Hey Taylor, I’m on the verge of breaking off to start my own construction company. I’ve never done anything this big before and I’m wondering if you have any advice to keep me from getting cold feet. - Andrew
Hey Andrew, Sounds like a big, exciting step for you. Starting a business, as I’m sure you know, is a pretty massive undertaking. Since you can’t predict exactly how it will go, my main advice is to prepare for everything.
Seriously. Because you’ll encounter so many twists and turns in the early going, it’s impossible to overprepare. To get you started, here are a few things to think about.
1. Market niche. Since you currently work for a construction company, you have a pretty good idea of what some of the competition offers. When you have your own business, what will set you apart? You don’t have to do anything extravagant to become recognizable, but you need to think about this question so you can have an answer ready when people ask why yours is the company to go with. Price? Results? Variety? Speed? You haven’t started yet so you don’t necessarily have the answers, but you’ll want to get them as soon as possible.
2. Initial costs. When people start new companies, it’s the future dollar signs that serve as motivation. While thinking about the money you’ll eventually make, don’t lose sight of what you have to spend up front to make it all happen. If you’re truly on the verge of starting this business, you should have a budget ready to go that includes every type of fee that might sneak up on your bank account. You may start getting overwhelmed, but you need to go through the process and put serious thought into how costs will get covered if you want to survive the first year.
3. Advertising. You probably have clients that will come with you when the doors open initially. Then what? Don’t go crazy and start paying for newspaper and radio ads before you have a chance to get things established, but don’t let marketing go unaddressed. Word of mouth can get you so far, and might even help you cover all the bills. Eventually, you’ll want to use marketing as a way to establish and promote your brand so you can reel in the types of clients you prefer to work with.
Take your time, plan for everything, and you won’t have to worry about getting cold feet. Good luck!
Disclosure: Information presented is for educational purposes only and is not an offer or solicitation for the sale or purchase of any specific securities, investments, or investment strategies. Investments involve risk and, unless otherwise stated, are not guaranteed. Be sure to first consult with a qualified financial adviser and/or tax professional before implementing any strategy discussed herein. To submit a question to be answered in this column, please send it via email to Question@GoFarWithKovar.com, or via USPS to Taylor Kovar, 415 S 1st St, Suite 300, Lufkin, TX 75901.
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