Bright idea to Big Business: Five Beginner Tips
Some of us have dreams of owning a business. We have some special gift or talent that we
have that we want to capitalize on or just something we enjoy doing. Some of us have done the entrepreneur thing
before and maybe were not as successful as we wanted to be. ----- (That would
be me). Some of us are just tired of working for
someone else and want to make our own money.
Whatever your reasons there is a point in time when that idea must
become a reality.
Here are five tips for those that just need help getting
started.
First you are going
to be the expert in your business so be and expert and educate yourself on your
industry. Market research can be really insightful, especially about the future
of your business/ industry. It would be
very uninformed to go into the DVD rental business right now because the
industry is declining rapidly and the market is drying up for this type of
business. If you are determined to get
in this industry then gaming and Red Box leasing might be a better place to
start researching.
There are some legal and structural things that must happen
in the beginning or start up phase of a company, to help you to stay compliant, advertise, and
be in business. The best “worst” advice
out there is to just start selling something …..”Just go out there and do it”. Well, an experienced business person will
tell you this is almost the worst thing to do first. The very first thing you should do as a
person going into business is ask questions…lots of them.
I have given you a couple that are kind of universal to
start your mission.
- Do I need a business license to do this? ( Call your County Business License Office)
- What industry am I in? What are the demographics of my customers?
This information can be found by doing
some industry research at the local library, college, or Chamber of Commerce. Depending on your finances, you could also
pay for industry reports which many market research companies publish. In every business there is a typical
consumer. You must know where to find
these people. The internet and social
media has made this task easier but still you have to seek this information
out. Also you must have your product and
or service ready to present to the customer.
· What is the best area for my business?
·
Who is my competition?
·
What documentation do I need to get licensed?
Most counties require identification, place of business
(POB), phone number, an agent (person responsible if trouble comes), a lease or
proper zoning, and an estimate of income from business. If you plan to get a bank account then most
will also require a business license, A Federal Tax Identification Number
(FEIN), and a state issued legal document.
This document explains the nature of your business and legal
structure. If you decide to do a sole
proprietorship then some of this is bypassed but remember you are taking
personal liability for anything that happens in this business and vice
versa. When a person says they lost
everything when they opened a business ….more than likely it was a sole
proprietor who risked it all for the business.
There are lots of questions to answer in the beginning…I
think that is why it is called the start up phase and not the start up day. The good news is that most of this
information gathering is useful now and in the future – especially since most
of these questions need to be answered for the business plan. The bad news is that it will take some
time.
There are some statistics out there that say 1 in 5 new
businesses fail in the first year …and the numbers are worse for the first five
years. The (untold) is most of those
businesses don’t follow the advice given, don’t know their business, and fail
to do their research first. If you get
through the first stages and you still want to go into business for yourself…then
you are well on your way to becoming a success story.
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