Some companies flourish while others fail. One reason for this is found in proper planning. Taking that into account, here are three aspects all new business owners should consider.
Buying or Leasing an Office
When it comes to a house or apartment, it is often better to buy. If you don’t have enough money, you could always look into a housing loan. There are plenty of affordable options in the market.
For a starting business, the choice is unfortunately not as clear as one would hope for. Depending on the type of firm you own and the industry you are in, either option could be a good one. Still, there are a few questions you could ask yourself to make this an easier decision. They include:
- How important is the location? If you are the owner of a trendy shop or restaurant, you might consider leasing. The best places are often not for sale.
- How much money do you have? A long-term investment is a valuable asset if you have enough capital. Along with stability, owning an office will provide you with tax breaks and other benefits.
- Do you need space? If you work freelance or in a virtual team with global members, it’s unnecessary to have a physical workplace. Instead, you could hold important meetings with staff and clients in virtual offices.
- Is flexibility a must? If you see a lot of room for growth, buying space is not the right choice. The same goes if you need extra room for a factory or production facility. On the other hand, this isn’t vital in a paper-based environment with many clerical tasks.
By asking yourself these and other questions, you will make the right decision for your specific needs.
If you need to hire ten people to run your new business, how many of them should be full-time employees? Do you need any part-timers, freelancers, or per-project workers? What about temporary staff or interns?
Variety is the spice of life. But this is not always true in a business situation. Just because you can hire different types of workers doesn’t mean you have to. It is not a one-size-fits-all proposition.
As a rule of thumb, hiring full-time staff for routine, crucial tasks is the best course of action. By crucial, we imply critical jobs. Routine entails those done most often.
A simple example is factory workers. If you are in the clothing business and need people to cut, sew, fold, and arrange textiles and fabrics, you probably need full-time workers. If you are a web designer, you could use an assistant’s services once in a while but not all the time.
The key is to understand the differences between these and other contract types. Keep in mind. It’s not only about the time a person is working. There are plenty of other factors to consider, such as benefits, tax laws, promotion practices, healthcare, productivity, and employee welfare.
Passion versus Opportunity
One of the most interesting parts of 8-time Grand Slam winner Andre Agassi’s biography “Agassi” is when he mentions that he hates tennis. It is especially appealing because he is one of the most successful tennis players in history. He not only won a lot of tournaments but also earned massive amounts of money while doing so.
If Agassi hated the sport so much, how come he was so successful? If Mohammed Ali despised every second he was training at the gym, why is he considered by many as the most accomplished boxer of all time? Is there a link between success and passion? Is it about hard work and dedication?
The average person will work around 30 years during his life. An entrepreneur will most probably continue running his business until the moment when he is no longer physically able to do it.
Therefore, the question for new business owners lies in finding a balance between what you do for a living and what you like. If the time is perfect for a new company to emerge in an industry you are not interested in, should you still go for it? Only you know the answer.
Work is work. There are no two ways around it. Still, passion leads to innovation and progress, and motivation is the fuel that guides it.
So ask yourself whether you are doing it for the money or because you have a strong desire for it.
Starting a new business is a wonderful path to take. However, before going on it, you should know where you will be, who you will be working with, and why you are doing it. It’ll give you a much stronger chance to succeed.