Business Basics

Starting your own business if not done correctly can leave your pockets empty, and your dreams are fading away. A business owner I’ve talked to seem to start their business with no guidance and the result was money lost. After I started my own business, I felt myself unorganized and losing money, so I stopped and put my thinking cap on and came up with eight things I should have done before opening my doors.

My 8 Steps I Believe You Should Take Before Starting a Business

Make Sure You Have the Knowledge About the Business You Are Starting.

Most new business owners start a business that’s a spin-off of their own experience whether this is running a restaurant or a company that specializes in garage door repair. This is not a requirement, but you need to have knowledge about the type of business you are about to start before starting.

Knowledge can be gained from taking classes, getting certified, reading, and internships, mentoring programs or purchasing a franchise. No matter what avenue you take, make sure you have the needed skills to be successful before you get started.

Assess the Current Economic Conditions

You need to be aware of the strengths of our economy because this will affect your bottom line. Educate yourself on how the recession, inflation, governmental regulation and interest rates affect you’re business and other businesses as well. I’m not suggesting you become the economist, but you have to understand the basics of our economic system.

Choose Your Business Type

There are three forms of business ownership: Sole Proprietorship, Partnership, and Corporation. You need to explore the advantages and disadvantages of each when it comes to your particular business.

Develop a Management Plan

You need to determine how your company will be organized, your production process, your management style and requirements of any managers you have working for you.

Develop a Financial Plan

Financial planning allows you to decide how much funding you need and if your businesses were feasible.

You need to also decide on your banking and accounting system.

Develop a Marketing Plan

A good marketing plan helps determine your target market, product or service characteristics, your pricing structure, sales plan and how you will market your product.

Have a Risk Management Plan

You need to identify the potential risk your business may be exposed. Once you identify those risks come up with a plan to manage those risks. The most common risk management is insurance.

Step 8: Have a Growth Plan

Most people go into business with the goal of making a profit and growing their company. You need to come up with a realistic plan on where you want to be in 5 to 10 years from the day you started your business. You will to have a plan to help you get there and reevaluate that plan monthly to make sure you are on track and adjust or change that plan as needed.

Starting your own business may sound like a lot of fun but there are many things that you need to take into consideration before you start a business of your own. Most businesses fail not because of a lack of money, but because a lack of planning. You really need to have a short term and five year business plan before you begin.

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