How to Start buissness

8/11/2019 How to Start buissness

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How to Start a Small BusinessSetting Out the BasicsWriting a Business PlanCovering the Legal SideManaging YourFinancesMarketing Your BusinessLaunching your Business

Edited by Ben Bardot, Eliabeth !ouglas, "unt B#, Ben $ubenstein and %& others"re you one o' those (ho drea) o' o(ning your o(n business* You+ll be your o(n boss, and thecatain o' your destiny-.)aybe even a catain o' industry# /s it hard* Without a doubt# /s itchallenging* "bsolutely# !o you have to be (ealthy and (ell0educated (ith a lengthy resu)1* 2otat all3 Can you do it* "s the )agic 40ball says, 5"ll signs oint to yes35 So ho( do you do it, and)ake it (ork* Plan, lan, lan3 6here are so)e tried and true (ays head do(n the ath o' creatingyour o(n business, and there is no ti)e like the resent to get started3

Steps

Part 1 of 6: Setting Out the Basics

7#

7Have an idea./t )ight be a roduct you+ve al(ays (anted to )ake, or a service you 'eel

eole need# /t )ight even be so)ething eole don+t kno( they need yet, because it hasn+tbeen invented3

/t can be hel'ul-.and 'un-.to have eole (ho are bright and creative 8oin you
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'or a casual brainstor)ing session# Start (ith a si)le 9uestion like: 5(hat shall (ebuild*5# 6he idea is not to create a business lan, 8ust to generate so)e ideas# Manyo' the ideas (ill be duds, and there (ill be 9uite a 'e( ordinary ones, but a 'e( (ille)erge that have real otential#

"d

;#

;Define your goals.!o you (ant 'inancial indeendence, eventually selling your business tothe highest bidder* !o you (ant so)ething s)all and sustainable, that you love doing and(ant to derive a steady inco)e 'ro)* 6hese are the things that are good to kno( very early

on#


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8oin you* 6his brings a lot o' synergy to the table, as eole bounce ideas o'' each other#6(o eole together can o'ten create so)ething that is greater than the su) o' the t(osearate arts#

6hink o' so)e o' the biggest success stories in recent ti)es include >ohn Lennon and

Paul McCartney? Bill @ates and Paul "llen? Steve >obs and Steve Woniak? andLarry Page and Sergey Brin# /n every case, the artnershi brought out the best in

both sides o' the e9uation, and every one o' the) beca)e billionaires# /s aartnershi a guarantee o' being a baillionaire* 2o, but it doesn+t hurt3

A#

Ahoose wisely.When choosing the erson or eole you+re going to build the business (ith,

be care'ul# Even i' so)eone is your best 'riend, it doesn+t )ean that you (ill artner (ell ina business oeration# 6hings to consider (hen choosing your co0leaders and suort castinclude:

!oes the other erson co)le)ent your (eaknesses* Or do both o' you bring only

one set o' the sa)e skills to the table* /' the latter, be (ary as you can have too )anycooks doing the sa)e thing (hile other things are le't unattended#

!o you see eye to eye on the big icture* "rgu)ents about the details are a given,

and are i)ortant 'or getting things right# But not seeing eye to eye on the bigicture, the real urose o' your business can cause a slit that )ay be irrearable#Be sure your tea) cares about the and buys into the urose as )uch as you do#

/' intervie(ing eole, do so)e reading on ho( to sot real talent beyond thecerti'ications, degrees or lack thereo'# Peole+s innate talents can o'ten be so)e(hatdi''erent 'ro) the conventional education strea)s they+ve ursued or 'ailed to and
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it+s i)ortant to look 'or 5click5 you get along (ith the) and latent talents as )uchas aer credentials#

Part " of 6: #riting a Business Plan

7#

7reate a $usiness plan# " business lan hels to de'ine (hat you think you need to launchyour business, large or s)all# /t su))aries the sense o' your business in a single docu)ent#/t also creates a )a 'or investors, bankers, and other interested arties to use (hendeter)ining ho( they can best hel you and to hel the) decide (hether or not your

business is viable# 6here are seriously good books available on (riting business lans thatcover )any chaters, and you should avail yoursel' o' at least one o' these as a guidebookshos, libraries and online are good laces to 'ind these# /n a nutshell, your business

lan should consist o' the 'ollo(ing ele)ents:;#

;ome up with an e%ecutive summary.6here (ill need to be several basic arts in your

business lan# 6he 'irst is the eDecutive su))ary# !escribe the overall business concet,ho( it (ill be )onetied, ho( )uch 'unding you (ill need, (here it stands currently,including its legal standing, eole involved and a brie' history, and anything else that)akes your business look like a (inning roosition#


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into the )arket in general# Who (ill you be selling to, and ho( (ill you deliver yourroduct* /' you are a cororation, LLC, or sole rorietor shi, state that, and (hy you choseto go that route# !escribe your roduct, its big 'eatures, and (hy eole (ill (ant it#

