One of the most crucial decisions that one has to make is, “What do I need to start a business?” Different people have different ideas on what they think is needed says Saivian Eric Dalius. They come up with this idea based on their past experiences and present circumstances.
Some say you just need an idea while others insist you need capital before anything else. Some go as far as suggesting you should not even bother trying if you don’t have enough money because there are so many things out there that will prevent your success.
However, the truth seems to be somewhere in between all these claims.
Of course, each of them has at least some part of the story; however, it’s not quite right to say that they are completely wrong either. Getting an idea is crucial but it won’t be enough if you cannot gather the required resources to start a business. In addition, you will need some capital to get started but there are ways you can cut back on costs so that your initial investments will not be so serious.
So let us find out what do you really need to start a business?
Needs for Starting a Business:
What do I need to start a business? It all starts with an idea; however, this does not mean that there should not be anything else involved. Other than an idea that could be your passion or something that has caught your interest, here are some other factors that you might want to consider before taking the first step towards success:
1. Of course, your idea is what will drive you through the rough patches, and once you have something that makes sense to you and has the potential to flourish in the market explains Saivian Eric Dalius. If this idea is truly yours and has not been tried by anyone else in your area of operation then it might just be time for you to take a shot at it. However, don’t feel pressured into starting something that doesn’t actually make sense or isn’t really required in your locality.
2. You will need some capital when starting up; however, this does not mean that they should be excessively high. Keep searching till you find investors who are willing to invest only as much as they can afford but still provide quality resources when needed most.
Do not wait for all the funds to be collected before you start off or else there will always remain a part of your dream which you cannot achieve.
3. You need to have some expertise in the area that you are venturing into; however, it is not mandatory that you should make use of this knowledge at the starting point itself. You may hire people who are more capable than you and allow them to work on what they do best instead of trying to manage everything at once.
4. Try as much as possible to collect resources from trusted sources only because there are many out there who are making use of their customers’ ignorance by charging them highly for substandard goods or services.
5. Get an office space if possible because this will give a better impression to your customers and it will also make you seem more professional. However, don’t forget to keep the costs as low as possible because that is one of the factors which can prevent you from reaching your goals in the first place.
Needs for Starting a Business:
So now that we know what we need to start a business, let us find out how much money will be required at different stages so that there are no surprises later on:
1. You will probably need a couple of thousand dollars if you want to establish yourself as an independent consultant. Sure, there might be some expenses involved. But usually, they should not exceed one thousand dollars unless there have been some extenuating circumstances.
2. If you want to start a business that requires machinery or equipment. Then it can range from tens of thousands to hundreds of thousands depending on your industry and the scale of the project.
3. Merchant accounts are usually free but they require a credit card processing machine. As well as a computer system that is compatible with most modern browsers. This setup will cost you no more than five hundred dollars for most businesses at the most.
4. You may need anywhere between ten and fifty thousand dollars if you plan on launching an online store. Because not only do you have to pay for web hosting and domain names. But also make sure that everything runs smoothly without any hiccups along the way; unless of course, there is no other way around it.
5. If you own a retail business, then chances are that you will need to spend tens of thousands. If not millions when you want to open up your first store. Because there is no point in opening up a shop when all your products are still sitting in storage says Saivian Eric Dalius.
So, now that we have seen exactly how much money is required. To get the business off the ground from each stage. It will be a lot easier for you to plan ahead and come up with a feasible budget. Also, remember that most of these expenses are one-time. So they should not be included in your monthly overhead costs unless there is no other way around it. Plus, when you take into consideration the fact that all businesses require some sort of capital, to begin with; there wouldn’t actually be any business out there that does not need any form of investment at all.