Starting Your Own Business

Tips for Starting Your Own Business

1. Should I start a Business?
2. Do you want a job or a career? – Having your own business is not a 9-5 job and you will wear multiple hats.
3. Do you have a product or service to sell and the marketplace needs?
4. What is your risk tolerance? – Owning your own business involves risk and sacrifice.
5. Do you get along well with people? – You will deal with all kinds of people, from customers, suppliers, employees to professionals such as bankers, attorneys and accountants.  Each type can make you or break you.
6. Write a business plan to give you a road map for success.

What product or service can I provide to the marketplace?

1. Decide what product or service you can provide to the marketplace.
2. Does the market need your product or service?
3. Is it being provided by others now?
4. What will differentiate your product or service from the ones currently in the market?

Ascertain the market share of the current providers.

1. You need to research the current market to see if there is enough room for you to enter the market.
2. Study the industry, the competition, and your target market.  Research the market through trade associations, the local Chamber of Commerce, and potential customers to determine the need.  What will differentiate you from the others?

What type of entity should you operate in?

1. You have different types of entities to operate in, such as, sole proprietorship, Limited Liability Company, Corporation and Partnership.  Each type of entity has pros and cons and you need to determine which entity is best for operating the new business.

Should you start from scratch, purchase an existing business or purchase a franchise?

1. If you start from scratch, it generally requires a large investment of time, effort, energy and money.
2. If you purchase an existing business, you start with an existing client base, name recognition and established operations.
3. If you purchase a franchise, you have a familiar name and trademark, proven method of operation, managerial support and training from the Franchisor.
4. Each of these methods offers advantages and disadvantages.  You need to make sure which one fits best with your interests, experience, knowledge and personality.
5. Access the SBA.GOV website for information regarding starting a new business, as one of the sources of information.

Obtain proper licenses, register with taxing authorities and engage competent advisors.

1. Need to register with the Internal Revenue Service, State Department of Revenue and you local government for required business licenses.
2. You need to solicit the help of competent advisors, such as attorneys, accountants and bankers to help you navigate the intricacies of operating a new business.
3. Record keeping and documentation is a crucial part of operating a business.  You must maintain documentation to support all aspects of your business.  This applies to the revenue production, as well as, the expenses of operations.  Maintaining proper records allows you to know where you are.  Are you making money or losing money?

Finding a location for operations and funding your venture.

1. Find a location to operate your business that will enable you to accomplish the goals you have established.
2. Obtain necessary funding to operate your company.  Some of the sources are personal savings, family, bank financing and Small Business Administration, angel investors, venture capital, selling stock and possible Economic Development Programs through Federal, State and Local Governments.