Business Startup Basics

By: Stephanie Chandler  

Before you begin any business, it’s important to do a lot of homework. The failure rate of new businesses is upwards of 50%, partly due to lack of planning. Following are some suggestions for getting started:

*Get Organized - There are many tasks involved when starting a business including choosing a business name, applying for business licenses, setting up an accounting system, and writing a business plan. You will need to keep notes and organize a filing system online and offline. To begin the process, you can download a free business startup checklist at www.BusinessInfoGuide.com/startupchecklist.htm.

*Study Your Industry - Read books, visit websites, and join trade associations so you can learn everything there is to know about your industry of interest. If you are venturing into an industry that you know little about, try getting some experience by working or volunteering.

*Talk to Business Owners - Most business owners are happy to help others, provided they don't view you as competition. Contact owners of businesses outside of the area where you live. Let them know you are interested in starting a similar kind of business and ask questions. You could offer to buy them lunch in exchange for some friendly advice. You could even e-mail business owners across the country to ask for advice (I did this myself prior to opening my bookstore in 2003. At least half of the people I wrote to sent me back some great advice!).

*Read About Small Business – Start by reading a minimum of three business books. Check them out from your local library or take a trip to a bookstore and invest in growing your knowledge. Also check out Home Business Magazine, Entrepreneur, and Inc. Each is worth the price of subscription.

*Access Free Resources - The Small Business Administration (www.SBA.gov) offers classes in most major cities. The Service Corp of Retired Executives (www.score.org) provides free counseling to entrepreneurs. There are also many websites with business startup resources:
www.BusinessInfoGuide.com
www.IdeaCafe.com
www.Entrepreneur.com

*Write a Business Plan - You will need to have a business plan if you apply for a business loan, though even if you aren't applying for a loan, you should still create one. The act of writing the plan will teach you a lot about the business you are starting because it forces you to examine every aspect of the business. There are numerous books available on business plans and you can even purchase software to help you write yours.
Download a free business plan outline at www.BusinessInfoGuide.com/bplans.htm.

*Develop a Marketing Plan - Unfortunately, you can't just turn on the "Open" sign and expect people to find you. Marketing is extremely important to business longevity. Not only do you have to let people know you’re there, you have to keep reminding them. It takes an average of six to eight exposures to a product or service before a consumer makes a decision to buy. The "Guerrilla Marketing" series of books by Jay Conrad Levinson provide lots of great marketing tips.

*Plan a Proper Budget - Under capitalization is one of the leading causes of business failure. Be sure you have your finances in order and have extra money set aside for unexpected expenses. A good rule of thumb is to develop a list of startup costs and then double it. You will also need enough money to live on for six months to a year or more. For information on business loans and grants, visit www.BusinessInfoGuide.com/money.htm.

*Don’t Leap Off a Cliff – While a leap of faith can work for some people, it’s not always a wise choice. A better choice is to proceed with caution and never wager more than you can afford to lose. The ideal option is to start your business on the side while maintaining some steady income. This will give you the opportunity to grow your business and make sure it can support you over the long run.

You might be surprised by how much fear can be removed from the equation by educating yourself about what you’re getting into. Starting a business can be very rewarding, but it also requires a lot of work and dedication. Also be sure to pursue a business you can be passionate about. Because of the hard work and investment in time and money, you will increase your chances of success and your quality of life if you genuinely love what you are doing.

About the Author:
Stephanie Chandler is the author of “The Business Startup Checklist and Planning Guide: Seize Your Entrepreneurial Dreams!” and founder of http://www.BusinessInfoGuide.com, a directory of resources for entrepreneurs. Subscribe to the newsletter for hot tips and small business tools by sending an e-mail to Newsletter@BusinessInfoGuide.com.



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