to buy from your business. It is important to understand both the market and product value of your goods or services before you price them. Remember customers will always try to evaluate all their options, hence it is important for you to know your competitor's prices, market alignment, business layout and product quality in order to ensure that you're always on top with what your customers need.

8. Location: It is important for you to choose a location that's easily accessible to all your customers and suppliers. Remember that you have to also think about the competition, nearness to resources, transportation costs and other key factors. Customers should always feel at ease to come to your business without the threat of security or harassment as this will only create a form of restraint on the accessibility of your products or services.

9. Source of Capital/Funding: Whether you're thinking about going to the bank, family members or generating funds, it is important to understand capital source requirements to start your business. Many potential entrepreneurs quit their ideas at this very stage due to a great deal of dedication that's required in order to access funds when starting from nothing. There are various banks and lending agencies that you can go to access grants and other means of funding. However, this is vastly dependent on the profitability of the idea that you have at hand.  A good business plan is an asset.

10. Forecasted Income & Expenditure: Be aware that the potential for high profits might enthuse you to ignore the weight of the necessary expenses that must be covered when running your business. Hence it is extremely important for you to spend the necessary time to forecast your profit margins and expenditures based on an 8-12 months period. This will require for you to do an intense research or outsource this responsibility based on your market and competitions to have a clear view of these figures.  Researchers have shown that this is the advantage that profitable business has over business struggling.

Running a business is like running your home, if it's not natured or planned right you will only leave it up to be manoeuvred forward and backwards based on the economy or market that you choose. It is important to take the time necessary to plan strategically. Try to understand these concepts as they are necessary steps needed to ensure that your business is managed properly towards being successful. If you are not aware of these terms, take the time out to do your research or speak to a business consultant or financial advisor.

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Edited by: Debbie-ann Fagan-Warren
              CEO │ Solutions Giant

BIZcare Consultation & Accounting Firm is a consultation agency that operates within the small parish of Clarendon in the beautiful land of Jamaica. We are geared towards educating the minds of upcoming entrepreneurs of the important aspects that must be considered before starting their businesses. Hence why we operate under the slogan 'Your Business is OUR Priority' and tagline 'Helping Small Businesses & Individuals to better Organise their Business Functions.'

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