4 Things You Must Know Before Starting a Business

When the office work becomes boring or tough we say ‘I think I will start my own business’. When your manager becomes too bossy and unappreciative we say ‘it is about time I started my own business and be my own boss after all I have some experience in so and so field so I can pretty much do well’. Wrong, never start a business for the wrong reasons. It is a wrong foundation for setting up a business.

Starting a business is rewarding, interesting and it helps you to bring ideas to life. These same ideas will make a difference in the lives of your clients in return. But when you start a business for all the wrong reasons it becomes a night mare because when you hit a brick wall you just might abandon the whole idea and all you have invested; your time and money will be wasted and lost.

Before you start any business there are at least 5 things you must be clear on.

1. Why do you want to become an entrepreneur? – To start a business you must have a ‘WHY’ what you hope to achieve or accomplish with the business. To be success at this, your ‘WHY’ must start with you. What lifestyle do you want to create for yourself and your family? This is the starting point. You don’t start a business because you want others to know you are intelligent. You start a business because you want a new lifestyle for your self and you want to make a difference through what you have to offer. Remember your ‘WHY’ must be strong for the business to succeed.

2. What Talent/Skill/Hobby/passion do you have? Can this be turned into a profitable business? Do you need to retrain to start your business? Be absolutely sure of what you can offer and carry out research on how you can build your business round your skill/passion. Remember not all passions become profitable businesses.

3. Who do you want to serve with your business? Are you certain this group of people will be interested in what you have to offer? Who are they? what are their habits? Download a copy of my ‘How to Locate your Target Market’.

4. Where will your business be based? Will it be operated from home? If yes do research on what is required in your locality. Do you want to set up outside the home? The answer will depend heavily on what services and products you are offering and what lifestyle you want to create for yourself.

5. Know that it will be a slow start to a stable and profitable business. Don’t get frustrated when you don’t start counting profits in your first month. Make sure you have a mindset that believes your dream is worth pursuing. Join a network group and learn from others in your field or other business women. Join a mastermind or set up one with your friends and become accountable to each other.

When you are able to deal with these issues then you are ready to start a business.

Enjoy every minute of your business and don’t make it a job. You might work long hours at the early stage of the business but, work towards defining the hours you want to work to accomplish your purpose of starting the business. Enjoy the lifestyle that you get out of your business and live your best life.

To Your Success
Pamela

Start a Business Successfully

To Start a Business is your objective and you wanted to know the important steps to accomplish your goal. The objective of this article is to lay out the steps to getting your business idea into a business operating entity. It is assumed you have decided on the type of business and have some capital to invest.

Prepare an outline of your business plan according to the best of your knowledge. You can get information from the internet and your local library about the components of a business plan. If this is the first time starting a business then you should be prepared to learn new terms and financial descriptions. You will not understand everything at this stage but that is normal.

Find the right professionals to make up your support team. This step is vital to your success. You need the input from competent experienced professionals to save you time and money. You probably know that 80% of new business startups fail within the first two years. The rate of expansion of a new business at a pace which can not be funded by the business’ resources is the main reason for the failures. Lack of practical experience by the new business person will lead to mistakes without practical guidance from your advisors.

Your support team will include an accountant, lawyer, insurance agent, personal financial planner, banker and business coach. Meet with each one of the above participants and run your business objectives and current plans by them and listen to their comments. Be prepared to find a replacement for any of the above if you are uncomfortable communicating with them and perceive any lack of interest. Ask them for their recommendations on important components of your business plan. Areas you should focus on include the following:

  • Incorporating a small business corporation and the share allocation for risk management and tax planning purposes.
  • Sources of funding for your business and how to minimize your personal guarantees.
  • Risk management regarding your business operations
  • Personal financial planning issues including the protection of family assets and retirement plan to ensure that personal goals are not in conflict with your business goals. Personal goals are the primary ones.
  • Type of accounting system needed for your business.
  • Best way to invest money into your business from a risk and tax perspective. Normally best to advance funds to company as a shareholder loan instead of locking in funds as share capital. Your accountant and lawyer should make this area clear to you.
  • Discuss the preparation of a detailed business plan with your accountant who can give you a quote for his/her services.

