Guest Post By: Katrina Machetta
Have you ever had a dream to open up a local ice cream shop or create a nonprofit to send shoes to Africa? Don’t sweat it if you have a list of questions and concerns about making your dream business or nonprofit become a reality. A business is a big investment of time, money and resources and you want to make sure it is a good use of all three.
To help you get started we’ve compiled a list of the top 15 questions and answers that aspiring business owners and non-profit leaders ask.
1) How do I make sure I succeed?
The four leading factors are:
- Designing and strategizing around what you plan to do.
- Gathering the support your business needs, from your community and the other human resources you might need.
- Industry experience-it always helps to have experience, knowledge, and expertise in the field you are working in. You can have this experience yourself or work with someone who does.
- Determination and resilience for when times get rough.
2) Where can I go for help?
Many places specialize in helping nonprofits bloom, including our company. Our team helps you start with maximum support at an affordable cost. You can visit our site here: https://www.emcclartypllc.com/
Other great resources include the library, nearby universities, and helpful videos, conferences, and funding can be found on our Social Impact Tools List.
3) How much money do I need to jumpstart nonprofit or for-profit?
Financing your business out of pocket is usually the first step. Other great financial boosters can be family members or friends to help. Every business is different, and finances can vary greatly according to project size and goals. Make sure to speak with your accountant, financial advisor, or business lawyer for more financial advice. See question #4 for funding questions.
4) What are the types of funding?
Business loans are the most well know, but also more difficult for those just getting started. Other options include friends and family, crowd-funding, grants, patient capital loans, and selling stock.
5) What kind of marketing will I need to do and what will it involve?
Marketing is the key to a successful business. Keep in mind the products of your competition, your product price, and who the product is meant for. Social Media Marketing through Youtube ads or Facebook ads are a few great ways to get the word out about your new nonprofit/for-profit. There are also radio ads, paper ads, and landing pages.
6) Is it better to lease or buy equipment and buildings for my new for-profit/ nonprofit?
This is a good question and can depend on your resources, planned use, location, and needs. Most say, renting is the best option because paying monthly can allow you to be flexible with location and you are not tied down to a certain place.
7) What kind of accounting documents or budgets do I need?
- Assets and Liabilities, bank statements, balance sheet
- Salary, net profit, annual cash flow in/out of your account.
- Financial statements
8) How do I set a good price for my products/services?
The best way to determine a competitive price for your product is by researching in-depth other similar products/services to understand where the market is. Then look at your own costs and value add to make sure you’re not losing money.
9) Where should I form my business?
You want to make sure your location is a place that fits your product, clients, and the way you plan to operate. You might also look at the branding implications of forming in one place versus another.
10) Do I have to operate out of a building?
No, many businesses thrive from online platforms. Most businesses start with a website and a few social media platforms to get the word out and go from there expanding as customers come in.
11) How do I know I have what it takes to be a business owner?
There is not a specific formula in making a successful business or company. Characteristics that many business owners share is determination, passion, drive, and self-discipline, but is a long process but the trick to success is patience. It is not an overnight process.
12) How do I come up with a great name for my business?
This can be difficult and varies depending on your services, product, and location. The first step should be to brainstorm and second to research other competitors. Look at the sentiment you want to evoke or the call to action you want clients to take. Names should be something people can announce and don’t violate intellectual property rights of another.
13) What are the biggest challenges in starting a new nonprofit/for profit?
- Keep in mind, it usually takes twice as long to complete whatever you have set out to do.
- Accommodate for a shortage of funds, resources, and cash flow.
14) How do I minimize my risks as an employer?
With employees who are based out of the country, you have to make sure they have the proper work permit to work in the US. You have to make sure you have all of your taxes, paperwork, and documentation filed correctly and efficiently and that your business follows all county, federal, or state laws.
15) How much time, energy and resources are going to go into starting my business?
At the start, you should set limits and goals. You don’t want to overspend or overwork. Creating limits and having a business strategy is a great way to balance out dos and donts for this business.
Starting a business can be challenging but we are here to help you through it. Reach out to our office for an initial consultation to discuss any and all questions you may have.