When thinking about starting a small business you want to consider “Why are you starting the business?” Often times someone decides to start a business with the mindset they will have more free time, work at home, and have a flexible schedule. Unfortunately, you should avoid these myths . Most the time, starting a business isn’t any of these things. Instead, it is long hours, working at home might be a distraction, less flexibility, and there are lots of hats to juggle. It’s very different then working for a company and it is important to keep all of this in mind when deciding if starting a small business is right for you. If it’s, then let’s dive into getting started with your business idea!

Attitude is EVERYTHING. You should always keep a cheery attitude. Many things are going to happen during the lifecycle of the company, both bad and the good, and the most important thing is to keep a positive attitude.

BIGGEST OBSTACLES TO OVERCOME

The two biggest obstacles startups face whenever starting a business is money and standing. It is advisable to make sure you can stay afloat and have a way of financing when starting out. And reputation can be an obstacle because you don’t possess a reputation or customers. Unless you start out with several customers, usually you are getting started very alone.

WHAT YOU NEED?

VIABLE PRODUCT

You need to provide a product/service that people want to buy. Researching similar products/services is important to see what else is out there that is similar to your idea and then determine how your product will be much better than the competition. Additionally it is important to be able to bring experience to the table. It’s the experience you have that will make the company. Typically, you intend to have a niche to help you take a focused approach and decide which kind of company you need it to be. Lastly, you need to consider if you can sell enough of your product or service to make a living. Are you considering able to cover each of the expenses and salaries that include a business?

BUSINESS PLAN

A business plan is absolutely essential. Exactly what is a business plan?

Focus on an executive summary, that is a high-level description of what the business enterprise can do. Next, you will need a business explanation that lays out the business enterprise in detail. Then, comes the market analysis, who is going to be your customer and who’s your competition? Next, is organization management. Who is going to manage the business enterprise? Will you manage it yourself or will you hire someone from the outside to handle your business? More often than not you are starting off managing the business yourself. Next, you will need a sales strategy, what sort of sales strategy are you going to encompass? And lastly, it is advisable to include funding requirements and monetary projections. What sort of funding do you need to start the business and just how much do you project to make?

A written plan is critical. It is absolutely essential you write down the above information on paper.

There are lots of business plan templates open to help. Even if you are an established business, its not necessary anything complicated. An additional resource is a straightforward roadmap. This breaks out calendar month by month projections for just two 2 years. What industry events will you attend? How many people will you hire? Which kind of marketing campaigns will you run?

Last, goals are really important. It is advisable to set specific goals in your business plan so you know where you are heading.

MEANS OF FINANCING

How will you finance your organization? Some of the key issues to ask are how much cash will you need to stay afloat? Will you be going for a salary? Exactly what will your non-salary expenses be? How many people do you anticipate hiring the first year? Think about company benefits? Even though you are by yourself, you will require benefits and insurance. They are all questions you need to think about.

Should you self-finance or remove a loan? Self-financing is often recommended in case you have enough money in the lender to float the business and your salary for a year or two. This option reduces the pressure. The final thing you need is pressure from creditors. Loans are going to be difficult to procure. In the event that you manage to get a loan, you will have to personal guarantee and you may need collateral.

There is also the chance for a financial business spouse, however, a financial business partner can often result in meddling and pressure. It also may cause one to run the business differently then you envisioned. Remember, you’re starting the business to put your own spin onto it!

A fourth option is a funding company. This is a viable option because they will most likely perform your payroll and invoicing for you. Sometimes the funding company provides a basic ATS system as well that could help you start off. The downside to a financing company is often it really is hard to breakaway. You have to pay off loans with interest and often it is not financially feasible to breakaway. If you use a funding company, you wish to ensure you understand the agreement and know very well what it takes to step away from the funding company.