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Think Before You Leap Into A Small Business

Aug 17, 2007
So you want to set off into business for yourself? It's true you will have no manager. You could set your own hours as well as work on whatever you want to do. Sounds good, doesn't it?

Then again you might want to look before you leap. There are loads of things to deliberate over when starting off a small business.

Initially, you need to think about what purpose do you have for desiring to strike out by yourself? Do you only want to be your own boss? Are you yearning for some financial independence? Do you crave creative autonomy for your work and your talents? Any one or more of these reasons are fine and may provide you with a jumping-off point for your business plan.

Second, ask yourself what type of business is correct for you. What do you like to do? For example, if you enjoy creating physical things then a carpentry business could be for you. What technical acumen do you have? How much time are you ready to put in to operate your business? A new business will take many hours of labor to get it running effectively. Do you have a past-time or interest that is saleable? If you love collecting coins, what about a chain store dedicated to supplies for fellow fans?

After that, ask yourself what you consider a sensible business idea? Will your business idea fill a need? Perhaps you could come up with an improved quality version of something that is already on the market, as well as offering services different to other businesses inside your area?

Now consider exactly whatever kind of business you would like to get involved in. Will it focus on one field such as coin-collecting or a wider spectrum such as crafts? Take the products and services you hope to provide. Decide on a name for your business plus a location you will target. Will you need to buy equipment up-front in addition to supplies? How will you pay yourself? And don't overlook such items like business insurance.

Now that you've thought through the important initial judgments, you must now deliberate over wider issues. What law-based restrictions, if any, apply within your sphere of business? How will you distribute revenue when you receive it? Where are your customers coming from? How many people do you plan on hiring to help you in your small business?

How are you going to attempt to market your small business? Certainly, you will be using commercial ads within local newspapers and also ensuring you get your business listed in the phone book. But when placing these advertisements, be sure to offer detailed information about the merchandise and services you have to offer. Let the public clearly understanding what you have to give them. If your business caters to a particular marketplace, ensuring your marketing efforts directly targets there.

What about the financial portion of your endeavor? Where will you obtain your initial startup capital? What about monthly finances? Perhaps draw out a business plan for the first 12 months. What is your imagined return on your investment? Will you carry out the accounting or take on an accountant? With all you will have to deal with at startup, employing an accountant is advantageous. What about a lease or rental agreement? Don't forget taxes. Local, state plus federal government taxes should be carefully budgeted for.

Finally, how do you plan to run your business? You need a plan for day-to-day operations. Consider your choices for employing personnel. And don't forget about scheduling for the building or delivery of your manufactured goods.

There are so many things to think over whilst starting off a new business venture. These are just some of them. It sounds like a lot of effort just to get a small business off the ground but if you do invest the time to do so, you'll be amply rewarded with a thriving small business.
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