You probably already know the dismal statistics about how many new businesses fail within the first year. Do not let those statistics discourage you if you really are an entrepreneur and want to start your own business. Poor planning is one of the reasons for failure, but you can make up your mind to plan your business every step of the way.
When you first start thinking about your business, talk to other business owners and gather ideas and advice you can use for your business. Try to learn from every experience you have and every person you meet. Take advantage of these resources and start writing down your ideas.
Once you have a targeted idea for your business, your next job is to do the research to be sure that your great idea will thrive in your market. This gives you time to fine-tune your plan before you start spending money on the business. The U.S. Small Business Administration website is a great resource with free information for small businesses. Among other things, the U. S. Small Business Administration says that you should be able to answer all of the following questions before you spend money to start a new business:
o Is my idea practical and does it fill a need?
o Who is my competition?
o What can my business offer that other companies cannot?
o Why will your potential customers purchase products or services from you?
o How will you reach your potential customers?
o How much money do you need?
o How will you get the money you need to start your business?
o When will you be able to pay yourself a salary?
After you answer these questions and decide that you can proceed with your business, the next step is to develop a business plan. Many small business owners overlook this very essential step, but you should not. This is where you closely examine your start-up costs, business model, overhead, and the other fine details of running a business.
You can find sample business plans and free advice on the U.S. Small Business Administration website, and SCORE volunteers will write your plan for you. There are many resources that will help you prepare your business plan. The most important information in your business plan is:
1. Business structure–Will you incorporate or form an LLC?
2. Budget–Estimate your earnings and expenses by categories such as advertising, marketing, insurance, taxes, rent, tech support, Website, phone service, janitorial services, and any other expenses that you anticipate.
3. Start-up costs–You should have all of your start-up plus the rule of thumb is that you must have your living expenses for at least a year.
There are many books in the library with great information about starting your business, and you should take advantage of any help that is available. Remember, a business owner must work hard and be committed to the business if it is going to succeed. You can rely on your knowledge and experience and stay focused on your goals..
Jo Ann Joy, Esq., MBA, CEO
The future of your business starts here!
You may contact Jo Ann by phone at (602) 663-7007, by fax at (602) 324-7582, by email at joannjoy@Indigo Business Solutions.net, and by mail at 2313 East Ocotillo Rd., Phoenix, AZ 85016. I have many published articles, and I will send any article to you free of charge. Most consultations are free.
For information about other important legal, tax, and business topics, free copies of articles, or EBooks, please visit our website at www.IndigoBusinessSolutions.net
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