What kind of business do you want to start? Thinking of business ideas is an inherent part of starting a business. For example, you need to think of a business that you find interesting, which will therefore motivate you further. Or, you could check out the business ideas others have thought of, and adapt one you find interesting, making it different from other businesses.
Some of the most valuable skills involved in setting up and running a business is being able to disperse the risk, extend the span of life of a product or service, promote growth, and adjust to an evolving marketplace.
Make a business plan
In fact, before breaking away from your current employment, you will require a number of different plans such as a business plan, a plan for relocation, a plan for acquiring the resources and training you will require. However, your business plan will be the core of the matter. Setting up a business without a plan is akin to driving through an unknown country without a map. Without a business plan, you will have no idea where you are heading for and whether the path you have taken is the right one.
Business plans focus on various essential areas like: what your business is about, what or who your market is, how you will go about getting the funding, what the sources and projections of your income will be, where you will be located and why, and how you will go about marketing your product or services.
Get a handle on the logistics
Select the location of your office carefully. If you are going to have foot traffic, ensure that you have free and adequate parking. Make sure that the location you choose has provisions for the telecommunications that you will require such as multiple telephone lines, high speed internet, cellular connectivity, and so on. A good short-term solution would be a home office or an executive suite.
Once you finalize the location of your office, you will need to furnish it. Find resellers of discount furniture. New furniture is just too expensive. Expensive equipment like computers and copiers can be leased.
Hire competent advisors. If you do not have a tax advisor or a business attorney, this is the time to begin looking for them.
Decide on the form of your business, whether you want it to be a corporation, a sole proprietorship, an LLC, etc. This is where you will require the expertise of an attorney and accountant. Have the attorney draw up all the paperwork of the business, and get a tax professional to deal with your taxes, filings and books.
Devise a marketing plan
Without a market, you will have no business. Product, promotion, price and place are the main elements of marketing. Does your business idea have a market? Have you identified your customers, and what their numbers are? Will your product or service be able to attract more customers down the line? Have you determined who your competitors are, and why people should opt for your product or service instead of theirs?
While your financiers will certainly want proof of the markets existence, in order to find out for yourself whether your business idea is a viable one, you will have to conduct market research and even have the framework of an order book.
Ascertain your financial viability
Find out if your business idea is feasible financially. Many good business ideas simply remain that good ideas. They just dont take off as viable businesses. You can only determine whether your idea is financially feasible by making a plan. Your financiers will require a financial plan, but even if you do not require any financial backing, you need to check to see that your business idea is not a waste of time and money.
And lastly; if you are planning to get into the business with an acquaintance or friend, it is vitally important to get your lawyer to draw up a partnership. The days of Gentlemens Agreements are long gone.
There is no question that as a small business owner you have persevered and worked hard, dedicating your life to the success of your company. That being said, don’t you think a company you put all of your energies into, deserves the chance at having a happy ending? Have you considered the impact your death, disability, retirement, or even divorce could have on your small business ?
If you are the owner of a small business it is time for you to stop thinking of only what is happening now, and start focusing on what could happen in the future. Therefore, you need to put your priorities into perspective by protecting yourself and your business with a succession plan. A business succession plan is what you need to ensure that your business has a happy ending by remaining secure, regardless of what may happen in the future.
In particular, a succession plan allows your business the chance to be able to stand up to any challenges that may occur along the way. For instance, certain setbacks that you might experience may be entirely beyond your control such as divorce, disability, departure and death. But with a business succession plan you have the chance, as a small business owner, to ensure that regardless of what may happen to you, your business will be protected.
The following are a few aspects you should to take into consideration when creating a business succession plan for you small business:
How to Begin the Succession Planning - Since you need to make choices before you can really begin achieving your succession planning goal, you must first think about your long term business objectives and ask yourself important questions such as –
•Will I sell my small business? •Should I set up a plan that allows me to transfer my business to one of my business associates or a family member? •Does my business have public potential?
Of course, business succession planning begins with much more than simply deciding who you will be giving your business to in the event that you can no longer run your company, or wish to sell it. Additionally, succession planning is about keeping your small business afloat and successful to ensure that your absence will not devastate your company. Therefore, in order to maintain future control of your business, you will need to begin your succession planning by making choices that will concern things such as:
•ownership objectives •asset protection planning •taxation and transaction planning •estate planning You will want to keep in mind, however, that due to the fact that every action you take with succession planning will result in a reaction, you will require the assistance of experienced experts when developing your plan.
Understand the Dollars and “Sense" of Business Succession Planning – Like any type of business preparation, your business succession plan needs to be orderly and handled carefully if you don’t want to suffer the consequences of financial losses – or worse – the loss of your small business. That being the case, you need to know exactly what you are dealing with, and how you can achieve the most of your planning.
The one mistake you will not want to make is to overlook your business finances. You can help keep your business secure by properly using the following, and more, in your succession planning before problems occur:
•Life insurance •Disability insurance •Annuities
Furthermore, you will find that with an orderly succession plan, you will be avoiding the possibility of your business having to be sold to pay off the estate tax, in the event of yours or (if you have one) your partner’s death. It is no secret that estate taxes can claim up to 55% of an estate that is taxable, which is no mystery why so many businesses fall into debt, become bankrupt, or are sold due to the death of the owner or partner.
In addition, another aspect that needs to be considered is that clients are most likely to do business with other businesses after the owner or partner is deceased. However with the proper succession plan, your business should be able to maintain any regular clients - or if not - it will be better equipped to survive the possible drop in assets if a slow period should follow.
Know How to Write Your Happy Ending – Remember, when all is said and done, the outcome of your succession plan depends entirely on the choices you make regarding the future of your small business. It is imperative that you take the time to make the best choices that will allow you to implement a succession plan, which keeps you in control of the outcome that involves the transfer of your company. By knowing how to ensure the prosperity of your business future with a succession plan, is how you will write your happy ending.
Both Kris Koonar & Robert Moment 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.
Robert Moment has sinced written about articles on various topics from For Women Entrepreneurs, Public Relations and Small Business. Robert Moment is an innovative business strategist and author of , “It Only Takes A Moment to Score" and upcoming book “Invisible Profits: The Power of Exceptional Customer Service" published in Fall 2006. Visit. Robert Moment's top article generates over 5400 views. to your Favourites.