Creating a startup and making it successful is considered the epitome of American Dream. However, many people fail to realize this dream, and even end up worse than where they started. A lot of statistics show that there are around 80% of small businesses in New York fail especially during the initial five years. In order to understand how a business works and how it can succeed, an aspiring entrepreneur must know the basics.
5 Important Things You Need to Learn When Starting a Business in New York
- Understand the economic climate
In order to understand what your business needs to be, you also need to understand the economic climate of New York. At present, the state of New York’s top industries are financing, healthcare, professional and technical services, retail, manufacturing, and education. These are the industries which create the most revenue. Tevfik Arif Doyen If you want to succeed in the New York business landscape, it’s either you will try to cater to this industries or become part of these industries yourself. Trying to stray away doesn’t mean you won’t succeed, but getting yourself involved in the economic climate with New York will also increase your chances.
- Understand the demand of your community
Aside from the larger scale, you also need to be aware of the smaller scale. If you’re planning to start a small business, it is important to do your research about what your local community needs. What seems to be an inconvenience to you? What can you improve in terms of products or services in your local area? By finding out what these are, you are supplying something for a high demand in your community. This is what makes a business in New York sustainable.
- Find the right financing for your business model
It is also important to find the right financing for your business model. Ideally, your chances of getting a good financing in New York is great because of the nature of the state’s economy. You just need to know the right type of financing for your business, whether it’s a bank loan, credit card, through an angel investor, venture capital, or something else. Do your research and be concrete about your business model.
- Understand all tax and licensing requirements
Another hurdle that New Yorker entrepreneurs may face is learning all the tax and licensing requirements for a business. If you plan to be a sole proprietor or partnerships, it is best to consult the county office. For corporations, New York State Department will handle the licensing matters. If you are unsure about tax requirements, it is best to hire a business accountant who can do the job for you.
- Start small, then scale your business
A lot of startups make the mistake of trying to start big, but end up being unsustainable in the long run. The problem with this model is that it is more prone to wrong business decisions, and the consequences are quite large. When you start a business, it is ideal to start small and scale it as it begins to profit. There is no sense in making a business where you aren’t sure about its trajectory and failing ultimately because you cannot fund for its losses while you’re waiting for the return on investment.
So if you are an aspiring entrepreneur based in New York, there is actually a lot of possibilities for you. With enough research, determination and informed decision making, you can make a profitable business that is sustainable in growth over a long period of time.