Before You Start a Business
Maybe you dream of starting your own business, being your own boss. Perhaps you had a tough week, and you're thinking that life and work and making money don't have to be so hard.
It's easy to see a late-night infomercial and believe success in a small business is almost guaranteed if you buy the right package.
There are thousands of successful small businesses in the US, but there are many more startups which failed, draining savings and hopes at the same time. So what can you do to succeed in your own small business?
One - do market research. Perhaps your idea is exciting to you, but would it be exciting to potential customers? Clarify the product you are wanting to sell and do research. Is anyone else doing it? If so, how are they doing it? Is there something unique you can bring to the market? Be sure you do all the fact finding you can before taking the next step. Don't be too easy on yourself. You may love your product, but does anyone else?
Two - get advice. Do you have a friend who has succeeded in starting and running a small business? If you could have a lunch and get some feedback, that would indeed be a good investment. Often would-be entrepreneurs are afraid to bring their ideas into the light for fear of being exposed for poor financial decisions.
Three - count the costs. Do you have enough cash? What are the startup costs? How long would it take to make your first sale, and how long to break even? How many hours would it take to get the business going, and what would be your pay per hour? Be critical here, because many aspiring entrepreneurs put expenses on credit cards, and if the business doesn't work, then they still have to pay off the debt.
Four - keep the rules. Make sure you are legal in your city and state. Do you have zoning laws to comply with? What special business licensing or registation is required? There are many resources available locally to help you stay compliant, and don't rush past these in a hurry to get your business started. It's best to do it right from the beginning.
Five - get the word out. What is your marketing strategy? Do you have a plan? What is your marketing budget and how will you track results? There may be free or low-cost things you can do to promote a business, but have a plan on how you will get past the noise and stand out to your potential customers.
In summary, spend some time planning. It's good to be excited, and you'll need enthusiasm to do well. But don't hesitate to get professional guidance, or ask a mentor, or get honest feedback from a close friend who will tell you the truth about yourself as an entrepreneur and also about your plan. A bit of hard thinking and maybe hard listening in the beginning will more than pay off in the end.
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Disclaimer: The views expressed on this website reflect the personal opinions and experiences of the writer. Nothing in this article constitutes financial advice in any way. Information on this website should not be relied upon for investment or business advice. Please consult with a qualified financial professional before making any financial decisions. 3805055