| How to Start a Business, Part 1 |
 |
 |
|
The first step is to find a business you'd love to run in a field where there is a strong demand. Check with similar businesses in your area. Ask people how they got started. Pay particular attention to their pricing and costs. Concentrate on a business where your career experience gives you an advantage. Getting into something entirely new increases the odds of failure. For example, just because you like Japanese food doesn't mean you're qualified to open a sushi restaurant. If you're concerned about not possessing the necessary experience in a business that interests you, consider franchise opportunities. Determine how much money, or "capital," you need to get your business up and running. Estimate your likely revenue from the operation. What are the business expensesincluding rent, utilities, supplies, wages, accounting, taxes, insurance, and the cost of goods? Do you have enough assets to finance it yourself without emptying out all of your savings? If you need loans or business partners, start to investigate possible sources of money. Whatever figure you come up with for necessary start-up capital, increase it by about one-third. Start-up businesses often run into unforeseen problems. You'll want a little extra for a cushion. If you're starting a home-based business, you may be the only employee. So you need to check on your tax situation. An accountant or lawyer can advise you on how to organize your companysole proprietorship, corporation, or partnership. It's far preferable to start out small with modest overhead. That way, you can work the bugs out of your operation. That old adage "Don't quit your day job" is very sensible, if you can get away with it. But don't expect instant success. You have to build good relationships with suppliers and customers. This takes time. |
Discuss this item on the forums. (0 posts)