Thursday, December 18, 2008

How to Start Your Own small Business

  1. Start with good idea. This does not have to be a brand new invention. Many successful small businesses have found a way to improve on an existing service more efficiently or economically.Make sure you do a lot of research I mean a lot you should spend a good chunk of time before you even think about doing this on just doing research. Look at your idea from all different perspectives. Why is your idea better than everyone else's? Do i have the money or resources to make this happen. Is this something I will enjoy?
  2. Put together a business plan. This doesn't require hundreds of pages Use the plan to research things like how much you can charge for your product or service, how much it will cost to produce or deliver, and the size of your customer base. This plan should cover your competitors - how many there are , how popular they are,what strategies you will use to compete with them. The plan should cover what obstacles to entry such as high fixed costs, and government regulations that must be met.
  3. Determine the amount of financing. Your business plan must include a section on financing. How will you pay the costs to start and run your business? Even if your business is twenty times better than any of your competitors. It will take time to get your business known, u might lose money before ever making money so plan accordingly. Do you need a bank loan? should you use your credit cards? Or should you finance this venture from your own savings? Is there government grants available in your state that may ease the costs of start up? There are many government grants for small businesses in place for many reasons like creating more jobs in your town. So it is always a good idea to research your local state office. Also, you'll need to consider how much salary you need to support yourself while building your business.
  4. Put together your marketing plan. For some ventures it may cost little to nothing, but you must judge this very carefully. For everyday you are in business if you are not selling you are losing money. Ill go through a couple examples. Lets say you start your own law firm and you were a lawyer before hand and all your family members are lawyers. You may not have to spend much money to market your business because people already know you. Now lets say you decide to open up an ice cream shop no one knows you. You mite have to run some adverts to let people know that "hey I'm here and this is why I'm the best".
  5. Budget Budget Budget!Make sure you keep a very good record of your losses and your gains. Don't get scared in the beginning if your losing money. This is normal many small businesses will lose money before they make money. Never give up just because your losing money in the beginning. This does not mean your idea was bad somethings just take time. There are stories upon stories of very successful businesses now that went threw very hard times in the beginning.
  6. Always know your next step Always know what you gotta do next. Always have a back up plan if something fails. Ill use an example. An Olympic skier is plummeting down a Hill at 100 mph what do you think is going through is head? He or she is thinking if i don't make this turn right i will crash into those trees and die. So what does he do he plans ahead hes always looking for an alternative plan. And he is doing it CONSTANTLY! He might have 2 or 3 plans at once and he is constantly updating these plans in his mind just in case something goes wrong his LIFE depends on it. This is how you have to train your mind to think. Always be thinking whats next and always have a back up.
  7. Know if business is right for you? Now you don't have to be business savvy. You don't have to be some kind of genius. But you have to enjoy a challenge because there will be many. But most likely if you have gone this far you will be alright.
  8. Have fun! Money is good everyone needs money.But don't let the thought of becoming rich overwhelm you. Remember you live life only once. Remember why you started this most likely it was because you hated your job. So make sure to have a little fun from time to time!
  9. Always have a nest egg Always have a decent size of money saved in the bank for those unknown emergency that arise. Because there will be many and you don't wanna caught off gourd.
  10. Be organized keep good records I cannot stress this enough! Be organized this is probably one of the most important things when owning Ur own business. Also keep very good and up to date books. If you decide you need to take on a business partner or go for a loan 3 years into this venture and you have no records of how your business has been performing. It wont happen! No bank or business partner will give u money, if they don't know how your business has been performing over the last 3 years or however long. KEEP GOOD BOOKS AND BE ORGANIZED. I know its boring but it has to be done!
Final step for today and it is an important one!

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