Sunday, May 4, 2008

Start a Business: Start Your Business for Success - The First Time

You are thinking about starting your business and you know you need to attract and retain customers while remaining in control. Determine how much money you really need to start your business. Before you hit the ignition button and start your business, ask yourself these 10 questions to ensure all systems are go for launch.Take this Quiz before you start your business and save yourself a lot of grief.1. Did you look at all angles preparing for success or failure?2. Do the potential benefits of the deal outweigh the risk?3. Have you taken the steps to keep your investment as low as possible?4. How will you operate your business as a Sole proprietorship, partnership, limited liability company (LLC), or corporation—what makes sense for your business? 5. Is your investment protected by a loan against the business assets?6. Have you decided the maximum liability you will accept as a guarantor of business debts?7. Have you protected yourself to reduce liability on personal guarantees?8. Have you decided the assets you will own in your own name rather than under the business?9. Have you protected your personal assets by judgment proofing yourself?10. Have you reviewed these points with your attorney and accountant?If you answered “no” to any of the above questions, you have a lot of work to do! It pays to prepare for the worst. Then you can spend all your time planning and working for success. One other question you should ask yourself. Am I starting my business to help others? Or am I starting my business just to make money?Most people think making money is the number one priority in deciding what kind of business to start. Put it on the bottom of your list. Your passion, enjoyment and rewards head the list. When you love what you are doing the success and money are bound to follow, but it never quite works in reverse. And if you happen to make a lot of money in a business you don’t love, I’ll guarantee you’d make twice the money in a business you do love.SBA says 50% of start-ups fail during first yearWhen you're starting a new business, the last thing you want to focus on is failure. Here are the top reasons why businesses fail; these figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face.1. Lack of sales and marketing the company’s products/services.2. Poor management3. No focus or disciplined4. Personal use of business funds5. Insufficient money for slow times6. Location7. No web site8. Competition is better9. Lack of commitment and persistence10. Start a business for all the wrong reasonsIs finding the money to support yourself during the early stages of your business holding you back? Don’t spend too much money up front on supplies and equipment. You can start your own business without large amounts of money and high risks, always try to use someone else’s money. Before you start your business, you have to decide how much money you're going to need and you have to make sure that you have it available. Your Business and Marketing Plan will provide this important information.You will need money to set up, start and run the business but you should also have the possibility to borrow some money should something unexpected happen. The reason you should arrange this before you start your small business is that, in my experience, banks don't lend money to new small businesses.Planning is one of the most important steps taken in developing a successful small business. In developing business plans, companies of all sizes face the challenge of determining the size of their markets. People typically spend more time planning a vacation than they do their financial future.In closing business is a lot of things. But without “Cash Flow” you won’t have a business for long. If you plan to bank roll a start up make sure you know what the support payments are and can you afford them.Lifelong dreams, like those of running your own business, are often met a bit at a time until one day you wake up and realize that once far-off goal is now within reach, because you didn’t give up on your dream! Hold on tight to your dreams.Dave Meholovitch is a author, consultant, trainer and speaker. And who assists people with starting or buying a business. To see other offers and services, visit his web site at http://www.secrets-of-owning-a-business.comArticle Source:


Lindsey Masters said...

I like this post, and I'll have to keep it in mind, because I want to run my own business soon. I can use all the help I can get, especially during these tough times. I would prefer to buy a business rather than one from scratch, but I'm not sure which approach I should take. Franchise? Non-franchise? Home based? I don't know. Do you have any suggestions? Advice? Thanks.

D. Stevens said...

@Lindsey -- There are quite a number of resources on-line if you're looking to buy a business instead of starting one from scratch. I know one site called, and it's like this on-line global marketplace where you can buy or sell a business. You can also use it to find a lender, broker, etc.

I also highly suggest local small business groups. They're good because you can network, and they can update you on the area where you plan on doing business.

Good luck!