As we all know, all types of business require three basic things: motivation, determination, and technical and practical know-how.
Here are the 10 commandments of effective small business start-up.
1. You have to identify your business prospects.
Choosing the type of business may be a task that may keep you stagnant as you are faced with an array of opportunities. However, there are a lot of business information aids that can help you sort out the topnotch business ventures. The least you have to do is to identify your entrepreneurial type of personality and lifestyle so you can choose among the range of business ideas.
Just think of it, this is the first but crucial step to start a new business in your journey to success.
2. You have to build a business map.
A business map will enable you to have better grasp of:
a. competitive landscape;
b. industry structure; and
c. the main necessities of starting a small business
3. You have to give a name for your business.
Think of a name that will serve as your trademark. It should start a new business :
a. assist in the branding of your organization
b. set you apart from a sea of competitors
c. attract your customers and provide them enough reason to choose you
4. You have to choose a business configuration.
Look for the most appropriate ownership configuration for your business. You may wish to research on the following legal structures:
a. sole proprietorship
c. S-type corporation
d. a company that has limited liability
5. You have to register your business.
You have to go through a lot of paperwork and know tons of regulations. For instance, you need to be aware that the office of State’s Secretary registers LLCs, corporations, partnerships, and even items of dissolution. Starting a small business requires the usual paperwork and regulations.
In addition, you need to secure an employer identification number or EIN so that taxing authorities can identify your business.
6. You need to secure start-up money.
Most small businesses are not actually funded by venture capitalists, grants, and even banks. There are times that you need to gather money from other sources such as personal investments, funds from family and friends, and even being involved in bartering.
7. You have to determine your business location.
If you have decided to put up a home business, decide on the best home design that will surely motivate you and your crew to become productive. If home business is not your choice, survey on office spaces that are available. In addition, do not forget to research and review about the advantages and disadvantages of buying or just leasing an office space.
8. You have to get your business insurance.
As a budding business proprietor, you need to keep in mind that it is your responsibility to supervise the dilemmas and dangers associated with your ownership. You have to guard your business against litigation and/or disaster.
9. You have to create an accounting system.
Bookkeeping and accounting are some of the aspects that are inevitable when it comes to managing a business. You have to deal with the financials of your business so you can plan-out a strategy to achieve maximum return of investment or ROI.
10. You have to know how to please your customers.
Knowing what your customers need can really be rewarding. When you are able to please them, you have their loyalty. In addition, they may invite other friends to become your potential customers.