How to start a Laboratory Business
Certainly business is work. Real time work! Business can also be fun. Business can make you laugh, and it can make you cry. Business can go seamless, it can also be very frustrating. Been into business for a few years, I have written this blog to help you get started.
As a new business owner, if your business will be successful, you will need to:
1. Identify your reason:
That is, why you want to own a business. Some reasons include:
- Freedom from the daily 8 – 5 work routine.
- Being your own boss.
- Doing what you want, when you want to do it.
- Improving your standard of living.
- Boredom with your present job.
- Having a product or service for which you feel there is demand for.
Whilst some reasons are better than others, be aware that there are trade offs for every reason.
2. Take the analysis below
A. Preliminary Analysis (Major flaws)
A YES answer to any of the following questions will indicate that your business has slim chances of success.
- Are there any causes that make any of the required factors of operation unavailable? Such cause may include unreasonable cost or scare skills.
- Are capital requirements for commencement or continuing operations excessive? Capitals do not only mean money.
- Is adequate financing hard to obtain?
- Are there factors that prevent effective marketing?
B. SELF ANALYSIS
Starting a business requires certain personal characteristics such as:
- Are you aware that running your own business may require working 12 – 16 hours a day, 6 days a week, Sundays and even holidays?
- Do you have the physical stamina to handle the workload and schedule?
- Do you have the emotional strength to withstand the strain?
- Are you prepared if needed to temporarily lower your standard of living, until your business is firmly established?
- Is your family aware and prepared to go along with the strains that they too must bear?
- Are you prepared to lose your investment in case your plan fails?
3. FIND A NICHE
Business services ranges from an corporation to a lone window washer. Obviously the knowledge and skills for these two extremes are far apart but one thing is common which is that each has found a business niche and is filling it.
To fund your niche, the following exercise will help.
A. Identify and briefly describe the business you plan to start.
To do so, a YES is required to these questions:
- Does your product or service satisfy an unfilled need?
- Will your product or service serve an existing market in which demand exceeds supply?
- Will your product or service be competitive based on its quality, selection, price or location?
B. Know the market before investing your time, energy and financial resources.
A no to these questions indicates a weak plan
- Do you know who your customers will be?
- Do you understand their needs and desires?
- Do you know where they live and how to reach them?
- Would you be offering the kind of products or services that they will buy?
- Will your prices be competitive in quality and value?
- Will your promotional programs (such as advertising) be effective
- Do you understand how your business compares, with your competitors?
- Will your business be comfortably located for the people you plan to serve?
- Will there be adequate parking facilities for the number of people you plan to serve?
4. PLANNING YOUR START UP
The following questions will help you prepare for your opening day.
A. Name and Legal structure
- Have you chosen a name for your business?
- Have you chosen to operate as sole proprietorship, partnership, or corporation?
B. Business Premises and Location
- Have you found a suitable building in a location comfortable for your customers?
- Can the building be modified for your needs at a reasonable cost?
- Will you have a lawyer check the zoning (area) regulations and lease?
C. Merchandise How to start a Laboratory Business
- Have you decided what items you will sell or produce or service you will provide?
- Have you made an estimated cost of the amount of inventory you will need to begin?
- Have you found reliable suppliers to help you with the start up? you should try us out 🙂
- Have you compared the prices, quality and credit terms of suppliers?
D. Business Records
- Are you prepared to maintain complete records of sales, income and expenses, account payable and receivables?
- Have you determined how to handle payroll records, tax reports and payments?
- Do you know what financial reports should be prepared and how to prepare them?
E. Finances.
Insufficient funds can crash your business. Review the questions below to clear this problem.
- How much money do you have?
- How much money do you need to start your business?
- How much money will you need to stay in business?
If you are considering a retail business, you may need to take into account the following list of items containing basic start up costs
- Construction cost
- Decorating and remodeling
- Fixtures and equipment
- Installing fixtures and equipment
- Services and supplies
- Beginning inventory cost
- Legal
- Professional fees
- Licenses and permits
- Telephone utility
- Insurance
- Advertising for opening
- Unanticipated expenses
5. STARTING OUT
Having done 1 – 4 above, you are set to begin your business. The following costs are unavoidable and must be budgeted for. How to start a Laboratory Business
- Your living cost
- Employee wages
- Rent
- Advertising
- Supplies
- Utilities
- Insurance
- Taxes
- Maintenance
- Delivery
- Transportation
- Miscellaneous
Write out your estimated cost for each and sum them up. Then multiply by three. This is the amount of cash you will need to cover operating expenses for your first three months. Deposit this amount in a savings account before opening your business. Use it only for the purpose listed in the above list because this money will ensure that you will be able to continue in business during the crucial early stages.
QUESTION: HOW DO I KNOW HOW MUCH I NEED TO START?
It’s simple! Add up the total start-up costs to the total expenses for three months. The figure is what you’ll need to start and operate your business for your first three months.
6. AFTER STARTUP
The primary source of revenue in your business will be from sales. Your sales will vary from month to months due to certain conditions and influences including season. You must determine if your monthly sales will generate enough income to pay each month’s bill. To do this, set up your cash flow projection using the sales records from your first three months. How to start a Laboratory Business
Make sure to avoid the following
- Taking out excessive cash from the business for living expenses.
- Too rapid expansion
- Too many credits to customers.
If you answered all the questions in this article, you have carefully thought about your goal. You may feel the need to wait for the best time. I felt that too, and every time I plan a new business, I still do. But there really isn’t ever a better time than now. So start today!
References and Credits
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