| Issues To Consider In Starting A Business | |
| Familiarity | |
| You should be familiar with the business you're starting, ideally having worked in the same sort of business. If you don't have experience in the business, consider hiring a consultant with experience to help you get the business started. It will cost you a few thousand dollars but will be money well spent. | |
| Adequate Capital | |
| You should
have enough money to get you through the first year. Here's a sample of a simplified cash-flow projection. |
|
| Marketing | |
| You should
have a plan and a budget for marketing. Types of marketing you may consider. |
|
| Know Local, State & Federal Rules & Regs | |
| Before you begin the business, learn about licensing, business permits, and your obligations for tax collection, payroll, etc. | |
| Be prepared to work long hours | |
| Most small business owners put in long hours. 60-hour weeks are not uncommon. | |
| Buy a franchise? | |
| Franchise failure rates, according to some sources, are as bad as (or worse than) independent business startups. If you're looking for a pre-planned business where somebody else controls much of what you do, then maybe a franchise is for you. If you're looking for a business where you'll be paying money off the top to somebody else (whether or not you make money), then maybe a franchise is for you. Contrary to what many believe, a franchise does not guarantee success. Franchise-Forum.com | |
| Hope for the best, plan for the worst | |
|
Be conservative with your financial projections. It takes time for any business to become established, so you should make your planning based on receiving no income initially. Be sure you have adequate money available to pay your bills--at least for the first six months to a year. A sobering fact: About 90% of all new businesses never make it to year 6. If you are to make it,
remember the most important factors: |
|
Custom Search
|
