Starting a small business is a big endeavor that no one should enter into lightly, but if done well, it can be one of the most rewarding and financially beneficial decision of your entire life. If you’re itching to start a small business, chances are you’ve got at least a bit of entrepreneur in you, so here’s some things to keep in mind as you prepare to start your own business.
Choosing The Right Type Of Business
If your next small business is currently a blank slate, you’ll first want to establish what type of small business you’ll be starting. A few options for starting your own business would be a franchise, a sole proprietorship and a business start up.
A franchise doesn’t necessarily mean a million dollar fast-food restaurant; many franchises make great home businesses and could be anything from an internet home business to a service business like roof repair.
Sole proprietorships are businesses that are owned and operated by just you (or you and your spouse); sole proprietorships can be any type of business and will afford you many tax benefits that aren’t available to you if you are working as a contract employee.
A business start up is the traditional business type that builds upon a strong business plan and can expand dynamically and transform as it grows. This is typically the hardest type of business to start, particularly on your first attempt, but also has the biggest potential in the long term.
Crafting The Perfect Business Plan
A business plan is a must-have if you intend on getting a loan or a group of investors. A strong business plan will detail all of your business ideas for your new startup including the projected financials, monetization strategy and overall trajectory for the company. A franchise will typically provide the business plan for you, if you are starting a business from scratch, consider talking to an experienced entrepreneur or hiring a consultant to help you craft this immensely important document.
Fundraising
Whether you plan on starting a home business or a multi-national conglomerate, you will most likely need to raise some money to get going. The two most popular approaches are a bank loan or getting a group of investors together.
The bank will be more difficult initially because they will be hesitant to take a risk on a first time business owner, but in the long run you will probably end up on top if your business does well, since the bank will not own a piece of your business.
With a group of investors, you will often be able to get up and running quickly, but you need to carefully consider your terms or you will end up giving away too much of the company, or conversely raising too little startup capital and running out of money too early.
Above all, make sure that you do not simply invest your life savings into your business idea. This is a huge risk and if you are planning on doing it because no one else will give you money for your business, you need to take a closer look at your business plan and see why no one is willing to take a chance on it. The initial round of fundraising for a business is often referred to as the “friends, family and fools” round, so if you end up being the only investor, make sure you’re not the fool.
Once you have all your ducks in a row, it’s time to launch your business. Check out part 2 for the next steps.
Mon, 04/2/2012 - 01:56 AM | viewed 422 times
In February, 2012, Facebook held its 'fMC Conference' which introduced upcoming features and changes to the site, including Timeline for Pages. All of these changes impact the way an entrepreneur or smb can best utilize their Facebook presence to increase traffic, interact with fans, and ultimately, convert these fans into customers. Here we'll take a closer look at the changes to Facebook, how you can use the new features to your advantage as part of your business plan, and some helpful tips on creating a successful Facebook promotion.
Sat, 03/10/2012 - 05:35 PM | viewed 492 times
In the initial stages of a business startup, most entrepreneurs recognize that they'll need the expertise of an accountant at various times, but few realize that they'll no doubt need the help of another professional, an attorney. Their logic would be that they don't plan on breaking the law or getting sued, so legal services aren't necessary. The truth is quite the contrary, however.
Sun, 03/4/2012 - 01:54 PM | viewed 531 times
Now that you've developed a great startup concept, and you're in the business plan development stage, the time has arrived to come up with the right name for your new endeavor. There are a number of differing theories on what makes a great business name, but one thing is certain, choosing the right name can play a big part in how your business is perceived by your customers, and it can make or break your image.
Sat, 03/3/2012 - 12:55 PM | viewed 411 times
On average, roughly 600,000 Americans start new businesses each year. If you're one of the millions more contemplating taking that giant step into business ownership, don't let fear of the unknown stop you. Some of the stumbling blocks for would-be entrepreneurs include indecision about the right kind of business, a fear of putting their money and time into a business that fails, or they may simply have no idea where to start. Generating an idea for a small business isn't always easy, but with some good advice and common sense, you can learn how to choose a viable concept.
Thu, 03/1/2012 - 12:16 PM | viewed 618 times
If you're a small business owner or an entrepreneur involved in your first startup, you're well aware of the impact that successful Facebook marketing can have on your bottom line. Finding your way through the maze of available apps and tools is time-consuming, tedious work. If you're on the hunt for the latest and greatest ways to reach a larger audience and build your business, check out our recommended Facebook tools and apps that are specifically geared toward taking full advantage of your fan page.
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