Are you still employed for the moment but thinking of starting small businesses? Or are you still wondering if starting a small business is good for you? Well, I hope after going through this page, your above questions will be answered and you will discover solutions in starting and running a small business.
According to the Small Business administration, “50 percent of new businesses in the U.S. fail within the first four years. Also, there is above 28 million small business in the United States that makes up to 99.7 percent of all U.S. businesses.
There are many reasons why anyone will want to start a small business, but it is also important that you understand what works and doesn’t work in starting a small business. In fact, both aspects are equally important to note before starting or running your small business
Why Most People Wish to Start a Small Business
There are so many reasons why you can decide to start businesses. These reasons can be any of the following points;
- Building financial independence.
- Having a unique business idea
- Earning income
- Having flexible hours
- Making good use of your best skills
- Building a career that has the potential of growing with you.
These are some of the reasons why individuals may want to start a business. However, not all small business succeeds. So, in almost any of the above reasons for started a small businesses, there’s a lot to consider before just jumping in and running a small businesses.
For this reason, we will be sharing some steps to take in starting businesses.
- Firstly, Make sure you do proper research on the Business: maybe you have a potential businesses idea; it is still needful that you check if it’s feasible. Also, endeavor to ask questions about the nature of business. Checkout for the following point; consider who needs your product/ services, your market strategy, your competitors, and also how your business fits the market.
- Write Down your Plan: this plan will help you in starting and running your small business. Actually, the two factors that are popularly mentioned for a fail business are poor capital and poor planning. So, planning is a must in bringing your business to a reality. In the same vein, having a business plan will guild you from the start of your business to the development and maturity stage.
- having good capital in starting a business is very important especially in the initial stage when you haven’t gained profit yet. So, make sure you plan for funds in running your business. From paying for rents, licenses, and legal fees, branding, marketing, and the list go on. Although, starting a small business may not require much money but you will need substantial money you can use for the starting process. If you don’t have any money in starting a small business you can also apply for small business loans, business grants or you may consider having an investor.
- Obtain a Business Name: your business name plays a great role in the branding of your business, make sure you take your time in deciding on the kind of business name to choose. After choosing a name you are to check if its trademark is in use before registering it. Also, endeavor to register your domain name.
- Deciding on a Business Structure: consider what kind of legal business structure works for you. Above all, the three basic structures are; sole proprietor, partnership, and a corporation. Equally, each of these business structures has its own effects on your business. You can as well consult an attorney or business expert if you’re still not sure of the business structure.
- Obtaining License and Permits: small business licenses and permits are needed in starting your business. Permits are required for all states that collect the tax. So, depending on the nature of your business you can choose the kind of small business licenses and permit that suit you. With this in mind, I will suggest that you make research to discover the licenses and permit that suit your kind of business.
- Decide an accounting System: the goal of having your accounting system is to enable you to manage or monitor your budget, filing taxes, setting rates, and prices for running your small business. Meanwhile, you could even employ an accountant or you can start by running it yourself with accounting software.
Deciding your Business Location:
before thinking of running a business you should first consider the type of location. Similarly, check if the location is accessible and also check the kind of office. Your office could be a home office or a private office. Above all, make sure the location is part of your plan in your preparation for starting a small business.
- Running a Team: after considering the above checklist in starting your business, you will also need to have a functional team that will help you in achieving your business goals. For this purpose, you can employ your first workers that will be useful for your business. On the other hand, if you don’t want to hire workers, you may get contractors that will help you. So, you can get an attorney that will help get your independent contractor agreement. Although, if you are a sole proprietor you may not need to employed anyone, I’ve got to say you may still need support or help from your family or loved ones.
- Creating a Market Strategy: once you have started the running of your small business, there is still a need for marketing so you can make profitable sales. Having a unique market plan makes this journey easy for you. So, this is something to consider. There are many small business market strategies you can use for your own business. In fact, you can even make research on this in your business plan.
If you study the likes of successful business owners, you will discover their willingness to develop themselves continually and also in learning from any of their mistakes. Eventually, the going may get tough for you in your small business. For this reason, I suggest that you keep friends or family that will also motivate you. Although, you can as well maintain your initial drive in running your business so that you and stay focus on your business. But If your business fits your unique skill and has a good business plan you can be a successful small business owner.