Small business start-up guide
The pre-launch stage is crucial to the success of your small business. You’ll need to carefully consider a number of items during this time, starting with a personal evaluation and moving forward to the all-important business plan.
1. Self Evaluation
Before you invest your resources into a small business, make sure that you have the personality traits of a business owner.
Take time to candidly list your attributes. Things to consider include whether you are self-directed, ambitious, creative and smart. Do you have the endurance of a rock, the flexibility of a rubber band, the charm of an actor? How well do you manage time? How do you respond when under tremendous pressure? And, last but certainly not least: do you enjoy working? Not just an 8 to 5 job but long hours, weekend work, evening work, nonstop work?
2. Resource Evaluation
Once you’ve determined that you have what it takes personally to launch a business, move into the nitty gritty. What are your current resources? This list should include everything from cash on hand to liquid assets to credit worthiness to friends with deep pockets. If you have no assets, do you plan to remain employed elsewhere? Do you plan to get backing from a venture capitalist? Are you going to mortgage your home?
Experts agree that a small business owner needs capital to cover at least a full year of business expenses.
When reviewing your resources, keep in mind that you’ll need a proven track record in some aspect of your proposed business. In short, what are you bringing to the table that would entice an investor or a potential customer?
3. A Marketable Product or Service
This step will include the nature of your product or service, your nearest competitors and what the market can bear.
Marketers understand the adage: “Sell the sizzle, not the steak.” They may be pushing aspirin in a market with hundreds of aspirin products but when they promote their pill, they find something unique about about it and focus attention on that. You’ve got to determine what is special about your product or service because, more than likely, you already have a competitor. Find the “sizzle” for your business.
If you’re considering as retail store, look around. How many competitors are there within a five mile radius? Can the market handle yet one more? The same applies for services - if you’re hoping to get customers while competing against established businesses, then you’re either taking a unwise risk or have an extraordinary service.
4. Design a Business Plan
All the above steps will merge into a formal business plan, which is the crux of your start-up activity. Define your business, state your objectives and how you will put them in action. Set realistic time frames for accomplishing these goals. List those assets an expenses. Plan future activity. Describe your marketing plan. Consider sales and profits as well as expected losses.
Sample business plan templates are all over the Internet. Find one and customize it for your business.
5. Seek Assistance
The best plan to find assistance is through the givernment’s Small Business Administration (SBA) The agency is designed for small business owners and offers everything from information to loans. Find the local branch in your city and set up an appointment. Among the resources the SBA offers is a Small Business Set Up Kit, networking, explanation of the 2009 Recovery Act, basic business training and a host of other free tools and advice.
In conjunction with the SBA are local Small Business Development Centers, which offer workshops and counseling as part of their services to small business owners.
The most important aspects of starting up your small business are practical: evaluate realistically and plan realistically. Far too many dreamy eyed entrepreneurs have seen their passion and their savings disappear simply because of poor planning.
