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Businesses come in all shapes and sizes. Some business owners
started as kids, selling lemonade on the side of the street,
while other business owners have bloomed later after years of
careful planning. Whatever stage of life you're in, owning a
business can be one of the most rewarding experiences you'll
ever have. Starting a business is not for everyone though.
Starting a business requires inspiration, hard work, planning
and persistence.
Inspiration
The inspiration of business owners can range from not having a
boss, to making more money to improving the local community, to
any number of other motivations. Whatever the reason, having
strong inspiration will help you get through anything, including
starting a business.
Brainstorm
After you've been inspired to start your business, brainstorming
is a good next step. What do you like doing? What does the world
need? What can you provide that others can't or haven't? After
you have a bunch of ideas, think up some more. It is, after all,
the unique idea that often makes a business financially
successful.
Research
Finding out what potential competitors are up to can give you
ideas and also help define how your business will be different
from others. Market research can help determine what products
and services to offer. Further more, reading up on a variety of
business topics, like advertising, marketing, management, unique
selling points and more, can give you a huge edge.
Funding
Most businesses require some sort of funding to pay for all of
the things listed above. In today's world, where an EBay account
can be opened and items listed for next to nothing, don't be
fooled into thinking that starting a business is going to cost
tons of cash. Some businesses will require serious money to be
invested upfront, while some home-based businesses can require a
few hundred bucks or less.
After making estimates of your expenses, you will have a goal as
to how much you will need to run your business. If your new
business is going to be your only source of income, it is best
to have at least two years of savings to allow your business
time to become profitable. If you will have another source of
income, such as a part time job, then you may have more
flexibility in allowing your business the time it needs to float
on its own.
Funding can come from savings, bank loans, friends and family,
investors, donors, credit cards or other options. It seems
better to over estimate your needs than to underestimate them
and be left with not enough cash.
Revenue Flow
How will your business make money? If it is selling a product,
how much will actually be made from each sale? When making this
calculation and factoring in overhead estimations one can then
determine how much needs to be sold to break even. Don't sell
yourself short because you're a new business.
Legal
There are hundreds of laws that pertain to running a business.
To understand and abide by all of these laws, legal consul is in
order. Consulting a lawyer will also help protect your business
with properly written contracts, terms of services,
nondisclosure agreements and the likes of such. It is much
better to have the confidence of having consulted with a lawyer
than to wait until you really need one, when the damage has
already been done. A poorly written contract, or no contract at
all, can cost a business huge sums.
Employees
Having employees opens the door onto new realms of legal issues
including tax withholdings, worker's comp, rules regarding
minimum wage, overtime, required postings, record keeping and so
on and so on. Having a specialist to handle these factors is
very helpful to companies employing more than the owner.
Accounting
Software like Quick Books and Quicken can help the small
business owner keep track of business accounts much more easily
than without. Still, using a good CPA is highly recommended for
helping uncover expenses and rebates and giving you peace of
mind should you ever get audited.
As with all things, going for the cheapest business solutions
will often cause a headache down the road. Spending a little
more on an experienced professional, complete with references,
goes a long way when you really need it to. Choosing a lawyer,
CPA or Payroll Company based on cost alone can get you in big
trouble. There are reasonably priced professional services out
there, but make sure to shop around for one with good references
and qualifications before choosing.
About the author:
Halstatt Pires is with the Internet marketing firm - MarketingTitan.com -
an Internet marketing company in San Diego, which offers online
database solutions through BusinessCreatorPro.com for ecommerce.
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