You've decided to start a business by turning your hobby into a money-making venture. Before you launch your business, There are a few things you may want to explore before quitting your brick and mortar job.
The following 5 things are common items many entrepreneurs overlook. Exploring the following could save you headaches and possibly legal issues later on.
1. Check licensing laws for any permits or licenses needed with your chosen product or service. For example, anything food-related may require health inspections before selling any goods. A delivery service may require special liability insurance if you use your vehicle rather than a business car.
2. If you live in a community with an HOA, check the HOA by-laws and rules if your business will be home-based. The HOA rules may prohibit running a business from your home and potentially carry fines for violating HOA rules.
3. Have you figured costs for delivery or shipping? These expenses can turn customers away if the costs are too high. If you offer free delivery, be prepared to have these costs reduce your profits by a substantial amount.
4. Will you need to carry an inventory of products or supplies? Locating convenient and appropriate storage after the fact could be difficult and expensive. This potential issue should be resolved before you begin.
5. Have you determined how you will sustain your current standard of living before your company supports itself? Having enough capital available to carry you through the start-up pangs is vitally important. If you put all your funds into starting your business but cannot pay your household expenses, you will have created a situation that you may not recover from. Many new business owners keep their regular job and work the business part-time to start, eventually building a strong customer base and steady income stream.
Operating your own business is an exciting adventure with unlimited rewards.