You might be fascinated by an idea, but it’s not easy to launch a business and reap profits—especially not right away. According to Forbes, 8 out of 10 businesses fail within the first 18 months. Why? Because they run out of cash. And even if you are successful, you likely won’t see profits for 5 years
1. Conduct market research
Whatever your exciting new business prospect is, don’t get swayed by mere possibility.
2. Figure out the start-up cost
While your initial market research will give you a general sense of start-up costs, now is the time to dig into the numbers. Some estimates show that the cost of launching a business can reach $30,000, so make sure you take all factors into account.
3. Start an LLC
Once you’ve determined the viability of your business and product/service, start an LLC. You’ll have to submit articles of organization to your state’s Secretary of State. Usually, this costs between $40 and $900.
4. Save for your living expenses
Now that you’ve got some solid numbers, start saving. Along with the expenses associated with setting up and operating a new business, you need to be financially prepared to cover your living expenses for several months.
5. Boost your credit score
Before you dive into funding, you need to make sure your personal credit is solid. Why? That’s how banks and potential investors know you are a solid bet for a loan.
People who should listen to this show are entrepreneurs, career coaches
