4 Great Things To Learn Before Starting A Business

Starting a business is potentially life changing journey. While no one can prepare you for the experience of starting a business, there are some skills that can make the process that little bit easier and less overwhelming. Here are four great things that are useful to learn before starting your journey.

Legalities

While it’s easy to get swept up in the excitement of starting a business it’s important to consider what regulations and licenses you need, the taxes you will have to do and the importance of trademark and intellectual property laws in protecting your brand. This might sound complicated and boring but understanding these laws and regulations will prevent you from getting your business into any legal trouble. It is important to remember that your brand represents your business and so you have to protect anything associated with it, whether it be your business name, graphics, logos, marketing materials or product names to prevent others coming along and using your ideas. It is a good idea to consult with a lawyer before starting your business to make sure that everything you have planned is in compliance with the law and for advice on any issues that are causing you confusion. However, it is still essential that you have a basic understanding of these concepts yourself to prevent a technical legality or a minor administrative issue leading to your business’ downfall.

Financial Literacy

As a business owner, it is important to have an understanding of money and know how to manage money wisely. In order to be successful, regardless of your industry, a certain amount of financial literacy is required. You might not be starting your business to become a millionaire but it is still vital that you make enough money for the business to survive. Essentially, in order to survive your business needs to make more revenue or profit than expenditures on basic operating expenses. Even if you have a bookkeeper or accountant, there are certain financial concepts and processes that you must understand as a business owner. This includes skills like being able to read balance sheets, profit and loss reports and cash flow statements. These skills will enable you to understand cash flow projections and thus make business decisions relating to expansion. In the early days, it is also important to understand how you will fund your business and this too requires a degree of financial literacy. For example, will your business be self-funded from your pocket? Or will you look for outside capital from private investors, assistance funds or venture capital funds? Whatever you choose, you need to know the implications of the choices that you’re making.

Coding And Analytics

No matter what your business is, there is no denying that we live in the digital age and that the internet is a huge part of our lives. Owning and running a business now involves the daily use of the internet whether it’s in the form of a website, an e-store platform, using social media or emailing clients. An understanding of coding and analytics enables you to have the basic skills to build and run your own website without having to pay someone else a hefty fee to do it. Finding high quality, inexpensive web developers is near impossible, particularly when you are in the baby stages of starting a business. Learning code can be complicated by thanks to online education and courses, you can begin your coding journey now. Knowledge of analytics will help you to understand how much website traffic you’re getting and what areas of your online presence might need improvement once things are up and running. While you may eventually have an IT team or staff member who can take care of these things for you, they are useful skills to have in the age of the internet. Grasping the basics of coding and analytics will help you fix simple problems and enhance your website without having to call in outside help.

Networking Skills

Networking may seem like a less technical skill but as a business owner, it is an essential skill to have. It is one way of building contacts, advancing in your industry, finding potential clients and just generally learning more. While networking may come more naturally to some people than others, there is no doubt it is a skill that you can work on and improve. The great thing about this is that every time you meet or are introduced to somebody, regardless of who it is, you have the opportunity to hone your networking skills. One way that you can practice networking is by networking with your current contacts. This is important because networking isn’t always about forming new relationships, it can also be about cultivating your current relationships. Networking with friends, colleagues and acquaintances is a good way to ease yourself into the dynamics of networking before you start your business. Once you’re in the process of setting it up, it’s a good idea to attend industry events, join online forums and arrange meet-ups with people in your field. If you don’t feel confident networking, try preparing before a big event or meeting. Just like exams or presentations, this is likely to make you feel more confident and you better results. Do research ahead of time about the event, the speaker and the attendees so you know beforehand who are the people you should be talking to. Remember that networking is as much about listening to and helping others as it is about getting something out of it so make sure that you don’t spend your whole time giving a sales pitch.

Starting a business can be an exciting but nerve-wracking experience. Often new business owners have invested a lot of time, money and effort on their venture and so feel the pressure to succeed. Having the right planning and preparation and understanding things like the legalities and finances is crucial before starting a business.

 

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