How to Start Your Business
Starting and managing a business takes motivation, desire and talent.
It also takes research and planning.
Like a chess game, success in small business starts with decisive
and correct opening moves. And although initial mistakes are not
fatal, it takes skill, discipline and hard work to regain the advantage.
To increase your chance for success, take the time up front to explore
and evaluate your business and personal goals. Then use this information
to build a comprehensive and well-thought-out business plan that
will help you reach these goals.
The process of developing a business plan will help you think through
some important issues that you may not have considered yet. Your
plan will become a valuable tool as you set out to raise money for
your business. It should also provide milestones to gauge your success.
Is Entrepreneurship For You?
In business, there are no guarantees. There is simply no way to
eliminate all the risks associated with starting a small business
- but you
can improve your chances of success with good planning, preparation,
and insight. Start by evaluating your strengths and weaknesses
as a potential owner and manager of a small business. Carefully
consider each of the following questions.
Are you a self-starter? It will be entirely up to you to develop
projects, organize your time, and follow through on details.
How well do you get along with different personalities? Business
owners need to develop working relationships with a variety
of people including customers, vendors, staff, bankers,
and professionals
such
as lawyers, accountants or consultants. Can you deal with
a demanding client, an unreliable vendor, or a cranky receptionist
if your
business interests demand it?
How good are you at making decisions? Small business owners
are required to make decisions constantly - often quickly,
independently,
and
under pressure.
Do you have the physical and emotional stamina to run
a business? Business ownership can be exciting, but
it's also a lot of
work. It's often said that entrepreneurs work only
half-time: 12 hours a day. Can you face six or seven 12-hour workdays
every week?
How well do you plan and organize? Research indicates
that poor planning is responsible for most
business failures. Good organization
of financials,
inventory, schedules, and production can help
you avoid many pitfalls.
Is your drive strong enough? Running a business
can wear you down emotionally. Some business
owners burn
out quickly
from
having
to carry all the responsibility for the
success of their business on
their own shoulders. Strong motivation
will help you survive slowdowns and periods of burnout.
How will the
business affect your family? The first few years of business startup
can
be hard on family
life.
It's important
for
family members to know what to expect
and for you to be able to trust that
they will support you during this time.
There also may be financial difficulties until
the business
becomes profitable, which could
take months or years. You may even
have to adjust to a lower standard
of living
or put family assets at risk in the
short-term.
Frequently Asked Questions from the Small Business Administration
What Kind of Business Do You Want to Start?
Before starting out, list your reasons for wanting to go into business.
Some of the most common reasons for starting a business are:
- You want to be your own boss.
- You want financial independence.
- You want creative freedom.
- You want to fully use your skills and
knowledge.
Next you need to determine what business is "right for you." Ask
yourself these questions:
- What do I like to do with my time?
- What technical skills have I
learned or developed?
- What do others say I am good at?
- Will I have the support of my
family?
- How much time do I have to run a successful business?
- Do I have
any hobbies or interests that are marketable?
Then you should identify the niche your business will fill. Conduct
the necessary research to answer these questions:
The final step before developing your plan is the pre-business checklist.
You should answer these questions:
Your answers will help you create a focused, well-researched business
plan. that should serve as a blueprint. It should detail how the
business will be operated, managed and capitalized.
The sample business plan can serve as a
guide, but you should adapt it to your specific business. We recommend
that you break down the plan into several components. This allows
you to work on several sections at a time.
(from the United States Small Business Administration)
How to Start Your Business
How to Expand Your Business
What Kind of Records
Should I Keep?
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