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4 Crucial Resources Needed to Start a Small Business

Triumph Business Capital

June 10, 2019

Starting your own small business requires dedication, planning and resources. You might be committed to starting your own company. You have a business idea, and you can’t wait to act on it. But what do you need to start a small business and turn it into a success? 

How do I start a small business?

Here are four resources needed to start a small business and keep it going year after year.

Business Resource #1: Capital  

The first basic business resource is simple—you need money to start your business and keep it afloat. There are costs associated with building your company from the ground up, including things like: 

  • Rent 
  • Office supplies 
  • Raw materials 
  • Employee wages 
  • License and permit fees 

You don’t want to run out of money and give up on your business idea, and yet that’s what happens to many entrepreneurs. Sixty percent of failed businesses said they closed their doors mainly from cash flow problems. To avoid becoming a part of this statistic, you need capital to cover your operating expenses until your business becomes profitable, at which point, ideally, your business will be self-sustaining.    You have multiple options to get the money you need. One option is to dip into your personal savings or seek help from family and friends. If that’s not an option, however, you’ll need to explore other resources. For example, you could apply for a loan or line of credit, but most lenders require an established credit history, something that new businesses don’t have.In this case, small business factoring is a perfectly suitable option for businesses. Numerous small business factoring companies, also known as invoice factoring companies, are eager to provide you with the money you need for immediate operating expenses. When it comes to capital, every small business has different needs, so don’t be afraid to carefully weigh all your financing options.  

Business Resource #2: A Dependable Team 

You might be tempted to go it alone, but if you want to get your company off the ground, you’ll need a team to back you up. Recruiting a team of motivated people who share your values will free you up to focus on scaling your business. That’s why a dependable team is a basic business resource no entrepreneur can do without.  Having a team will help you focus on the big picture while ensuring you have the help you need to deal with daily responsibilities. Keep in mind that you don’t need to hire all the help you need. Outsourcing can be an option as well, especially when you start a small business. The key is to seek out people who have the skills, experience and passion to help you bring your vision to life.  As you build your team, keep an open mind and use multiple resources. You can find potential employees and contractors through employment search engines, social media, staffing agencies and university career centers. Be sure to post your available jobs on job boards and on your website.    Casting a wide net ensures you’ll be able to choose from a diverse pool of candidates and select people who exceed your expectations. And remember, you can always hire a recruiter to take this task off your shoulders.  

Business Resource #3: A Suitable Workspace 

It’s common for entrepreneurs to run start-up businesses out of their homes. If that’s what you’re doing, the third business resource you should consider is a designated workspace. Whether you need an office or a store, it’s important to purchase or rent a separate space that’ll create a positive first impression.   Virtual offices have their benefits, but clients, customers, and even future employees look for legitimacy in small businesses. A physical location shows that you’ve invested in your business for the long haul. It can also help you achieve your business goals by bringing your team together under one roof.   When you’re searching for a space, don’t forget to consider the potential for expansion—your company will need ample room to grow. Your team will thrive in a clean, comfortable and safe setting where they can operate at their best. With a physical location, you’ll probably notice improved accountability, collaboration and productivity among your team members.   An exciting office or store can also be an excellent recruitment tool. People want to work in attractive, inspiring spaces where they can feel proud of what they do. So, if you haven’t already, think about investing in a defined company workspace. 

Business Resource #4: Know-How  

The truth is, an idea isn’t enough to make your business succeed—you need a plan backed by thorough research. Education should be central to your company, and new business owners can always benefit from learning more about their competition, audience, industry and product or service development.   Professional development is very important too, as great leadership is crucial to any growing business. Ongoing education will give you the knowledge and training you need to make your business a success. Here are some ways to brush up on your business knowledge: 

  • Read books and publications that are relevant to your business and follow online publications and websites. Others in your field are sharing their expertise, and you can benefit from their experiences and knowledge. 
  • Attend classes, conferences, retreats and seminars whenever it’s feasible. They can provide fascinating insights into new business trends and training to help you grow your company. 
  • Look into organizations such as the Small Business Administration, the National Federation for Independent Businesses (NFIB), SCORE and the U.S. Chamber of Commerce. These associations provide mentoring for new and established small business owners. 
  • Ask your mentors or industry experts you admire for business advice. They can help you identify areas that need improvement and offer possible solutions. Additionally, professionals with decades of experience under their belts can tell you about mistakes they’ve made in the past, so you can avoid them as you grow your company.  

When small business owners reference books and seek help from mentors and other successful people in their industries, they can feel better prepared to run their businesses. 

Preparation is the Key to Success  

Starting a small business company is all about preparation. The four resources we’ve listed here represent the tools and assistance you need to turn your start-up from idea to reality. 

Invoice factoring for startups infographic