How to Start a Business
A Step By Step Guide to Starting a Small Business Successfully
By BizMove Management Training Institute
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Copyright ? by BizMove. All rights reserved.
Table of Contents
1. What you need to know before you start
2. Determining the feasibility of your business idea
3. Starting your new venture
4. Buying a going business
5. Choosing a franchise
6. Ten essential aspects of managing a business
7. Special requirements and needs
8. Time to make the decision
9. Going into business FAQ
10. Checklist for starting a business
1. What You Need to Know Before you start
So you are thinking of going into business. This can have advantages and
disadvantages. Running a business of your own will bring a sense of independence,
and a sense of accomplishment. You will be the boss, and you can't be fired, though
there may be days when you would welcome it. Because you can pay yourself a salary
and the profit or return on your investment will also be yours, you anticipate a good
income once your business is established. You will experience a pride in ownership -
such as you experience if you own your own home or your own automobile. You can
derive great satisfaction from offering a product or service which is valued in the market
By being boss you can adopt new ideas quickly. Since your enterprise undoubtedly will
be a small business - at least in the beginning - you will have no large, unwieldy
organization to retrain, no board to get permission from, each time you wish to try
something new. If the idea doesn't work you can drop it just as quickly. This opportunity
for flexibility is one of small businesses greatest assets.
These are some of the advantages and pleasures of operating your own business. Now
take a look at the other side. If you have employees, you must meet a payroll week after
week. You must always have money to pay creditors - the man who sells you goods or
materials, the dealer who furnishes fixtures and equipment, the landlord if you rent, the
mortgage holder if you are buying your place of business, the publisher running your
advertisements, the tax collector, and many others. All of these must be paid before you
can consider the "profits" yours.
You must accept sole responsibility for all final decisions. A wrong judgment on your
part can result in losses not only to yourself but, possibly, to your employees, creditors,
and customers as well. Moreover, you must withstand, alone, adverse situations caused
by circumstances frequently beyond your control, To overcome these business
setbacks and keep your business profitable means long hours of hard work. It could
very well not be the work you want to do. As someone else's employee you developed a
skill. Now, starting a business of your own, you may expect to use that skill 40 or more
hours a week. Instead, you must perform the management tasks as well. You must
keep the books, analyze accounting records, sit back and do long range planning, jump
and handle the expediting and, when everyone has gone home and you finally have
caught up with the paper work, you may even have to sweep the floor.
As your business grows and you become more successful, you may not do some of
these activities. As an owner-manager, however, you must - at least at first - give up the
technical aspects you know and enjoy doing, and focus on the management aspects.
To get your business off to a successful start, you must be a manager not an operator.
You will never be entirely your own boss.
No matter what you choose - manufacturing, wholesaling, retailing or service business -
you must always satisfy your customers. If you don't give the customers what they want,
they'll go somewhere else and you'll be out of business. So every customer, or even
potential customer, is your boss. Your creditors will also dictate to you, and your
competitors' actions may force you to make decisions you don't want to make. National
and local government agencies will insist that you meet certain standards and follow
certain regulations. The one thing you can decide yourself is how you will satisfy all of
Are You the Type?
The first question you should answer after recognizing that there are two sides to the
prospect of establishing your own business is "Am I the type?"
You will be your most important employee. It is more important that you rate yourself
objectively than how you rate any prospective employee. Appraise your strengths and
your weaknesses. As a prospective operator of your own business, acknowledge that
you are weak in certain areas and cover the deficiency by either retraining yourself or
hiring someone with the necessary skill.
Numerous studies have been made of small business managers over the years. Many
look at traits and characteristics that appear common to most people who start their own
businesses. Other studies focus on characteristics that seem to appear frequently in
First, consider those characteristics that seem to distinguish the person who opens a
business from the person who works for someone else. These studies investigated
successful and unsuccessful owners, some of whom went bankrupt several times.
Some were successful only after the second or third try. The characteristics they share
might almost be said to predispose a person into trying to start a business. Of course,
not all of these characteristics appear in every small business owner-manager, but the
following seem to be most predominate.
Strong Opinions and Attitudes
People who start their own business may be members of different political parties, feel
differently about religion, economics and other issues. They are like everyone else. The
difference is they usually feel and express themselves more strongly. This is consistent.
If you are going to risk your money and time in your own business you must have a
strong feeling that you will be successful. As you will see later, these strong feelings
may also cause problems.
If you want to start your own business you probably have mixed feelings about
authority. You know the manager must have authority to get things done, but you're not
comfortable working under someone. This may also have been your attitude in a
scholastic, family or other authority structure.
If you want to open you own business you are likely to have a strong "Need for
Achievement". This "Need for Achievement" is a psychologist's term for motivation and
is usually measured by tests. It can be an important factor in success.
The person who wouldn't think of starting a business, might call you a plunger, a
gambler, a high risk taker. Yet you probably don't feel that about yourself. Studies have
shown that very often the small business owner doesn't differ from anyone else in risk
avoidance or aversion when measured on tests. At first thought this seems
unreasonable since logic tells us that it is risky to open your own business. An Ohio
State professor once explained this apparent contradiction very simply. "When a person
starts and manages his own business he doesn't see risks; he sees only factors that he
can control to his advantage."
If you possess these traits to some degree or other it doesn't mean you will be
successful, only that you will very likely start your own business. Some of these
characteristics in excess may actually hamper you if you are not careful.
What are the best books for entrepreneurs?best books for entrepreneurs 1:Think and Grow Rich by Napoleon Hill,2:How to Win Friends and Influence People by Dale Carnegie,3: the 4 hour.
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