=#

=ome up with some mar!eting strategies.You mustkno( your )arket i' you are to besuccess'ul, so send a great deal o' ti)e analying 8ust (ho it is that (ill (ant your roduct,and ho( you lan on aealing to the) to take cash out o' their bank account and give it toyou# What is the sie o' your )arket, (ill there be oortunities to eDand the initial )arket,and (hat are your sales otentials* When you understand these variables, you (ant to sellthe) to the erson reading your business lan#

A#ADo a competitive analysis."s you develo the above sections, you (ill learn (ho your keyco)etitors are# Find out (ho is doing so)ething si)ilar to (hat you are lanning, and ho(have they been success'ul# >ust as i)ortant is to 'ind the 'ailures, and (hat )ade theirventure 'all aart#

##rite your development plan.o( (ill you create your roduct* /s it a service that youare o''ering, or i' it+s )ore co)leD-so't(are, a hysical roduct like a toy or a toaster-(hatever it is, ho( (ill it get built* !e'ine the rocess, 'ro) sourcing ra( )aterials to

asse)bly to co)letion, ackaging, (arehousing, and shiing# Will you need additionaleole* Will there be unions involved* "ll o' these things )ust be taken into account#
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&Plan your operations.Who (ill lead, and (ho (ill 'ollo(* !e'ine your organiation, 'ro)the recetionist u to the CEO, and (hat art each lays in both 'unction and 'inancials#Gno(ing your organiational structure (ill better hel you lan your oerating costs, and'ine0tune ho( )uch caital you (ill need to 'unction e''ectively# Gee in )ind that your

business (ill continue to evolve and that this (ill be a rough idea o' (ho is needed to kee

things 'unctioning? as the business gro(s, you+ll likely )ake changes to the hiring lans to'it (hat is haening at the ti)e# "lso, in a nu)ber o' cases, the 5sta''5 is you and(ho)ever you can consult, such as your la(yer and accountant# 6his is 'ine, as long as yousho( that you+re reared to ay 'or eDternal advice and hel until your business is ready totake on sta''#

4#

4over the financials.Succinctly, this describes ho( )uch you lan on sending, and ho()uch you+re )aking# Since this is the )ost dyna)ic art o' your lan, and erhas the )osti)ortant 'or long0ter) stability, you should udate this )onthly 'or the 'irst year, 9uarterly'or the second year, and then annually a'ter that#

Part & of 6: overing the 'egal Side

7#7

onsider finding an attorney or other legal advisor.6here (ill be )any hurdles to lea asyou go 'ro) (orking sti'' to over(orked and underaid s)all business o(ner# So)e o'those hurdles (ill be co)osed o' stacks o' docu)ents (ith rules and regulations, ranging
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'ro) building covenants to city ordinances, county er)its, state re9uire)ents, taDes, 'ees,contracts, shares, artnershis, and )ore# aving so)ebody you can call (hen the needarises (ill not only give you eace o' )ind, it (ill give you a )uch0needed resource (hocan hel you lan 'or success#

Choose so)eone (ith (ho) you 5click5 and (ho sho(s that he or she understands

your business# You (ill also (ant so)eone (ith eDerience in this area, as an

ineDerienced legal advisor could lead you to legal trouble or even 'ines and risonti)e#

;#

;(et an accountant.YouHll (ant so)eone (ho can de'tly handle your 'inancials, but even i'

you 'eel you can handle your o(n books, youHll still need so)eone (ho understands the taDside o' running a business# 6aDes (ith businesses can get co)licated, so youHll need at a)ini)u) a taD advisor# "gain, no )atter ho( )uch o' your 'inances theyHre handling, thisshould be so)eone trust(orthy#


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" li)ited artnershi, (hich is co)osed o' a 'e( general artners, (ho are liable

'or roble)s (ith the business, and a 'e( li)ited artners, (ho are only liable 'orthe a)ount in (hich they invest in the business# "ll share ro'its and losses#

" li)ited liability artnershi LLP, (here no artner is liable 'or anotherHs

negligence#

Part * of 6: +anaging ,our )inances

7#

7over your startup costs.o( are you going to 'inance your business initially* 6he bank,

venture caitalists, angel investors, S)all Business "d)inistration SB", your o(nsavings: these are all viable otions# When you start a business, be realistic# You (ill

robably not roll out o' the gate )aking 7KK ercent o' (hatever you ro8ect, so you need tohave enough ready reserve to 'und things until you are really u and running# One o' thesurest roads to 'ailure is under0caitaliation#

$e)e)ber the 'our F+s 'or invest)ent: 'ounders eole (ho share your idea,

'a)ily, 'riends and 'ools;#

;Have more than the minimum.You )ay deter)ine it (ill take AK,KKK to start your

business, and that+s 'ine# You get your AK,KKK, buy your desks and rinters and ra()aterials, and then then the second )onth arrives, and you+re still in roduction, and the rentis due, and your e)loyees (ant to be aid, and all the bills hit at once# When this haens,your only likely recourse (ill be to ack it in# /' you can, try to have the reserves 'or a year
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o' no inco)e#


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da)aging the environ)ent# Certi'ication endorse)ents 'ro) reutable organiations,such as labels and stars, can reassure custo)ers that your roduct or service is )orealigned (ith their values than one lacking the certi'ication#

