Tax & Business Services
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Starting a Business Having your own business can be very rewarding, both personally and professionally, but it's also a lot of hard work. And, being a business owner means you're accountable for the failures as well as the successes. According to the Small Business Administration, approximately 580,900 small start-up businesses opened their doors in 2004 - and just as many closed them. Starting up a small business is difficult, so don't be discouraged if it takes a while for yours to get off the ground. And because about 50% of small businesses fail, you should be prepared for the worst if yours doesn't succeed. Here are some questions to ask yourself to determine if you've got what it takes to go into business: Are you the entrepreneur type? Business owners should be prepared for long hours, handling taxes throughout the year and tax preparation, small business bookkeeping, liability issues and much more. But as a business-owner-to-be, these considerations may pale in comparison to the thought of being your own boss. Here are some questions you may want to ask yourself regarding starting a small business: Am I mentally, financially and physically up for the challenge? This is a hard question to ask yourself. Although being a small business owner may be your dream, you'll need to be prepared to deal with a few nightmares along the way. Especially stress. Doing adequate research and following a detailed, yet flexible, business plan will help alleviate some of the night terrors. However, know that you may experience some hardships along the way. Why do I want to start my own business? What is my motivation? Money, power, a sense of personal accomplishment? What are your primary reasons for starting your own business? What experience or expertise do I have that is valuable? What do I not know? Separate what you know and what you're good at from what you don't know and what you know you're not good at. There's no shame in asking for help or hiring people to help you with the aspects of your small business that you may not be comfortable with. Afraid of small business bookkeeping? You can buy small business software to help you or outsource this work to a professional bookkeeper. Who would want to purchase my small business's product or service? You'll want to do some research on who would purchase your product or service. Marketing strategies vary whether you're selling to other businesses or to individual customers. What sort of competition am I up against? Research companies that offer services or products similar to yours, then brainstorm on how you can differentiate your small business from the pack. How will I finance my venture? No matter where you go for a loan, whether family, investors, and/or banking institutions, they'll all want to know one thing: How much money and resources are you contributing to the overall success of your start-up business? There are many creative ways to finance start-ups, including many government programs that offer assistance. Do I have the discipline to plan my business carefully so I can avoid mistakes? There are some things you can't plan for, but many problems can be avoided with some advanced thinking. Getting Started One key way to organize your thoughts about starting up a business is by developing a business plan. Writing a detailed plan about how you're going to succeed will help you make some tough decisions: Should you start your small business as part-time or full-time? Where will you get financing for your start up? How can you differentiate yourself from the competition? What's the market like in your area? What specific products and services are you going to provide? How will you make a profit? Once you've finished a solid small business plan, you'll have a better idea of how to start up your business and how to make it a success. |