This is it, you’ve decided you won’t put it off any longer. It’s time to take the plunge, become your own boss and start your own small business. The limitless possibilities and total control have you excited, but the fear of the unknown and the potential of failure make you nervous. You want your small business to be a success, and while a lot of that will come from your interactions with customers each and every single day, never doubt the power of setting your business up on a good foundation.
Many new businesses fail because they were not started properly, so to help you clear this important hurdle, here are our tips for laying the groundwork to successfully start your small business.
* Be sure you’re ready. As we established above, you’re mentally ready to take the plunge and start your own small business. Now you have to be sure you’re financially ready to start your business. Do you have enough money set aside to begin the business? Will you need loans? How many hours a week can you commit to your business? How will you earn money in the beginning? Most small businesses require more than a 40-hour-a-week commitment and initially pay little to nothing. Be sure you’re ready for both eventualities.
* What does the market look like? You may have been driven to go into business for yourself because of passion and you may understand your business thoroughly but do you know the market? What is your niche? If you plan to sell mainstream items at a lower price, for example, you’ll have a hard time competing with Amazon. Identify what special advantage you can bring to the market and if you can’t find one, you may be best to hold off.
* Establish your payment strategy. You hope to take in as much money as possible with your new business, but how you handle those payments could determine how much money you lose to unnecessary fees and how much you can keep for yourself. An ACH payment strategy allows you to send and receive low-cost payments from multiple origination banks, and the comprehensive transaction recording can help you at tax time. Get this plan in place now because you won’t want to have to hunt for a solution later.
* Draw your line in the sand. They say your business isn’t real until you apply for a Federal Tax ID number, and as you’re doing that, you need to determine where you will set up shop. Location isn’t as important if customers won’t come to you, but pick a spot that you can afford and one that gives you the room and meets the needs you have to run your business as you wish.
* Expect to ride the wave. Even the best business plans give way to some form of trial and error as you go along. The market is always changing and you need to change with it. Mentally prepare yourself that some things won’t go as you expected — and that others will go better than you expected — and you’ll be prepared to make the most of your business each and every day of its operation.
