Many entrepreneurs make the mistake of just jumping in their excitement without putting a strong foundation in place. If you get started without thinking through what you are going to do-- how you are going to do it, how you will finance it, how you will make money doing it -- your chances for success are quite slim.
What are the things that you should know if you want to start a business?
1: Legal and Regulatory Requirements Of Your Business:
When you are decided on starting a business, your first stop should be the business information center of your city or county. A first-stop office can provide you with information packages about licensing, permits, zoning requirements, your particular business type and running a business in your state in general. The packages are usually free, and information very invaluable in terms of starting your business in the right foot. You do not want to start a home business, only to find out after you have bought so much equipment and supplies that your business is not allowed in your residential area. You also need to determine the legal structure of your business, and how to set that up. Your business information center can provide you with the information on how to go about the steps in business registration and setting up of your business. If you will be working solo in your business, you can register your business as a sole proprietorship. Once you have your business registration, you can then set-up your business bank account. If you are starting a business that uses an innovative technology or process and the success of your venture depends on you keeping that knowledge your first stop should be to a lawyer who can help protect your business idea.
2: Operational Requirements Of Running Your Business:
When your business is off the ground and ready to open, you are in an “operational mode.” You need to know and identify elements that can affect the smooth running of your business. Part of this process include knowing and getting the right insurance for your business. You also need to look for the professionals who could provide you with support and advice (accountant, lawyer, etc.). You also need to have your marketing and image arsenal, which includes business cards and stationery. There are a number of manufacturers that provide sample packages of office products, software working demos and stationery or paper samples direct from manufacturers.
3: Technical Aspects Of The Business:
You should know about the business that you are entering. The more you know about how things are done in the business, the better you can serve your clients and manage your business. Plus, the knowledge will protect you from scam artists out to fleece newbies like you. As a start-up entrepreneur, you may find yourself asking, “What are the things that I should know in my business?” Your first resource should be a profile book. There are a number of book publishers and authors that write profiles of particular type of business from How to Start a Home-Based Travel Business, How to Start a Day Care Business from Home, or How to Start a Home-Based Carpentry Business, and more.
4: Marketing The Business:
You need to ensure that money continues to flow in your business by getting a steady stream of customers. Before anything else, research to make sure that a market for your business exists. Make sure you understand who your typical customers are, and how best to reach them. Does your market respond well to classified ads, or should you embark on a high profile direct marketing campaign? Can you simply show them your product and expect them to immediately buy them; or do they need know and trust you before giving their accounts to you? Are they impulse buyers; or are they the types who carefully evaluate the product or service before purchasing? Once you’ve clearly identified them, take steps to ensure that your potential customers will know about your business. Map out a simple plan spelling out in writing the steps you need to take to get more clients or customers for your products or services.
5:Financial Management And Record Keeping:
Whether you are comfortable with numbers or not, you must have the basic understanding of the financial aspects of running a business. Having a strong grasp of the financial requirements of your business can bring you a long way. These includes record keeping, cash flow management, account receivables management, debt collection, and tax management. You must be familiar with the concepts of budgets, accounting and profit margins. You need to know the flow of money in your business, ways to improve your bottom line, tips to lessen your taxes, and stretch out your resources during a dry spell. You also need to have a good idea of how much money you actually need before you start looking for money.
A key point to remember is that you do not have to be an expert in all these areas just reasonably knowledgeable. Otherwise, being seriously deficient in one area could ruin your chances.