#

+anage your running costs.Gee a close eye on your running costs and kee the) in line(ith your ro8ections# Whenever you see so)ething sent (aste'ully-like electricity,

hone lans, stationery, ackaging-look around, and esti)ate ho( )uch really need, and)ini)ie or re)ove the cost in every (ay ossible# 6hink 'rugally (hen you start u,including hiring ite)s instead o' urchasing the) and using re0aid lans 'or services your

business needs instead o' locking yoursel' into long0ter) contracts#

&)ind a way to get paid# You (ill need to do so)ething to get ay)ent 'ro) your clients orcusto)ers# You can get so)ething like a S9uare, (hich is great 'or s)all businesses since itre9uires the )ini)u) a)ount o' aer(ork and the 'ees are )ini)al# o(ever, i' you 'eelunco)'ortable (ith technology, you can go the old 'ashioned route and get a )erchantaccount#

" )erchant account is a contract under (hich an ac9uiring bank eDtends a line o'

credit to a )erchant, (ho (ishes to accet ay)ent card transactions o' a articularcard association brand# Previously, (ithout such a contract, one cannot accet

ay)ents by any o' the )a8or credit card brands# o(ever, the S9uare has changedthat, so donHt 'eel locked in or li)ited to this otion# !o your research#

6he S9uare is a card s(iing device (hich connects (ith a s)arthone or tablet and

turns that device into a sort o' cash register# You )ay have encountered this device in
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the businesses you 're9uent, as they are beco)ing co))on at co''ee shos,restaurants, street 'ood stands and other businesses look 'or a ostage0sta) sied

lastic s9uare lugged into a tablet or hone#

Part - of 6: +ar!eting ,our Business

7#

7(et a we$site# /' you+re selling online, get your eco))erce in gear and either build a(ebsite, or have one built 'or you# /t+s your store'ront, so anything and everything you cando to )ake eole wantto visit, and wantto stay, do it#

;#;Hire professional designers.6hey )ay cost )ore initially, but a (ell resented andtrust(orthy site is essential# /t needs to look ro'essional and (ork (ith ease# /' you areincluding )oney transactions, invest in security encrytion and check that your )oneytrans'er co)anies are sound and reliable#


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satis'ied says it all and is so)ething you can say readily# 6hen ractice it like cray3 ave interesting, eye0catching business cards rinted#

=#

=Spend time developing an e%cellent social media presence.6his can be done (ell be'orethe business is ready, increasing anticiation# se Facebook, @oogleN and 6(itter, and anyother social )edia you articiate in to build eDcite)ent and sread the (ord# You (ant to

build a bu so that eole (ill begin 'ollo(ing your rogress# Be sure to choose businessaccounts 'or your business and kee your ersonal accounts searate# 6he )essages yousend should be tailored di''erently, deending on (hich account you+re sending 'ro)#

A#

Amplement your mar!eting and distri$ution plans.With your roduct being built orservices develoed, and a reasonable eDectation on (hen either is ready 'or selling, begin)arketing# /' you (ill be advertising in eriodicals, they (ill need coy or i)ages at leastt(o )onths in advance o' ublication# /' you (ill be selling in stores, get re0orders sold,and shel' sace allocated# /' you (ill be selling online, get that e0co))erce site ready tosell# /' you+re o''ering a service, advertise in aroriate trade and ro'essional 8ournals,ne(saers and online#

Part 6 of 6: 'aunching your Business

7#7Secure space.Whether it+s an o''ice, or a (arehouse, i' you need )ore sace than your
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garage or your sare bedroo), no(+s the ti)e to get that# /' you don+t generally need an o''ice beyond your ho)e, but )ay occasionally need

)eeting sace, there are o'ten laces do(nto(n that can address those needs# "9uick @oogle search on 5business )eeting rentals Iyour citystateJ5 (ill deliver

lenty o' rental otions in your area#;#

;Build your product or develop your service.Once you have the business all lanned,'inanced, and have your basic level o' sta''ing, get going# Whether that+s sitting do(n (iththe engineers and getting the so't(are coded and tested, or getting )aterials sourced andshied to your 'abrication roo) aka 5garage5, or urchasing in bulk and )arking u the

rice, the building rocess is the ti)e during (hich you reare 'or )arket# !uring thisti)e, you )ay discover things such as:

2eeding to t(eak the ideas# Perhas the roduct needs to be a di''erent color, teDture

or sie# Maybe your services need to be broader, narro(er or )ore detailed# 6his isthe ti)e to attend to anything that cros u during your testing and develo)ent

hases# You+ll kno( innately (hen so)ething needs t(eaking to )ake it better or to)ake it less like a co)etitor+s stale o''erings#

@etting 'eedback# Friends and 'a)ily )ake great resources 'or asking 9uestions and

getting 'eedback..don+t hesitate to use the) as your sounding board# 2eeding to increase the sie o' your re)ises# 6his haens )ore o'ten than

eDected# Once the stock starts iling u, you )ay 'ind it ends u in your livingroo), bedroo) and the garden shed# 6hink rental o' storage re)ises i' needed#


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How to Start buissness

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