What to Do When Starting a Business in Eden, PA

Entrepreneurship is part of the American dream. Millions of individuals start new businesses every year in the United States, but not all of them succeed. By the time the five-year mark hits, 50% of those new businesses will no longer be around. There are numerous reasons why a business might fail, and it takes hard work to grow a company to the point that long-term success is possible. 

For ambitious entrepreneurs in Eden, Pennsylvania, starting a business can be a big, yet rewarding challenge. Perhaps you have a great idea and a few friends who want to help you turn that idea into a successful business. Maybe you provide an online service as an independent contractor. 

Building a business is tough, so you have to know what you are doing if you want to make it past the first five years. Here are a few steps you might need to take when starting a brand-new business.

Determine the Structure

Running a business has some legal requirements. Right off the bat, it will completely change your income and how you file taxes, but there are a ton of other legal considerations. Figuring out what structure your business will be is priority number one. Is it a sole proprietorship where you are the sole owner and employee? Is it a partnership between you and someone else who will share equally in the responsibilities? Should you set up a limited liability company (LLC) to insulate your personal finances from the success of the business? Maybe you will even consider filing as an S or C corporation in Indiana. Either, figuring out the business model and the hierarchy early on is important to understand how the business will be run. 

Write a Business Plan

A formal business plan is a document that lays out your company's details, its product, its goals, and how it will achieve them. This document can get everyone on your team on the same page about the direction of the company. It is also a necessary resource if you are seeking outside investment since many investors will not consider funding a startup unless it has a formal business plan. Writing one forces you to consider many aspects of the company, including financial projections, market research, a unique value proposition, a marketing plan, product details, and executive structure. Even if many of these elements are question marks because you are just starting, laying out goals for them will be crucial to finding investors who believe in what you are doing and see that you have done the research.

Study the Audience

Every business has a target audience made up of customers who are most likely to buy the product or service in question. If you do not know who that audience is, you need to figure it out quickly. Audience research can make or break a business. The better you understand your ideal customer, the easier it will be to create a product they want and market it in ways that will connect with that audience. There are plenty of audience insight tools you can use to learn about these customers, including Google Trends, YouTube Analytics, Social Mention, and Facebook Audience Insights. This research should also be included in your business plan to demonstrate to potential investors that you understand your audience well. 

Conduct Risk Assessment

One of the hardest aspects of being a business owner is preparing for the unexpected. Every business faces risks to a certain degree. Some that are in more dangerous industries like construction face even greater threats. Assessing what those risks are and creating a plan to mitigate them can protect the future of your young company. The smallest slip-up could be detrimental if your business is not prepared. Whether that means investing in cybersecurity measures to protect customer data online, buying business insurance to protect against natural disasters/theft, or putting dust collection systems in your warehouse to promote better air quality, assessing risks and managing them will be important if you want your business to overcome various threats. 

Outsource When Necessary

As the owner of a new business, you have to wear many hats every day to build the brand. This can easily become overwhelming and even lead to burnout, threatening the future of the company. To reduce your workload, consider outsourcing some tasks when necessary. If you do not have the time or knowledge to do a certain task, accounting for example, you can pay an outside firm or contractor to do it for you. Although it will cost a little extra money, their services could be invaluable as they free up more of your time to focus on other tasks. 

Riding the Roller Coaster

There are very few owners and CEOs out there who would describe their jobs as easy, especially for startups. It is usually a consistent grind to build a company from nothing and maintain success for more than five years. Equipped with the right tools, however, it is possible to turn your entrepreneurial dream into a thriving business in Eden, PA.