Not so Fast...

Want to start your own business?

 

As a business management consultant, I get lots of calls from people who want to start their own business. The conversation usually starts with, “I want to form a non-profit to empower women”, “I want to open a restaurant, everyone loves my cooking”, or “I have a product I want to make and sell.” Many people have a dream of doing something other than their 9 to 5 for a living. The question you need to ask yourself, do I really want to do this for a living? Sure, baking cakes and cooking for your extended family can be fun but do you really want to turn this into a business. Being a business owner is much different from being a baker or cook. It will take many hours beyond baking that cake or making that meal. When contemplating starting a small business ask yourself the following:

Do I want to be a business owner or do I just enjoy performing this task?

Do I want to job in this field or possibly be a volunteer?

Am I willing to spend the time gaining the knowledge to turn what I love into a SUCCESSFUL business?

There are many perks to owning your own business like not having to worry about set hours, sick leave, building up vacation hours, and commuting, not to mention the unlimited earning potential. The truth is, it is hard work and most businesses will fail. You have to be willing to accept the failures in the beginning and keep pushing. You have to be able and willing to take a loss to start, stay focused, to spend 60 + hours per week if necessary.

If you still think you’re ready, here are a few things to start with:

Start-Up Capital – If you are selling a product, you will definitely need it! For some services, you may simply need an internet connection, computer, and printer to get started.

Reduce Your Expenses – If you’ve decided to quit your full-time job to start your business, you will want to cut expenses wherever you can. You may want to get a roommate, maybe get rid of your cable expense, or turn your heat down and wear a sweater. You need to reduce your expenses to be prepared for those rough months and also to be able to put more money into things which will increase your business activity.

Naming your business – Develop a name that is unique but not so unique that people don’t know what it is that you are selling. If you have a unique name, be sure to include a tag line that describes your product exactly. Don’t let the name you choose limit you unless you are selling something specific. For example, a name like “Christian Electronics Repair” or “Chocolate Studios” may limit you to serving only those of a certain religion or race when you are capable of providing this service to anyone. You don’t want to limit your income opportunities or offend anyone. Send the name out to your friends and family for opinions and a vote. Register your trade name with your state.

Legal Business Formation – Do you want your business to be a sole proprietorship, a limited liability company, or a corporation? Legalzoom.com can help you with this task for very little or you can go to your state’s website for creating a business.

Logo - In the beginning, to save a few dollars, you may want try fiverr.com to obtain a logo or a similar site of independent contractors that can give you some inexpensive logos. You can always change your logo later.

A Business Plan – Your business plan will include a description of your services or products, key personnel, product prices, marketing, and a three to four year plan. I recommend using a service like www.liveplans.com. It will take you through each step and even provide you with examples for each section.

Don’t Go Overboard – Start small. Don’t go and rent office space, buy tons of equipment, or pay consultants high fees to get you started.

STAY MOTIVATED – Surround yourself with like-minded people. Find other successful business owners in your field through networking groups. Join meetup.com to find some local area meetings, go to your local small business development center for information on free classes to improve your business, and join social media groups where you can ask questions or find helpful articles.

Of course there is much more to running a small business than these few beginning steps but if you can make it through these…you’re on your way!