As consumers, we develop opinions about the products and companies we use, sometimes even forming ideas about how they could function better. When taking the leap from customer to business owner, these pieces of advice may help you navigate.
Before you jump into anything head on, it’s important to thoroughly think out your strategy and plan. Ask questions like, “What, precisely am I selling?” “To whom will I be presenting it to?” “How much help do I need in creating and maintaining this item/service?” “What will it cost on daily/quarterly/yearly bases?” If any of these queries seem untenable, it’s time to do some reworking.
Don’t skimp on your business plan. This is the document you will present to venture capitalists, investors, and other interested parties, and thus it can make or break your vision. It should include a detailed sketch of your expected costs and profits, provide a convincing argument about your company’s value in the context of competitors, and explore the market you intend to reach.
Complete all required licenses and patents, and decide upon a legal structure. If at all possible, appoint a consultant to help you evaluate these aspects, as any missteps left uncorrected may become a massive headache down the line.
Consider ways you can cut costs. Would leasing any required equipment be possible? If you only employ a limited number of individuals at outset, consider an office-share situation, rather than renting a space you don’t need yet.
Once you have a clear idea of your financials, set out finding the funding your business needs—and saving. In addition to approaching venture capitalists, make it a habit of bypassing exorbitant purchases; every dollar you don’t spend is one that can make you more money in the future.
Marco Bitran is an accomplished entrepreneur and founder of AI Exchange, Inc.