Are you thinking about starting your own business? If so, great! This is a very exciting and unnerving time for you.
The decision to take a leap to self employment is monumental. While you’re making this decision, it’s good to think think through some of the questions you may have regarding your new business. Questions like:
- What type of business will I start?
- Do I want a franchise or a license?
- How much money will I need for my startup?
- Can I really quit my day job to start my own business?
- How many employees will I need?
- What type of workspace will I need?
While this list is long, truthfully, these are only a few questions compared to what you’ll be asking yourself as you work to launch your new business. But, let’s go through each of these questions to see if we can help you gather some information to help you start your own business.
What type of business will I start?
This is probably the most important question. I’m sure you already have an idea of what type of business you would like to start but answering these questions should help you fine tune your idea.
Think about what product or service you will sell and how you will go about selling it. Maybe you want to sell clothes, or dog walking services, or maybe you want to examine utility bills in order to save companies money. Whatever it is that you want to sell, it should be something you are passionate about.
Do I want a franchise or a license?
When you start your own business you have to think about franchise vs. license, unless you plan on creating your own product or service. Buying into a franchise presents many positives and negatives.
- Branding/marketing/designing done by franchise.
- No need to set pricing as franchise handles this too.
- No need to decide on what to sell.
- No control over price.
- No creative control.
- Franchise may have say in number of employees and amount of inventory on hand.
- No control over location of your store – if the franchise doesn’t want to open a shop in the location you picked, you either have to pick a different location or pick a different franchise.
- Franchise fees are a percentage of revenue, simply put: the more you sell, the more you pay.
Buying into a license also has positives and negatives.
- You are not connected with the licensor so your marketing/branding/design is completely unique to you.
- You can work from virtually anywhere, including your own home!
- You pay a flat fee every month so the more you sell the more money you make.
- Freedom to run your business how you want to.
- No brand recognition (until you build it!).
- License fee is flat rate, you still have to pay even if you don’t make any money (work harder!).
If it is freedom you are looking for then the license has plenty. You get the training you need and then are on your own to run your business how and when you want. Read more about license vs. franchise here.
How much money do I need for my startup?
Starting your own business costs money. You don’t want to do it if you can’t afford it. With some businesses you will need a workspace, inventory, employees, insurance, and many other expenses. Startup costs on these businesses can climb into the hundred of thousands of dollars. Other businesses can have a small start up cost. For example, starting you own utility bill auditing business has a small startup fee, namely the cost of the license and a few months of living expenses.
Can I really quit my day job to focus on my own business?
This depends on how much startup money you need versus how much you have. If you have enough then by all means quit your day job! But if things will be tight you may want to stick with your day job and focus on your new business in your free time.
How many employees will I need?
If you run a coffee house you might need a handful; a snow plowing company might need a dozen; a utility bill auditor doesn’t need any. It depends on the business – and this should be an important consideration as you determine what business to develop.
What type of workspace will I need?
Again, this depends on the type of business. For the utility bill auditor, you can work almost anywhere you would like, even from home.
These are just a few of the questions that you’ll want to ask yourself after you have decided to start your own business. Just remember that if you are passionate about your business it won’t feel like work. Good luck on your future venture!
If you have decided to start your own business and are ready to learn about utility bill auditing then you can always contact us.
*ECS reserves Southern Florida as its home base of operations.