Start a Business
Tips and advice on how to start a business
Taking the leap into the business world is an exciting and challenging endeavor. You'll need to learn a lot, and fast—from generating a winning idea to registering your company, success comes to those with the proper preparation, a firm business understanding and a careful approach. Before you start a business, spend some time figuring out the details of your vision and gathering information about small businesses in your industry. Begin by reviewing the typical process of forming a company, including the steps to take, resources to use and pitfalls to avoid on the road to success.
How to Start a Business
If you're ready to start your own business, you'll likely need some guidance and clarity for the daunting path ahead. It will be easier to handle all of the elements involved if the process is broken down into smaller steps, beginning with the research and plan. Small business planning is crucial for a smooth business startup and for future success, so pay close attention to the details of your business, industry, financial needs and strategy.
Once you've fleshed out your business plan, consider getting some business training and assistance. The SBA has a variety of resources to help you with choosing a business location, financing your company and determining the legal structure for your business. Alternatively, you can take an online course that will walk you through the crucial steps and help you avoid the common mistakes. Once you've found some sources of startup capital and decided how your business will operate, you'll need to register a business name, get a tax identification number, obtain any necessary business licenses and permits and familiarize yourself with the legal issues surrounding hiring and managing employees.
Business Start-up Issues
Almost every new business will struggle with financing, as the startup costs are typically more than the average bank account can support. Securing a small business startup loan is as demanding as it is important; you'll need to prove your financial responsibility to the lender and convince them that your business idea is a recipe for success in the current competitive market.
When meeting with lenders, be sure to put your best foot forward with organized financial papers and a great credit score alongside a flawless business plan. Also, you'll have a better chance of success if you pursue several lenders for small amounts rather than one lender for a large lump sum. Don't get discouraged if you get turned down by one lender; there are plenty more out there.
There are many challenges that face new businesses, and you may feel like you simply can't afford to keep up with the larger companies out there. Don't fret too much over your marketing budget at the beginning, just persevere. Take a cue from successful small business startups: be persistent in your efforts and think through each move to ensure you're targeting the right people.