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Starting a Business
You have a great new idea, product or service or you offer and unique or better way of presenting products and services
and the only way to go is to start your own business. You're setting out to create your own business opportunity.
So how do you prepare for success?
Whether you plan to open a retail store, a restaurant, begin a manufacturing operation, or start a repair service you need
to evaluate your marketing, determine demand and create a business plan.
Some of the greatest business ideas start over lunch or come out of a casual conversation, but few of those ideas jump from
being simple ideas to billion dollar companies without planning. Depending on the business you would like to pursue, the
planning you do now will help you getting the financing you need to get you up and running.
A good place to start when considering a new business opportunity is to ask basic questions that are the building blocks of
your business.
Why Start a Business?
Demand, unique service, knowledge, opportunity… What's driving you?
Are You Ready?
Sounds silly, but if you never worked in a retail store and want to open one then maybe you should work in one first just to
see if you like it. Will you have employees? Can you motivate people?
What Skills or Experience Do You Have?
This becomes important if you will need a loan or investors to help finance your business. The more your skills and experience
relate to your new business the better chance for success.
Once you have answered the questions above you need to start focusing on evaluating your prospective business and developing
your Business Plan.
Identify Your Target Audience
Who is your will shop in your store or buy your services? The more you know about this group the better you can provide the
products and services they will want.
Demand
It is important to identify the demand for your products and services and how will you reach your audience. Do you need to be
on a busy street corner or will your audience drive 5, 10, or 20 miles to find you? Is an Internet site crucial to your success or is it just an expense?
Niche
What is your niche? High end luxury goods, discount products, cutting edge gadgets or general merchandise and will you have a
knowledgeable sales staff or just cashiers ringing up merchandise. As you start to pull together these ideas you can start to
see how these answers may impact staffing, customer services, and sales.
Expenses
There are many expenses involved when starting a business and keeping it running, we recommend that you get a book or find to
help you identify expenses. Normally, you will be asked to do business projections for the first one to three years of the business.
Key Expenses are rents, staffing, payroll and taxes, merchandise, equipment / fixtures, and advertising among others.
Income Potential
It's important to show how you will make money and when you expect to see a profit. Many businesses have seasonal trends, spend
time see if such trends based on weather, sports, or special events may impact your profits. You find that in projecting sales
and income you will be able to determine inventory levels and monthly sales.
This will help you get started on your business plan. When you plan is complete, you may want to have it reviewed by a lawyer or
business consultant and proceed to get financing if needed.
Resources:
http://sba.gov
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