It can be confusing, and a bit scary, to start a new business.
What if you:
• Don't know where to start?
• Forget to fill out some government form?
• Are afraid you don't have all of the skills necessary?
• Don't want to fail?
Like any new direction in your life, starting a business is a big step. We at Talking business have started our share of businesses – some are successes, and (we'll be honest) some of them have failed. Some we just closed to move on to opportunities that suited our talents better.
If you don't love what you do, your business will always be a drain on your energies. Do what you love, and it's like being paid to chase your dreams. If you want to cut lawns and work out side, or you just love being outside and need some outdoor business ideas. http://thebusinesshq.com should be able to help you out.
When you start your business, it may very well feel like a child to you. It's your dream, your hope, and your fear, all wrapped into one.
At some point, though, you need to step back and take a careful look at your dream child.
You need to weigh, and analyze, and judge, or you will miss those turning points so critical to the success of your business.
Are you ready for the journey of starting a new business?
Ask yourself the following questions.
Q1 Do you have other ongoing financial resources in your household besides the income generated by your new business?
If you don't have an ongoing source of income other than your new business, you need to take a hard look at the fixed costs for your new business and your minimum fixed monthly expenses. You can't count on a new business to rack up sales quickly. It sometimes takes 6 months or more before the momentum picks up. If you have another source of income that can keep your mortgage paid and food on the table in the interim, you'll be less stressed if things take longer than they should. And they usually do.
If you have savings or a second income coming into the household to cover your minimum fixed living expenses, then Go for It! Otherwise, Stop and Think first.
Q2 Do you have enough free time in your life to commit to a regular schedule for your business efforts?
We all think we have more time than we do. By the time we add up household chores and errands, sleep, eating, paying the bills, and working (if you are working as well as starting your business), there often isn't much time left.
However, quantity of time is not as important as a regular commitment to time, and the discipline to stick to it.
You may not have a lot of time in your life, and because of that you may not be able to take advantage of all of the opportunities for your business. But that just means you may grow a little slower; it doesn't stop you from taking the plunge.
However, if you can't make a regular commitment on a daily, three times a week, or weekly basis at the minimum, your business may never get off the ground.
If you have a full-time job, that will eat up 10 to 11 hours of your day between working, commuting, lunch, and preparing to go to work in the mornings. If you have child-care responsibilities, that chews up a lot of time, too. Same with elder-care. Families take a lot of time and care, and you don't want to sacrifice your relationship with your family for your business. At least make sure you sit down and explain your new commitment to your family, so they understand that you love them and are not deserting them.
If you can commit to a regular amount of time each week, every week, then Go for It! Otherwise, Stop and Think if your current commitments are extensive. You might need to do some reorganizing before you take on more at this stage in your life.
Q3 Have you ever managed a business or helped run a business before this one?
We've all heard about the 15-year-old whiz kid who started his own business and was a millionaire by 20. Or the little old lady across town who became a quilting tycoon.
It does happen. But not often. And you never hear about all of the little factors that gathered together to make that happen. You didn't know that the whiz kid's father was a CEO for a Fortune 500 company and gave him advice, or that Grandma Tycoon had been the Executive Assistant to the Vice President of Marketing for a big clothing company.
It takes more than a great product, some passion, and some startup money to make a company grow and thrive. You've got to run the company while you're making sales. You have to hire vendors, set up phones, buy office supplies, create letterhead and business cards, pay your bills, invoice your customers, and file your government forms and taxes.
That doesn't mean you have to do these things all yourself. But most new businesses are not rolling in cash reserves, so the more things you can do yourself instead of hiring them out, the better. Also, even if you can't do these things yourself, you have to know enough about them to make sure that the people you hire get the job done.
The Small Business Administration, your state business registration agencies, your local Chamber of Commerce, and many other organizations offer start-up advice in these and many other areas. Take advantage of them. They know all those niggling little things you can't afford to forget.
If you have some managerial experience, or know someone who does and is willing to help, then Go for It! Otherwise, Stop and Think whether or not you can afford to hire someone to help. You might need to do some creative financing and planning to trade with another business for help until you learn how to manage these areas on your own. You also might want to consider a mentoring program. Local Chambers often have these for their members.
Q4 Have you ever managed the finances for your family, a company you worked for, or a small business before?
If you've never done small business accounting before, this could be a real challenge for you.
You can learn, and there are programs like QuickBooks from Intuit that can help you learn to manage the finances for your company. If you've ever used a program like Quicken or Microsoft Money to handle your personal finances, you're part way there already.
We recommend QuickBooks accounting products for both new and experienced business people looking for an easy-to-use yet powerful software program for tracking your finances.
You'll need to manage your business bills and payments from customers, and you'll have to file reports to your State and Federal agencies every quarter or so. There will be tax deposits to make, and paperwork to keep track of. A lot of small business owners think they don't have to worry about these things until they are making lots of sales. Wrong!
You should develop good habits right from the start, and the learning curve is much shorter if you practice while you're still getting started. That's the best time to make the little mistakes and learn from them.
This doesn't mean you have to do these things all yourself. But most new businesses are not rolling in cash reserves, so the more things you can do yourself instead of hiring them out, the better. Also, even if you can't do these things yourself, you have to know enough about them to make sure that the people you hire get the job done.
The Small Business Administration, your state business registration agencies, your local Chamber of Commerce, and many other organizations offer start-up advice in these and many other areas. Take advantage of them. They know all those niggling little things you can't afford to forget.
If you've managed money for a company before, or know someone who has and who is willing to help you get started, then Go for It! Otherwise, Stop and Think about this one. You don't want to get into a cash flow bind or potentially even drive yourself out of business because you weren't able to manage your finances. With a little practice, it isn't hard, but don't leave this off the To-Do list.
Alot to think about ? It certainly is Check back in the next few days for Part 2
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