The benefits to starting a small business are many and, in the digital age, getting started has never been more economical. Still, it’s a big leap. If you think you’re ready to pilot your own future, here are a few key tips from the U.S. Small Business Administration.
DO YOUR RESEARCH
Whatever you decide to create or sell, keep in mind that it doesn’t have to be the first of its kind. In fact, many of the most successful small companies were founded on an innovative improvement on something that already exists. Either way, it’s important to research the market before entering. If the field is already crowded with similar products or services, you might need to continue developing your idea.
HAVE A BUSINESS PLAN
Once you’ve gotten past the research phase and are confident that you have a place in the market, you’ll need a roadmap. It’s easy to forget the big picture in the early days of starting a small business, because there is simply so much to do. A good business plan could also help you get ahead with recruiting team members and potential investors.
SECURE FINANCING
Part of your plan will involve designating the exact amount of capital needed to get your small business up and running. Be honest about the costs, because you may need to seek outside funding. Lenders or investors will want a full accounting of outgoing money, along with projected income, before deciding to back your idea. If you’re using your own money and come up short, you could be putting your personal solvency at risk.
FIND A LOCATION
Many of the hottest new startups are beginning life in an entrepreneurial dreamer’s living room. But if your plan includes a brickand-mortar site, begin looking early. This process could take a while depending on the real-estate market in your area. Look for a highly visible location that isn’t too large for your immediate needs. Remember to factor in property taxes and associated municipal fees when deciding on what you can afford.
GET LICENSING AND PERMITS
In order to operate legally, owners are required to apply for and hold a variety of permits and licenses. The specifics depend on your locale, so check with local officials. You will also need to obtain a tax ID, which works like a Social Security card for your new small business.
Content by Green Shoot Media
