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Keep Your Present Job
Being practical is extremely important when you are toying with the idea of starting a business. You need a steady source of income before you can set up your business, so it’s advisable to hold onto your current job. By retaining your present job, you will be more secured when you need to take risks.
Coming up with a great business idea is just the beginning of your journey as an entrepreneur. There are many more steps that you need to take before you can get started. Fleshing out your business idea is one of them, and it’s very critical to the success of your venture.
You have a brilliant idea that you know will definitely work, but what about your competition? Will it be difficult for a rival to copy your idea and repackage it in a better way? A potential investor will ask you this when you approach them for funding. It’s very important to understand the market you operate in and your competition.
You require money to start your business, but how much do you really need? Without a clear idea you run the risk of coming up with an unrealistic valuation of your business, which will put off investors and get your loan application rejected. So before you start wondering how you should raise money, you should focus on evaluating your funding requirements. How much do you need to get started? How exactly are you going to use the funds?
Crowdfunding platforms such as Kickstarter have changed the way entrepreneurs are raising money to fund their new businesses. Whether you want to sell a new software tool or set up an organic noodle bar, you can get people to invest in your business.
When you don’t have money to start your business, it’s essential you find the right people who can help. You may attend events and trade shows where you can find potential investors. You may also join various online forums on social networking sites where you can find useful tips and resources to bring your business to life.
Want to be sure if your business idea is indeed unique? Run a test and find out. A pilot will give you the confidence you need to take your idea to the next level and mitigate risk. You can start on a small scale by giving away some freebies to a few people in your target audience group to see how they respond.
If you are planning to get into a completely new business, it would really help if you got a second opinion from someone who knows the market and the challenges involved. A business idea that looks good on paper may not be that attractive when you actually get into it. An expert’s opinion may help you look at things from a different perspective and gain more knowledge that you may lack.
There are several loan programs aimed at helping first time entrepreneurs set up their business. The Small Business Administration (SBA) operates the loan programs offered by the U.S. government. To qualify for the loan, your business must meet some criteria such as your business must operate in the United States, your business must qualify as a small business according to SBA guidelines, you must operate for profit and you should have a good credit score.