STARTING A BUSINESS/MINISTRY

Starting your business right begins with the premise: there’s a need for the business you’re starting. If you have not taken the time to think through and evaluate whether there is a need for the business you are starting, do so. I have included a business startup checklist in the freebie section to help you. We are going to proceed with the premise you have determined there is a need.

This month all information is for businesses, personal and ministry/church development. However, I will provide special additional information for those who are starting a church/ministry.

Estimates vary, but generally over 600,000 businesses are started each year in the United States. Yet for every American who actually starts a business, there are likely millions more who begin each year saying “OK, this is the year I am going to start a business,” and then don’t.

Also, about 20% of those businesses fail in the first year. Some causes for failure are not the fault of the business owner, i.e., wars, recessions, high taxation, high interest rates, excessive regulations, etc. However, there are some reasons the businesses owner is at fault: poor management decisions, insufficient marketing, inability to compete with other similar businesses, a lack of interest from the public in the business’s offerings, poor foundation, lack of information and support, etc.

 ·  Everyone has his or her own roadblock, that one thing that prevents them from taking that crucial first step.

·  Some people are afraid to start; they may fear the unknown, fear failure, or even fear success.

·  Some start something overwhelming with the mistaken belief they have to start from scratch. They think they have to come up with something that no one has ever done before: a new invention, a unique service, etc. What they are really doing is reinventing the wheel. It is not necessary.

What things do you need to do to get started?

1. Research.

Get the information needed to understand the industry you’ll be involved in. You may feel you have a unique business idea. You should still know who your competitors are. See what the market will bear before you get started.

2. Know who your buyer is.

Consider who is going to buy your product, otherwise referred to as your target demographic. These people will be the driving force in each decision you make. When you understand who needs your product or service, you can help fine-tune your offerings and ensure your marketing and sales strategies are reaching the right people. Your target demographic is either a consumer,  a business, or both. You will also divide your audience into other categories, such as age, gender, income, and profession. You can’t earn a profit without customers. Take the time to understand who your customer is and make them your priority.

3. Be clear about your mission.

How will you fulfill your vision? What are your business’s strengths, weaknesses, opportunities, and threats? Knowing your mission guides you and determines how you will make your important business  decisions. You must define your mission clearly.

4. Choose a structure.

A key initial step to take when starting your business is choosing its legal structure. Whichever structure you choose will dictate your taxes, paperwork, liability, and other legal aspects. It will also determine you can have employees. Depending on the state and often county where you live, you will need to create articles of incorporation, get an employer identification number, and apply for necessary licenses, which will vary by state and industry. Seek professional and even legal help to best advise you on the structure to take and the necessary paperwork that needs to be filed.

5. Be clear about your finances.

Starting a business requires money that you likely won’t have right away. This means, depending on the size of your business venture, you will probably need to gain capital. There are several options available to you as a budding business owner. The first and usual place to seek capital is with friends and family. If you cannot raise what you need, expand the search to what is called “angel investors” and “venture capitalists”. If you cannot secure investments, you can apply for a business loan through banks and small business associations. Whatever method you use to generate funds, you need a plan.

6. Understand your tax burden.

The last thing you want to do is to be negligent when paying your taxes. Organize your finances and that includes your taxes. They will be based on your business structure. Sometimes there are multiple payments to make, and filing any of them late could cause severe consequences. Get the help you need to understand when, how and to whom you pay taxes and fees.

7. Understand the risk.

There are always risks with launching a new business. Calculating, understanding, and planning for risk is an important step to take before you start. This means assessing your industry’s risks before moving forward with a business plan.

If you have a business where people come and go and there is a possibility that someone may fall, you would also need general liability insurance, which can pay for lawsuits. Take the time to assess the risk involved, as this can help you prepare by obtaining the right insurance that can protect your new business. If you don’t think you can do it on your own, get someone to help you.

8. Put together a business plan.

A business plan outlines the steps you need to take for a successful launch and continued growth. This document is important for establishing a focus for your business, attracting professionals to work for and with you, and seeking and keeping capital. A business plan ensures you put your best foot forward. If you need help writing your business plan, there are many ways to get the help you need. There is even software that can help you. Take the time to gather information that goes into a business plan. This information includes, but is not limited to:

·  Your mission statement

·  A description of your business

·  A list of your products or services

·  An analysis of the current market and opportunity

·  A list of decision-makers in the company, along with their bios

·  Your financial plan so those who review can understand the opportunity

 
If you don’t think you need a business plan because you know what you want to do, you are wrong. It is a guide and supports the vision of your business. You can also use it to recruit executives, fund raise or expand.

9. Time it right.

People always wonder and ask, “When is the best ‘time’ is to start my business”. You can launch your business whenever you want. Naturally, you want to launch in strong economic times, after assessing what you are offering, who is buying, when people have money and are looking for ways to spend it, etc. However, launching in tough or uncertain economic times can be just as smart, if you do your homework.

Timing is an important element of building a business. Launching at the wrong time can make it challenging for your new business to succeed. Take the leap when the timing and circumstances suggest it’s right.

10. Look for a mentor or advisor.

You don’t have to starting your business alone. Though it may be tempting because of how proud you will be to say you did this on your own. Still, finding someone who has made this journey before can help set you up for success. Network with other professionals in your industry, attend industry-specific workshops and events, and reach out to leaders in your industry to learn their approach. You may also  consider hiring a coach who can give you pointed advice. (Check the newsletter from April: Should You Hire a Coach?) It provides information to help you make a coaching decision. Learning directly from someone else who has gone through the process to help you set up your new business for growth is a great idea.

11. Hire a professional.

It’s impossible for entrepreneurs to know everything about running their new venture. Tapping into the experience of seasoned professionals can make sure you’re starting on the right foot. It’s especially important to have legal assistance to ensure you are protected and going about the process the right way. You should not wait until we get into trouble to get legal advice. Be preventative and proactive so you start off with a foundation that sets your business on a path to long-term success. You should also consider hiring an accountant. An accountant can help you understand what you needed to do to make your business profitable, and also inform you of the state, federal, and local tax requirements.

The Name and the Logo has changed.

However, the ministry and vision are still the same. 

There in nothing more for this area this month. Please use the information in the main article.