There are many factors to consider!
To ensure your potential business will thrive in your community; it is important that the community will patronize your business rather than a competitor’s . This is where a little market research and a competitive advantage comes in.
It is also important that you are aware of the energy, time and commitment necessary to managing your own company, and that you have the necessary skill, experience, permits, accreditation, and resources to do so. As most start-up small businesses fail within the first two years, the better prepared you are, the better chance you will have at succeeding.
Starting your own business requires at least 70 hours of work a week, a network of alliances including suppliers and advisor’s, a network of potential customers, an understanding of the demands and requirements needed for the industry you are interested in, whether it be retail, food service, manufacturing, etc., and the demands needed for your family and social interactions.
Location, location, location! Where will your business be located? You wouldn’t want your business right next to a competing business nor would you want it far from any potential customers.
Serious consideration needs to be given to the start-up costs, which include buying or leasing the land and building, and any renovations that need to be done. Then you have to think about your desired customer base and how frequently they will buy your product, therefore you must also think about the buy and sell cost of your product, as well as any discounts or promotions that go along with your product in order to account for a more accurate revenue projection, and how frequently the product would be bought or used.
Business expenses can include wages for staff, the owner’s draw ( your salary!), loan repayment, inventory, maintenance such as equipment, office machines, and vehicles, and expenses, such as rent, phone, gas, and insurance, and you can’t forget about the tax man, even if the company is based inside the home.
Do you have enough capital? Do you have investors or will you need a loan? There are several steps you need to take first before requesting a meeting to discuss obtaining a loan.
When applying for a loan it is required that a business plan be drafted. A business plan includes financial statements or projections, with the correct estimations of revenue, expenses, start up costs, balance, cash flow, and the critical break-even point for the business to ensure its survival.
Before requesting a meeting, you must ensure you are well-prepared and have your business plan in hand for a visualization of the requirements needed and the ideas you have for your potential business. As a business service officer and a loan officer will have several expectations before your meeting.