There are so many exciting
topics one can share about starting and running a small business â¦it is near
daunting! But, yet equally exciting!
Here are a few basics I
can share off the top of my head:
WHAT IS YOUR
BUSINESS ABOUT?: Likely you are
most excited about your product! Excellent! That's vitally important. What do
you know about the market for your product? Examining that is essential.
Here are a few questions
to ask yourself and research:
- Is your market a local
- Do you know all you can about your competitors?
- Can you sell your product
- If so, is your target your
country or the entire world?
BUSINESS PLAN: Do you have a business plan? I mean a formal
written business plan at least in outline form? If so you will have addressed
the items I will touch upon in this article. Besides passion, likely the business plan is the most basic business tool you'll
need to help you chart and stay on course. If you don't
know how to draft one, there are terrific consultants available to help you get
started. Your business plan will include all the items I touch upon in this article and a few more.
YOUR PRODUCT & PRICING: How do you determine the price for your product? There's a bit to this as well but some
- What price are your competitors selling the product or
- What are your fixed costs to be in business?
Are there other expenses that should be built into
BUSINESS ACCOUNTS: Have you set up a separate business checking
account? Doing so will make keeping track of your income and business expenses
so much easier. Only transactions related to your business flow through this
PROFESSIONAL TEAM: Do you have a professional web presence? By that I
mean do you have the support team of an accountant, bookkeeper, lawyer and IT
professionals at a minimum? Your bookkeeper will help you with your day-to-day accounting,
your accountant will file your taxes for you, your lawyer (usually in
conjunction with your accountant) will help you determine what business
ownership form (Corporation, Sole Proprietorship, Partnership, etc) is best for
you, and your IT professional will work with you to create a one-of-a-kind website!
you have the personality for it? Running a small business usually requires passion,
tenacity, patience, some basic analytical skills, excellence in
your field, tenacity and integrity to name a few. Are you disciplined enough to work on your own without someone else
cracking the whip? These are some essentials.
Do you have the initial funding necessary for start-up? Likely you've been
socking a little bit of money aside to cover you during the initial stages. Or
you have access to some funding. You likely need to have a bit of money to make
COSTS: What are some typical start-up
costs? If you are not working a full-time job in the process, you'll need money
to cover your basic living expenses until your business profits can support
you. Do you need to buy equipment? Rent office space? Pay someone to assist
As you can see, and already likely knew, there are
some prerequisites that are best to have in place as you launch your new
business. You can do it! Build a team, have a little money put aside, have a
business plan and go for it!