Prepare a detailed business plan with the help of your accountant. This plan will provide you with the blueprint for your market, customers, cash flow, legal organization, competition, equipment, leases, etc.

Triple check all your numbers and information. Talk to suppliers and clarify the product sources and trade account arrangements if you are purchasing goods for resale or materials which are included in your operations.

Find suitable office and/or warehouse space and review all lease agreements with your lawyer before signing anything. Consider putting the premises lease in a separate legal entity if the commitment is significant in order to minimize risk.

Consider creating a separate holding company to hold the shares of your operations company in order to facilitate the transfer of equity from your operational company to your holding company; on a zero tax basis; thus protecting the equity which will be created by your operational company.

All of the areas of interest in starting a business cannot be covered in this short article; however, you should be able to see the different options and concerns you have to address before the bell rings. Consulting with your support team at the beginning of the process to start a business; will help make your venture successful.

Make Money Fast From Home Business

What Business To You Pick?

There are many jobs you can pick that can make money fast from a home business. There are computer and internet businesses. There are writing jobs, there are home manufacturing jobs where you sell from home products, or items you have built. They all require some form of inventory. There are just plain phone sales or marketing businesses. There are service or trade jobs that require you do repairs on customers homes and equipment. All these jobs can be run out of a home business and many more. The business models that require skills and services are dependent on the service you provide the customer and the money you make depends on how well you did the job and the speed in which you did it. If the customer is happy with your performance he will recommend you and call you back for return business. The money you make from these type of home based businesses are a result of the skills that you have and perform. So picking the right home business based on how much money you can make may depend on experience and expertise. There are some home businesses however that do not require a lot of skills or investments and we will explain one of them here.

How Much Money Does It Take To Make Money Fast From A Home Business?

The key is to pick the right business that will make you the most money without a lot of investment or startup capitol. The question then becomes what is the business and how much does it cost to start? As stated above there are businesses that require you to buy inventory and materials to manufacture the product you are selling. There are businesses that require you to spend money on advertising or marketing and phone, or fuel costs. Some people decide they need new equipment or office furniture before they even start the business. They should get the business started and up and running before they invest thousands of dollars on these items. Most home businesses can run just fine on the old family computer and printer. Before you do any spending form a business plan and don’t spend money that goes out the door before it starts coming in the door. There will be plenty of time to spend all that money your going to make if you run the business properly. Most businesses that fail do not perform the work before they spend the money. There are businesses models like the electrician or plumber that need the tools to do his trade. You have no choice in this case other than to buy the tools of the required in the service of his business. Some types of home offices may need certain equipment to pump out the work, but there are home businesses like the home delivery business that can make money fast with very little start up capitol.

What Does It Really Cost to Start?

I started one of these businesses. I had a large SUV that could haul some cargo so I really did not have any transportation costs other than the fuel it took to do the job. I also did not purchase business insurance because I was going to do the job myself and have no employees to start with so all the risk was mine alone. I could get insurance as the business developed. The business license and the state and federal registrations cost me about $250.00. There was no inventory or equipment to buy. The business did need a website. You can build and host a website for $4.95 per month and purchase your domain name for $10.00. The cost of advertising and marketing the business could be done with no money. I started out by delivering flyers to all the condos and property managers. I left flyers at the supermarkets and department stores and started some free internet marketing. Word of mouth didn’t hurt. I got my first call in a couple of days and was delivering to retired couple and some tourists. There was a lady who had just had an operation and could not go to the store. There was a couple without a car and a woman who was about to have a baby. So the free marketing methods can and did work.

How Much Money Can You Make

Not a lot of money to start with, but depending how hard you want to work you can make money fast from this home business. Even though there were other companies in the area doing the same thing, and some grocery stores were delivering their product for free there was room for everyone and I just picked a niche that is was being serviced. Once the community finds you are there they will spread the word. Just remember service is the important part of this business. I was making $25.00 on some deliveries and $35.00 on some for only an hours worth of work and one person tipped an extra $15.00 for a total of $50.00. A delivery that was only a block from where I lived. So depending on how much you want to work, or hard you want to work you can make money fast from this home business. That is the question. If you cannot find a job or you just need some extra income there are ways to get some fast money. You have to work for in this case. It is not a get rich quick scheme, just a way to make money and if you want, grow it into a thriving business.