With unemployment levels high and lots of people sitting at home doing nothing, the launch rate for new businesses is skyrocketing. According to Statista, 2020 was a bumper year for company creation. This is good news as it highlights an avenue for anyone who wants to make money and supplement their income.
Still, success is never guaranteed. To be successful, you have to ensure you have the right tools at your disposal. However, what most budding entrepreneurs don’t realise is that they don’t need as many as they think. Here are four things you don’t require to start a business.
An Idea
The idea will strike you as the most important part of the process. Without a concept, you don’t have a product or service to sell. You have nothing. Therefore, it’s essential to the long-term growth of the business. Yet, this isn’t always the case since franchises let you invest in a concept that already works. There are tons of investment opportunities on Franchise Direct just waiting for people to take the leap. If you choose correctly, you’ll gain access to the resources entrepreneurs kill for, including a tried and tested idea that is already gaining traction among a customer base.
A Business Structure
You can start life as a sole proprietor. There are drawbacks, and you need to be aware of them as they can come back to bite you. For instance, owning a sole tradership means you’re personally liable for everything. As Small Business puts it, there is no divide between your assets and the company’s assets. However, you can deal with that later. The key is to get started and get the business off the ground. Otherwise, you’ll spend weeks and months fretting over small details, wasting valuable resources in the process. Create a sole proprietorship first and then move onto a limited structure.
An Office
This is pretty self-explanatory considering what has happened in the past year. Still, some people prefer the setup of a physical office and continue to pay extortionate amounts for rent. It’s money that can be put to better use elsewhere, which is why it’s worth considering dropping formal workplaces for good. This doesn’t mean you have to work from home all the time, or coffee shops when they are open because you can hire collaborative workspaces. They are cheaper but more formal, giving you the environment you want at half the price.
A Loan
Money is essential since you can’t buy raw materials or pay employees’ wages without a big enough budget. Still, a huge loan from a bank isn’t the only option on the table. After all, suppliers might offer you trade credit if you can prove that you’re trustworthy and going to purchase goods regularly. Alternatively, a 0% credit card could cover the initial investment without you having to pay interest fees for the first year or two. And, if you’re lucky, there is always the bank of mom and dad!
Did you know you didn’t need the above to launch a business? Will you cement your plans now that you’re aware?
You must log in to post a comment.