Starting Your Business: Timeline, Website, Sales
The key is in not spending time, but in investing it.
– Stephen R. Covey
When you decide to start a business one of the questions that you may wonder is, “how long until I am profitable?”
This is completely understandable when you decide to put your time and energy into a business that you would like to see grow. However, several steps will lead to your business growth and financial security. Be sure to ask yourself questions such as, “what is my timeline?” “How do I get a website?” And most importantly, “ how will I sell my product?”
TIMELINE
A business takes time and planning to start and turn into a profitable company. While some companies may seem like an overnight success, the people behind these businesses spent years refining and growing their business until it became successful.
Many factors will go into your business so it is important to give yourself the necessary time to fully visualize and execute your new business. While this can seem like a long process it is surprising how quickly you can begin to move once you start putting things into place. Most experts suggest a 12-month plan to assess your business, gather resources, then ultimately launch.
KIND OF BUSINESS
Starting a business will open up many possibilities and one decision that will shape the trajectory of what you are looking to accomplish is the kind of business you want to open. What this refers to is if you are looking to start an independent business or purchase an existing business or franchise. When most people think of starting a business they often think of starting from the ground up and building from zero, however, there is an option of purchasing an already existing business which can alter your role and responsibilities as an owner.
Franchises do tend to have larger upfront costs because you may be agreeing to the purchase of equipment, assets, and the location of this business. The plus side is that you are buying a business that has brand recognition as well as a support team from the corporate headquarters.
This differs from an independent business because you are not required to put a large sum of money down to launch. With an independent business, you have control over the purchase of equipment and supplies as well as the ability to spread business expenses over time while working from your own home, cutting office costs.
There is no right or wrong answer when it comes to this decision, but be fully aware of what each decision does entail and weigh the pros of cons of an independent business vs. a franchise.
GET PRE-QUALIFIED
One of the very first steps you want to make is whether or not you will be taking out a loan to finance your business or if you will be self-funding. Those who begin this process may skip this step for fear of feeling you have to work with a certain company or make an immediate commitment. If you are looking to fund your business feel free to look around for the best option for the business you are wanting to establish. Getting pre-qualified is a simple process and can make it clear about what you need to move forward and doesn’t require you to commit to any particular establishment.
It is important to understand where you stand financially so getting pre-qualified is a great idea. You may find that you are approved for more than you expected which can open up more opportunities, however, we advise proceeding cautiously and not taking on more debt than you can logically handle. There of course is the possibility that you may not be as qualified as you assumed which means taking time to reassess finances by paying down other debt as well as saving for a larger down payment.
6 to 12 MONTHS
Once you decide the kind of business you want to establish and understand the process of financing you are qualified for you can begin laying the foundation. Before getting started be sure to write your business plan. Simply put, a business plan is a document that lays out your business for potential investors, financial institutes, as well as highlights benchmarks. This illustrates your goals for the business and can help keep you on track and most importantly keep you on budget.
While a year can seem like plenty of time and at times you feel as though you are moving slowly you are constantly making strides to open the doors to your business. This is the perfect time to take your pre-qualification and move forward with financing if this is the option you prefer. During the pre-qualification, you were able to see the amount of financing you have access to, but it does not mean you have secured the loan. It is important to give yourself enough time with financing because in some instances it can take several months to secure. There are several types of funding you can prepare for such as:
Small Business Association Loan (SBA)
SBA loans can be a lengthy process because each loan application is different. In this particular situation, you will work with individual banks and credit unions to qualify for the loan. However, there is a way to speed up the process by working with a company that offers SBA loan packaging. This allows you to complete just one application that will be sent to different lenders that have been selected based on how likely they are to approve your loan. Although this application can be easy the process for approval can take anywhere from 2 weeks to 90 days.
Rollovers for Business Start-ups (ROBS)
ROBS also referred to as 401(k) business financing, is a tax-penalty free transaction that allows you to use your retirement account for small business financing. Completing ROBS funding can be done in a week but it is important to check with your retirement plan before attempting this option. Some plans do not allow for you to roll money out of the plan while still actively employed. This means making a decision that requires you to quit your job or continue to work until you have more money saved.
