Anyone who is considering starting a business should allow plenty of time for planning and solid preparation. The first question one should consider is what is to be gained by starting a business. Getting a business off the ground requires determination and persistence, so the prospective business owner must be well motivated in order to keep on going in the face of initial setbacks or slow progress. A clear motive is essential in order to maintain enthusiasm for the new pursuit.
Having determined that there is a sincere desire to start and operate the new endeavor, the entrepreneur is ready to define the business. This task is easier with the purchase of a franchise. Product, service, and system have already been developed. New franchise owners will undergo a training period when they will learn how to operate a business model that has already been successful. Market research will help determine the possibility of success for a business idea. Even a franchise that has gone well in one market may fail in another.
Freelancers must define their own business. When sources of income come and go, the ability to stay organized and to prioritize assignments is key. Above all, clients of freelancers expect work to be delivered on time, error-free, and to specifications. The freelancer must also define the space in which he will offer services or products, and use his imagination to build a brand and acquire clients.
Stand-alone businesses represent a big risk in terms of investment, but they can be a dream come true for people who have always wanted to run their own, personally designed companies. Hanging out one’s own shingle is an act of courage, especially if the business has the owner’s name on it. John J. Smith Widgets succeeds or fails with John’s name attached.
Adequate Capital Investment
Starting a business requires capital investment. A prospective owner must start with a business plan that includes all anticipated expenses, sources of capital, and sources of income during the start-up period. Expenses include purchase of vehicles, office or manufacturing space rental, business cards and stationery, shirts and other apparel, advertising, office equipment such as computers, printers, and fax machines, business software, phone service, legal fees, materials costs, and more.
If a loan is required in order to start the business, a well-developed plan will help a lender decide in favor of the applicant. Organizations such as SCORE are excellent sources of information and support for people who are seeking information on small business plans and operations.
Legal Questions about Starting a Business
The new business owner should select a name for the business early in the process, and then be sure to use that name consistently. This practice eliminates the possibility of confusion should any legal issues arise. There will be no question as to whether John J. Smith Widgets, John’s Wonder Widgets, and Smith Widget Company are one and the same.
It is a good idea to consult an attorney on matters concerning incorporation. An attorney will help set up the business entity so that the owner will have maximum protection against liability. While fees might seem steep initially, the peace of mind that comes with knowing that the business is starting off on firm legal ground is worth the investment. This will also establish a relationship with legal counsel that will serve the business well when future questions develop.
Be Your Own Boss
The person who starts his own business hires himself. This is not the opportunity to become a free spirit who has no one telling him what to do. He must tell himself what to do. Business owners must plan, execute, evaluate, and stay on task regardless of distractions and disappointments. They must maintain a constant watch on finances, paying themselves and any employees a reasonable wage and being sure to invest profits wisely in order to ensure future success and growth for the business.
In return for all this hard work and discipline, successful entrepreneurs will enjoy the satisfaction of becoming the directors of their own working endeavors and the security of knowing that their businesses are in good hands – their own.
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