Blog title "10 Things to Consider Before Starting a Business in 2024>"

Starting a business is a common dream, but it’s also a challenging journey that requires careful planning and preparation. The U.S. Bureau of Labor Statistics (BLS) reports that about 20% of small businesses fail within the first year, and by the fifth year, that number rises to about 50%. Recently, I’ve also observed and personally experienced reasons for these business failures, and in order to improve your chances of business success, I’ve decided to outline ten crucial things to consider before starting your business in 2024, especially if you’re working with limited resources.

1. Start Small, Dream Big

“You don’t need to have everything figured out from the start,” Sara Blakely. 

Starting small can be a great strategy for aspiring entrepreneurs. Sara Blakely, the founder of Spanx, advises self-made entrepreneurs not to feel pressured to have everything figured out from the start. Beginning with a small-scale operation allows you to test your business idea and build a customer base without incurring significant financial risk. For instance, if you’re passionate about baking, you could start by selling your products to friends and family or at local markets before expanding to a larger bakery operation. By focusing on providing value with a simple product or service, you can gradually grow your business and pursue your entrepreneurial dreams.

2. Know Your Market Without Breaking the Bank

I recently watched a video on Shark Tank where Daymond John, an entrepreneur and investor, mentioned the importance of understanding the market before investing money. This stuck with me because knowing your customers, their needs, and their willingness to pay is crucial for the success of your business.

Understanding your market doesn’t have to be expensive. Instead of hiring a market research firm, you can talk to potential customers directly. You can use social media polls, free online surveys, or simply chat with people in your community. These insights can help you tailor your offerings without spending a fortune. For example, many successful food truck owners started by asking local event attendees what kind of food they’d love to see in their area. You need to identify your target audience, understand your competition, and determine the demand for your product or service. Just like when Uber started, it tapped into a market that was frustrated with traditional taxi services and offered a more convenient and cost-effective solution.

 3. Choosing the Right Location

When starting a new business, selecting the right location is crucial for success, whether it’s a physical store or an online business. In today’s digital age, even online businesses need to consider their virtual “location carefully.” An expert in business consulting once emphasised that “Your business address, whether physical or online, is more than just an address; it’s part of your brand.” For example, the choice of a reliable and user-friendly e-commerce platform can significantly impact the customer’s shopping experience and the reputation of your business. 

Based on thorough market research, you should be able to identify potential buyers and their interests and challenges. So, the decisions you make should be informed by the insights gained from your research as well as your available funds, aiming to make the best decisions given the circumstances.

4. Bootstrap Your Funding

Some business owners are fortunate to have early access to investors or large loans. The thing is, many successful businesses start with minimal funding. Determine how much money you need to get started. Ask critical questions like “What do I have?” It could be using your personal savings, seeking help from friends and family, or considering crowdfunding to help keep the business running until it becomes profitable. Platforms like Kickstarter or GoFundMe can help you raise small amounts of money from people who believe in your idea. A great example is the game Exploding Kittens, which started as a Kickstarter project and raised over $8 million, well above its initial goal of $10,000.

Resources to help: 

5. Handle Legal Stuff on a Budget

Dealing with legal requirements for your business at the start can sometimes feel overwhelming and expensive. However, there are affordable ways to manage them. Like searching resources online that can guide you through registering your business name or setting up a sole proprietorship. Websites like LegalZoom offer low-cost services for basic legal needs. You can also check if your local small business association provides free or inexpensive legal advice.

The idea is that even before you pay for any legal documents, be a wise business owner by conversing with legal practitioners, informing them about the type of business you want to start, and letting them tell you the most cogent legal documents to get. They are best at providing you with wise legal options, so don’t just start a business without consulting or doing your own diligent legal research. 

6. Build an Online Presence for Free

In today’s world, having an online presence is essential, but you don’t need to hire a professional to get started. Social media platforms like Instagram, Facebook, and LinkedIn are free and powerful tools to showcase your business. Websites like Wix and WordPress offer free or low-cost website-building options. As Gary Vaynerchuk often says, “Content is king, but context is God.” So, start by creating valuable content that resonates with your audience, and you’ll begin to build a following

7. You Are the Team (For Now)

When you’re first starting out, you might not have the funds to hire a team, and that’s okay. Many successful entrepreneurs began by handling everything themselves, from marketing to bookkeeping. You can focus on what you’re good at and learn the basics of the rest through online tutorials and free resources. As Steve Jobs once said, “You have to be burning with an idea, or a problem, or a wrong that you want to right. If you’re not passionate enough from the start, you’ll never stick it out.”

Consider temporary options until you have the funds to hire a team; you can always look for people who are passionate and eager to learn on the job, offering them incentives to ensure their basic needs are met. It could even be done remotely or with an office presence a few times a week. These are just ideas to consider, as you’ll need help from a team in the long run. Just ensure that you hire individuals who share your vision and are skilled in their roles. Remember, “Great things in business are never done by one person; they’re done by a team of people.” Take time to build a team that complements your strengths and fills in the gaps where you lack expertise.

8. Keep Track of Every Penny

Having a clear understanding of your financials is critical, especially when you’re working with limited funds. This includes knowing your cash flow, managing expenses, and understanding profitability.  Use free tools like Google Sheets to track your income and expenses. Keeping a close eye on your cash flow will help you avoid unnecessary expenses and ensure you’re staying on budget. As Warren Buffett advises, “Do not save what is left after spending; instead, spend what is left after saving.” You should consider reading our blog post on Six Keys to Riches from Robert Kiyosaki’s ‘Rich Dad Poor Dad. 

9. Leverage Technology to Your Advantage

In 2024, technology can be your best friend. With the plethora of free tools and artificial intelligence available, you should take advantage of paid, free, or low-cost tools to automate tasks and manage your business. For example, you can use Canva to design marketing materials, QuickBooks for accounting, and Trello to manage projects. These tools can save you time and money, allowing you to focus on growing your business.

10. Stay Flexible and Ready to Pivot

One of the greatest advantages of running a small business is being able to adapt quickly. In 2024, the business landscape is constantly evolving, including market trends and customer preferences. Being flexible and ready to pivot when necessary can keep you ahead of the competition. As Eric Ries, the author of The Lean Startup, suggests, “Start small, ask questions, and learn what your customers really want. Be prepared to change course based on what you learn.“

In conclusion, starting a business is never easy. By keeping these ten considerations in mind, you will be better prepared to navigate the challenges ahead. Remember, you don’t need to have everything figured out from day one. Start small, learn as you go, and stay determined.