Friends, Family, Investor Funding
Some people may not qualify for a loan or be comfortable using banks at the beginning of their business for a variety of reasons and may have to look elsewhere for funding. If you do decide to go the route of raising capital from friends, family, investors, or crowdsourcing allow yourself plenty of time to raise funds and be fully prepared to show people your business plan, details regarding your product or services, estimates of costs, etc. This is a process that will not happen overnight so be sure to start early.
Real Estate
If your business will require a physical location it is good to start as soon as you can by looking at properties and gathering as much information as possible. Do not feel pressured to buy real estate when looking to establish a location, as a lease may be a more feasible and economical choice in the beginning. Research locations and prices that work for your business, finding the right location that is in your budget rarely happen quickly so begin the search as soon as you can. Working with a real estate agent or attorney will help ensure that any location you choose is right for you especially in cases of franchises where a location has particular guidelines and requirements that may alter the layout of the space.
Filing Business License
To run a successful and legal business you will need to acquire a business license. Depending on the type of services and products your business will offer can affect the amount of time it takes to receive the license. Keep this in mind if you are planning to start a business in the food and beverage industry or professional services including legal, tax preparation, and medical offices.
6 MONTHS to LAUNCH
Build Your Team
It is likely that at the beginning of your business you will be focused on establishing a foundation and doing everything yourself. However based on your business you may find it impossible to do everything yourself, finding a team becomes important to begin to divide responsibilities and create a workflow. It may not be feasible at the beginning of your business to have multi-person teams, but that’s ok! Many small businesses are finding success with just a few employees which allows for transparency as well as clear communication among team members. One option that many entrepreneurs may overlook is outsourcing work as opposed to hiring multiple team members. Sites such as Fiverr, Upwork, and Freelancer offer a wide inventory of skilled professionals that can be hired on a project-by-project basis or for long-term assignments. This is especially important with legal services, tax services, and administrative responsibilities.
Business Services
Selecting and having the right tools from day one is important to the success of your business. Having your payroll and bookkeeping programs set up well before the launch of your business will save you time down the road and is critical to your business success from day one. Even if you are the only employee it is important to create habits such as appropriately allocated taxes as well as timely paycheck deposits to avoid IRS or Department Of Labor fines.
Using a digital program such as Quickbooks will save you time and ultimately a bigger headache because you can manage the information yourself. A bright side is that you can obtain a CPA to access the data when it comes time for tax preparation which will not only save you time but also money.
Online Presence
A step that can easily be overlooked when creating and running your business is a website and social media. Having an active online presence when you are ready to conduct business will solidify your reputation as well as establish yourself in your field of expertise. Using social media and your website will help get the word out about your services and products while helping you gain visibility and brand recognition while building trust with clients and potential clients. Regardless of your product or services, it is always important that people be able to find you and your business.
If you are unsure where to start, think about your business and what you offer and find a platform that best suits you. When in doubt create a Facebook Business Page, this will help give clients a way to find you and ultimately do business with you. Not to mention that having an active Facebook page holds key information for your business such as your phone number, address, website, and a way for clients to communicate with you, which helps build trust.
Website
No matter what business you decide to pursue having a website is important and essential for your success. Many people turn to Google to find out about a company and you want your website to be the first thing they see. You want your website to establish your business as well as represent who you are as the head of the company.
Obtain Domain name.
One of the first things when starting a business is you will want to establish the name of your business and ensure that no one else is using that name. Once you have secured this information you can then register your domain as quickly as possible, even if your site does not yet have content. Using a site such as Godaddy.com or Bluehost.com you can purchase your domain reserving it to be used when you begin building your website.
Where to host your website.
Where do I host my site? To keep things as simple as possible we suggest using a platform such as Squarespace, WordPress, Wix, etc. The benefits of these platforms are that they provide step-by-step instructions to set up your website if you wish to do this yourself. They also provide templates for website layouts as well as custom-built templates if you wish to have something tailored specifically to your tastes. They also serve as a great jumping-off point as they all have options to expand the site's abilities. This is based strictly on your business needs and can vary from industry to industry.
