How To Start A Small Business

Virtually everybody want to start a business.However the hardest part is where to start. Here we shall explore on how one can start a small business.

1. The Business Ideas

 
To start a business you will need to come up or create a business idea. While this is an obvious input many people who want their own business have no iota of an idea. If you wish to be an entrepreneur, there are myriad of options; buying  an already setup business, or seeking from others for ideas for a start-up business. Once you have decided on the business you wish to establish, then the work begins as soon as you decide what is it that you want to venture into. 

 2. The Business Plan

  

Compiling a business plan is your next and pivotal step, this is how you and others will evaluate your business. When seeking financing, lenders will want to read your plan before they advance you the funding. If you're financing the business yourself, you will still want to have a written plan to develop business strategies and financial projections. A key element within the business plan is the marketing plan, which explains marketing strategies that will be used to publicize and promote the products or services. The goal setting section of the plan will help you to analyze the success of the business in future  and clearly illustrate the capital needed to operate the company so as to  break-even. 

3. The Financing

 
Now that you have your business plan at hand, you are ready to go out there to find capital required. In almost all cases,most small businesses have three main options to source for financing:

(a) friends & family

(b) Investment organizations/Investors or loans from  banks. Each of these options has different considerations for the business. Investors and even friends & family in most cases want a share of ownership and control in the business. Bank loans burden the business with an additional expense of the loan payment, which  erodes the business profits for a given period .

4. Getting started

Now that you have got the plan, the funding and the enthusiasm/interst; you need to  address the lega issues before you say you are ready.As with almost everything you need to take the legal issues into  a keen consideration. The important fisrt step is coming up with would be legal structures: This is informed what type of business you are pursuing,that is; Sole Proprietorship, Partnership, or Corporation. Your financing decisions will have an effect on what legal structure you choose. Now you can file with the state to incorporate and obtain a federal or registraton Identification number. 

5. Opening the Doors

After the regourous 4 steps its time to get on the road to start implementing your business plan; this of course means spending money. key issues must be addressed here.ie Where are you going to run your business? Will it be at home office,or is commercial space needed to service your customers? Do you need to hire employees to help you run the business? What are your bookkeeping needs, do you need an accountant? Finally, do not forget about  taxes, what taxes do you have to pay and collect? Now that your business is through the start-up phase, you can now look forward to the issues of managing a small business.