So you've decided to start your own business - congratulations! It's a huge leap from letting someone else take care of taxes, accounting, payroll, inventory, and/or a myriad of other activities necessary to run a business. However, running your own business has its advantages, too. You get to be your own boss, set your own hours and days to work, and are responsible for your own success. It can be a great way to free yourself from the tedium of 9-5 and work at doing what you love, but you have to begin by asking a few questions:
1. Are you doing what you love, or just doing something you're good at? A desire to get away from the regular working world can be a good motivation to work for yourself, but you have to be excited to get up in the morning to do what it is you have chosen to do for a living.
2. What is it you are planning to do? What niche is it going to fill? Is there a need for what you can provide? Will the market bear another entry?
3. What technical skills or talents do you have? Just being able to do something may not be marketable enough to convince customers or financiers that you are a good financial investment.
4. Who are your competitors in your chosen profession and how are you going to do it better? Why should customers come to you? What do you have to offer that no one else does?
Once you are satisfied with the answers to these questions, it is time for the decision of what kind of business structure you will use. Will you be a sole proprietor, responsible for every facet and the penultimate authority as to how to run the business? Will you enter in with a partner, the better to share the cost and workload, but also the profits and the business decisions? Perhaps the decision will be made to incorporate, with its financial safeguards but more complex and costly structure? At this stage, legal advice is recommended, if only so that you fully understand the advantages and disadvantages of your chosen structuring plan. Many lawyers will provide a free or reduced-rate primary consultation, though often not more than an hour. When the structure is finalized, a name for the business should be decided upon, if not already having been done so in advance. It should be easy to remember, avoid initials and single letters (B & L & R, Inc. will be difficult to remember for customers) and try to say something about the business (Bob's House of Hobbies is easier to remember and spell).
Next, a business plan is a vital step in laying out all these topics and proposals in a standardized format. A good business plan serves as a formal statement of the new company's goals, financing, structure and legal considerations. It acts as a ?resume? to prospective investors and is the primary documentation they will use to evaluate whether or not your business will be worth investing into. It also provides the proprietor(s) with a chance to see the workings of the new business in black and white. A basic business plan should at the least contain a balance sheet, income statement and statement of cash flow, as well as a proposed financial budget for the first year, or as long a period as necessary if a year is impractical.
So with these quick tips, plan for success, and good luck in your chosen endeavor!
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Since you have become a small business person whether you are the Massage therapist or Sheepshearer, there is really a lot more pressure on you to be organized, not less. While a certain amount of spontaneity is beneficial and expected of small business, some structure and planning is needed if you will attempt to compete with what bigger corporations offer. You should really visualize the scope of your business and write it down. This can give you a significant idea of what your obstacles are, your current status, what your 10 year plan is, and how close you are to realizing them.
The most important thing is to remember to get every detail down on paper. This gives you a starting point, and something definite to alter if things need to be changed later on. The planning document can guarantee that you, your employees, and your investors are all together in their thinking.
The initial step in your business plan is a description of your business. This includes what you do, what services you provide and what products you will produce. In a word, this will verbalize the scope of your business. While this can be enlarged later, you'll realize that writing down of your limits and terms is incredibly helpful for future development. This is also a good spot to include what kind of end game you have. While they can be general goals that you want to stick to, you should follow it up with some rough gross and net income figures that you are want to achieve.
The next part of your small business plan should consider the market, both where it stands and where you will fit in. Why do people need your service and how will your business or service will change the market? How are you going to get some buzz going about your services and will you have different types of customers that will be affected by various parts of your business? This part of your business plan essentially "proves" your business has a right to exist and gives evidence for why it should be something to put your time and energy into, so take some extra time here.
Financial capitol is going to be the next thing that you tackle. Include general expenses, contingency fees, licensing fees if necessary and anything else you can think of that will make you put out money. Because virtually all bankers will want to study your business plan primarily for this area, this is of utmost importance for you to work on. If you are a bit new to this, look at small business plans from similar successful businesses to see the best way to do this. Put down an accurate view of your current business status, but don't forget to look to the future.
For the final step, think about management. Who is running things, and what are their responsibilities? This is a prime method to maintain your organization and verbalize responsibilities. Like any other part of the plan, this section can be altered, but the important thing to do is to have it there in the first place.
Take some time to be confident that your business plan is up to snuff, and you will discover that your business will start becoming profitable much faster.
Both Williamking & Thomas Griffin are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
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