DIsplay Clear Description of Your Business
When people land on your website you want them to know instantly who you are and your business right away. Establishing that brand recognition and appealing to potential clients allows you to redirect them to other parts of your website such as the About Us page or the services page to fully grasp who you are and what you provide.
If you do not feel comfortable doing this task you can find guidance from people who have experience building websites or contact someone through a platform such as Fiverr, Freelancer, or Upwork. If you decide to hire someone to build your website, factor this into your startup costs and make sure that you are specific in what you want for your website and overall web presence. This helps streamline your message and make it more easily digestible for potential clients.
Become A Salesperson
You are ultimately the biggest advocate for your business and you will likely be taking the lead to bring in new business as often as possible while not overwhelming yourself. As your company salesperson, you will lead marketing efforts to gain exposure to your products and/or services. To be a successful salesperson it is important to have impeccable time management skills. This means the same dedication you put into starting your business will be needed to pursue new business and keep yourself motivated.
There is no such thing as a natural salesperson and the good ones make it look easy. But with focus and the right steps, this can become second nature to you. To succeed you may have to look beyond standard sales practices.
Stop thinking like a salesperson. People do not like to be sold to and to come off as an expert in your field you will want to adopt this attitude. Focus on listening and absorbing what someone is saying to find out if your product or service is a good fit for this person. Being thoughtful and intentional goes a long way in establishing a rapport with potential clients.
Listen. This step is identifying their pain points and identifying their frustrations before proposing a solution. If you can listen and understand the problem then you can adjust how you speak about your product/services and how you can make their life easier. By not sounding like a salesperson it will help clients feel heard and will lead to longer relationships.
The downside of P.E.P. Persuasion, enthusiasm, and pitching. Many salespeople use this as a way to frame their conversations with potential clients, but can sometimes not be as successful as one may hope. If you are just entering into sales to help build your company it may benefit to disregard P.E.P and focus on a genuine approach that helps to resolve key frustrations. Ultimately if you have to persuade someone into using your product, or “sell” them on the idea, they likely aren’t a good fit. Genuine enthusiasm is great as you are excited to be doing something you are passionate about, too much enthusiasm can come off as insincere and salesy. While pitching can miss the point of understanding a potential client’s problem. Adopt a positive, informative, genuine approach towards potential clients who will then view you less of a salesperson and more of an expert in your field.
Share challenges. You are likely starting a business that you have some familiarity with and have researched the industry. This means you have come face to face with challenges and problems, share these challenges. Your potential clients want your wealth of knowledge and experience so capture their attention by listing challenges you see in the industry and giving your clients something they can relate to. This can lead to more discussions as well as multiple sales to address other challenges that you can provide expertise about.
Ask. The most important thing you can do when speaking with potential clients after listening is asking them about their challenges. You may have an idea of their challenges through the initial meeting but opening the door to conversation gives you an even bigger picture of their frustrations and challenges and allows you to show how you as an expert in the field can help alleviate that stress. Asking open-ended questions and letting them speak openly and freely will help garner this trust.
15-Percent Rule. When you are meeting with a potential client it is important to be an active listener. Talking does not put you in control of a conversation but great questions can. You want to be engaged but also allow them space to speak while you listen and provide prompts such as,” Really?” Getting in this habit will help people see you as an expert as well as a thoughtful listener.
Know when to walk away. This can be a tough one. If you run into a situation when a potential client simply answers “no” to your inquiries about their challenges then it is likely it is not a good fit. This is the importance of being an active listener as well as not being too “salesy” as it can come off as insincere or pushy. Simply thanking them for their time and letting them know if they have questions they can contact you will go a long way in gaining respect in your industry.
Never need a sale. There are times that you may need a sale to pay bills, but potential clients must never know. When meeting clients always reflect that you want to meet with them because you believe the product/services you offer can help them. Appearing confident and successful will help put any potential clients at ease as they will be able to see that you are an expert in your field and are looking to help them.
Starting a business can seem intimidating even when you have taken the time to research and plan your business. Taking the time to do it right and prepare for each step along the way can seem tedious but you will reap the rewards down the road. So it is best to get started today.