Small Business Startup
Basics
Starting and managing a
business takes motivation and talent. It also takes research
and planning. Although initial mistakes are not always fatal, it
takes extra skill, discipline, and hard work to regain the
advantage. Take time beforehand to explore and evaluate your
business and personal goals, then use this information to build a
comprehensive and thoughtful business plan that will help
you reach these goals.
Developing a business plan will force you to think through
some important issues that you may not otherwise consider. Your
plan will become a valuable tool as you set out to raise money for
your business, and it will provide milestones to gauge your
success.
Getting Started In Business
1: List your reasons for wanting
to go into business. Some of the most common reasons for starting
a business are:
- Self-management
- Financial independence
- Creative freedom
- Full use of personal skills
and knowledge
2: Next 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?
3: Identify your business niche.
Research and answer these questions:
- What business am I interested
in starting?
- What services or products will
I sell?
- Is my idea practical, and will
it fill a need?
- What is my competition?
- What is my business's
advantage over existing firms?
- Can I deliver a better quality
service?
- Can I create a demand for my
business?
4: The final step before
developing your plan is the pre-business checklist. You should
answer these questions:
- What skills and experience do
I bring to the business?
- What legal structure will I
use?
- How will my company's business
records be maintained?
- What insurance coverage will
be needed?
- What equipment or supplies
will I need?
- How will I compensate myself?
- What are my resources?
- What financing will I need?
- Where will my business be
located?
- What will I name my business?
Your answers will help you create
a focused, well-researched business plan that will serve as a
blueprint for business operations, management, and capitalization.
SBA offers a tutorial on preparing a solid plan.
Once you have completed your
business plan, review it with a friend or business associate. When
you feel comfortable with the content and structure, review and
discuss it with your banker. The business plan is a flexible
document that should change as your business grows.
