You’ve got a great business idea, but before you cash in your life savings to build your dream venture you need to know some of the essentials of starting a small business. When faced with all the tasks of starting a business it can seem somewhat overwhelming, but getting things started is not necessarily all that difficult. Like any major goal in life, if you break it down into smaller objectives and tasks it’s much easier to get started. Read on to learn the essential steps of starting up a small business.
1. Write a Business Plan
Some people don’t like to put forth time and effort for planning. If you are starting a business and putting your money on the line, don’t “just wing it.” Many great historical leaders and business coaches have …show more content…
Strategies: For each of your objectives, define the strategies for accomplishing them. Action plan: List the actions that need to be done in order to complete each of your objectives.
2. Determine a budget
Obviously, in order to be profitable you need to keep costs as low as possible. Your budget includes your total startup costs and how much cash you have on hand to spend. Be realistic about the costs, as they always tend to be more than you initially may think. To be on the safe side, it is wise to add an additional 20% for unforeseen costs.
It’s also important to determine the expenditures your business will incur for each month. This figure allows you to determine how long the business will last without profit. It’s possible to have profit within the first 90 days, but cash should be set aside for months that see no profit.
3. Decide on a business entity
The paperwork and legal costs of starting a business can be very high. One strategy is to start a small business as a sole-proprietorship as a test phase. This way you can make sure the business is viable before spending time and money on incorporation. However, doing business as a sole proprietor has some added risks, so you should weigh the savings against the risks. A tax professional or business attorney can be of help when making these
1. Write a Business Plan
Some people don’t like to put forth time and effort for planning. If you are starting a business and putting your money on the line, don’t “just wing it.” Many great historical leaders and business coaches have …show more content…
Strategies: For each of your objectives, define the strategies for accomplishing them. Action plan: List the actions that need to be done in order to complete each of your objectives.
2. Determine a budget
Obviously, in order to be profitable you need to keep costs as low as possible. Your budget includes your total startup costs and how much cash you have on hand to spend. Be realistic about the costs, as they always tend to be more than you initially may think. To be on the safe side, it is wise to add an additional 20% for unforeseen costs.
It’s also important to determine the expenditures your business will incur for each month. This figure allows you to determine how long the business will last without profit. It’s possible to have profit within the first 90 days, but cash should be set aside for months that see no profit.
3. Decide on a business entity
The paperwork and legal costs of starting a business can be very high. One strategy is to start a small business as a sole-proprietorship as a test phase. This way you can make sure the business is viable before spending time and money on incorporation. However, doing business as a sole proprietor has some added risks, so you should weigh the savings against the risks. A tax professional or business attorney can be of help when making these