An entrepreneur plotting out a business launch has a lot to consider: staffing, location, supplies and distribution, to name a few of the big-ticket items. And there’s a lot more where that came from. Here are a few areas that make for wise investments as a small business gets off the ground.
Technical expertise.
Just about every small business with any form of modern technology will have to have tech support. Whether this help comes from an employee on staff or from outside the building, an IT expert will help immensely down the line, as Sujan Patel writes for entrepreneur.com.
“As a founder, tech may not be your thing,” writes Patel. “Even if it is, you may still want to outsource some (or all) of your in-house technological needs. Keep what you’re good at and passionate about, but outsource the parts of your technology that you need to run on autopilot so that you can tackle bigger priorities. The hours you’d spend doing server maintenance and building your own website are better invested in your core competencies. Having your technology run smoothly is essential to business success. As a result, it’s worth the money to pay for great technical support.”
Legal advice.
A prospective entrepreneur might be overwhelmed by the paperwork and legal matters required to get a business going. Bringing in some hired help will likely be worth the expense. Sherrie Scott writes about this for Demand Media.
“Small businesses are subject to several regulations on a local and federal level,” writes Scott says. “In addition, small business owners are obligated to consider how their business practices affect customers, employees and others within their community. It is necessary for business owners to consult with legal counsel or at least become familiar with the legal issues that can have a profound effect on the success of company operations.”
Market research.
Proper analysis of a potential audience and target demographics will take some time, but it will give an entrepreneur a leg up upon launch. It will also benefit any marketing strategies from the start, and potentially eliminate early missteps. Kimberly Crossland writes about this for smallbusinessbonfire.com.
“One of the biggest mistakes small businesses make is marketing to a vaguely defined audience without a clear marketing plan,” writes Crossland. “Vague definitions of a demographic lead to weak marketing. When you invest your marketing dollars and only use feeble marketing language and tactics, you lose. By investing in getting to know your target market inside and out, you can craft powerful messages that resonate with your demographic. Invest the time and money into truly finding out who it is that your product helps, and you will have the tools you need to strengthen your marketing.”
Accounting.
Here’s another area that is best left to the professionals. Anyone that has taken an accounting course knows how complicated it can get, and how easy it is to fall behind in record-keeping and especially in tax preparation.
As Patel writes in his entrepreneur.com story, “… suffice it to say that Uncle Sam wants his portion of the pie. It can be very hard to set aside the necessary money for your taxes, and even more confusing to identify all of your valid tax deductions. Don’t throw money down the drain, and don’t anger the IRS — spend some cash on a good accountant. Most accountants will be able to meet with you by the hour to give you advice on deductions and documentation. Then they’ll charge a fee each year to complete and file your taxes. It’s that simple, and it’s worth it.”
