How do I Start a business ?
1. Understand the business.
Once you got a business owner on the phone. You need to learn the basics of the business plus any hints about being a success. Ask e following questions:
What things do you need to run the business? A restaurant, for instance needs ovens, a stove, cookware, dishes, a storefront, tables and chairs.
What kind of people do you need to run the business? A restaurant needs a waiter, a cashier, a cook, a dishwasher, a busboy, a bartender and so on.
What are the business’s major expense? Most businesses pay rent, electricity, gas and advertising. A restaurant also buys food and drinks, while a hardware store would need to buy inventory.
Where does the money come from? Restaurant makes money from sit-down customers, take-out customers, delivery, catering and bar sales.
What are the common “gotchas” that cause new people in the industry to fail?
What is absolutely necessary for success?
2. Prepare a Business Plan
Business Plan Pro software from Palo Alto Software is a great resource. It comes with 400 Business plans from many industries, and the plans give financial information for the various kind of companies. These plans will guide your examination of potential expenses and income, and you may learn some surprising things about your business.For example, you may find that some restaurants make nothing on their food, but all their profit come from drinks. Other restaurants make all their profits out of catering. Once you’ve seen the range, you can decide which makes sense for you.
Don’t copy a sample business plan’s numbers directly, though change them to suit your area and market. Rent in New York City is different from rent in Akron, Ohio. Any business whose primary expense is rent will have to be run differently in the two cities.
You will also want to talk to a lawyer who knows your kind of business there may be licensing of health requirements to be taken into account. For instance, in my city, there are a limited number of liquor licenses, and you just cant get one until some one else goes out of business. A lawyer can alert you to those little gotchas.
3. Make it happen
To make the business come alive, you need to gather the people, raise the money, rent the building and buy the supplies. You will be doing all these things at once, but money will usually need to come first.
There are many places to raise money. Though it’s budget has been severely slashed, the banks can help with small business loans. Thought larger banks some time offer limited small business resources, many smaller community- oriented banks can work with you to understand your personal situation and provide flexible financing that suits you.
You can also raise money from family and friends. Its a good way to lose family and friends :), but if you must do it, use a service like Circle lending to administer the loans and keep them objectively recorded and administered. Scout out good locations while you raising money, since rent is often your biggest expense and will affect how much money you need. It’s even more important if your business depends on walk-by traffic.
While you raising money start romancing people you want to join the company once you’re funded. Some of them may join on now, in return for stock and partial ownership of the venture. Also being scouting locations, finding ways to connect to distributors and suppliers, and basically getting your ducks in a line so that when the money comes in, you can start operations quickly.