Almost 2 in 3 Small Business Owners Say They Should’ve Done More Research Before Starting a Business. Do These Things Before You Start Yours

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Gearing up to start a business? Read on to see what legwork you should do first. 

Starting a small business isn’t for the faint of heart. It takes a lot of time, effort, and passion to run a business. And if you don’t know what you’re getting into, you might sorely regret your decision to start a business.

A recent Incfile survey found that some small business owners have regrets. A good 65% say they should’ve done more research and prep work before kicking their ventures off. And 10% said they should’ve chosen to start a different type of business that would better fit their lifestyle and needs.

If you’re gearing up to start a business, it’s important to go in equipped with the right information. Here are some key steps to take before diving in.

1. Research your costs

There are different costs you might encounter in the course of starting and maintaining a business. And you don’t want those to catch you by surprise. So before you start a business, do some research. See what the financial obligations are and what the rules look like in your state.

You might, for example, have to maintain a workers compensation policy even if your business doesn’t have outside employees. And there are certain filing fees that you may owe to your state in conjunction with reporting requirements. Crunch all the numbers so you know what to anticipate.

2. Talk to other small business owners about their experiences

It’s easy to romanticize the idea of owning and running a business. But the actual ins and outs of running a business might end up constituting a harsh reality check if you don’t really know what to expect.

Before you start a business, have a heart to heart with people who have owned their own companies for quite some time. Talk through the pros and cons and listen to the challenges they’ve faced — financial and otherwise.

Starting a business can be a lot of work. But so can dissolving a business. You don’t want to end up going the latter route simply because you didn’t realize what you were getting into.

3. Meet with an accountant

You might think you’re in a strong enough financial position to start your business. But what if you’re likely to run out of funds in short order, and you don’t even realize it?

Before starting a business, sit down with an accountant who can review your finances and anticipated expenses. A professional can assess your savings account balance and other assets you’re bringing into the business to see how long your money is likely to last.

Remember, it can take a long time for a business to turn a profit. You’ll need to manage your money very carefully until you’re solidly adding cash to your business’ bank account.

An accountant can give you a realistic view of how long your resources will last. They can also advise you on cost-effective ways to scrounge up capital for your business, whether it’s by borrowing against your home or applying for a small business or personal loan.

You may be excited about starting a business, but it’s essential that you go in prepared. Take these steps ahead of time so you don’t wind up lamenting your decision or getting in over your head.

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