“It’s never a bad time to start a business – as long as you’re not going to start a mediocre business.” – Gary Vaynerchuk
Gary has a solid point – building a business in a rollercoaster economy can be difficult, but there is always a need for businesses that are remarkable. However, commodity businesses such as mom and pop shops on the side of the road may have tougher going in rough times – but if your business has something worth selling and a unique value proposition, you can succeed – and thrive, as a business.
But you know that – you’ve started your business, right? Now what? Besides the nuts and bolts of execution, there comes new concepts that you should think about when progressing forward, and move on them when necessary.
Will you get an office? How large? Many companies, especially on the internet, start from the homes of the entrepreneur who builds something out of nothing. But when new employees start getting hired, there’s a need to bring them together to grow continuity and also make the team more effective. When looking for an office, you should consider several variables – how often do you plan on being there? Is the location a selling point for new hires, or a hindrance? How many people can it support? Often times going with a co-working space as a going medium is a good next step.
For physical retail, there is frequently no choice but to get a place of operation – but it is important, for marketing purposes, to truly weigh where it will be located. Is it a high traffic spot? Is there a market for your services? All of these things should be considered.
Should you offer benefits? Which ones? The cost of employees as compared to contractors, even full time, can be considerable. A good thing to think about as the “cost of an employee” who is full time, with benefits, sunk costs of an office and new equipment, and etc is about 30% of the annual salary. 30%! But benefits can be a huge boost in the minds of some people – so consider accordingly. Who will your employees be? If they’re all young men without families, they might not even consider health insurance a large benefit. If so, it may make more sense to proceed with higher salaries in a contract role – it will simply be more attractive.
If your typical employee is aged 30-50 with kids and a family to support, full benefits are wildly attractive to the hire, so you should lean towards offering that in comparison to higher salary in a contract role.
Proceed With Caution – But Not Too Much
Congrats, you’ve started a business! These are just a few suggestions of things to think about as you move forward. Remember, though, that in the beginning, these details aren’t too important – being profitable is. These things will begin working themselves out, or will force themselves too. If your business simply isn’t good enough to make money, whether or not you offer benefits simply won’t matter.