Starting a Successful Business | sharingsmoke.com

So you?ve decided to start your own business. You have lots of ideas and want to jump right in and get started. Well, the first thing to do is take a deep breathe and think through the entire process before you invest any of your hard earned cash or the cash of others.

This article is design to help you think through the process of starting a new venture. Every new venture takes research, time, hard work and, of course, capital. It is important to work through all the ?what ifs? before you make the final decision to start any new endeavor.

Determine what the business will do

Decide what the business will actually do. To start a business you will need to select or come up with a completely innovative business idea. While this is an obvious step, many people who go into business don?t have an idea, only the desire to be an entrepreneur.

After you develop a realistic business idea, you need to create a business name. A good business name is essential to the growth and development of your business.

• It should reflect the activity of the enterprise.
• It should be memorable so your potential customers think of you when they want the product or service you offer.
• It should be easy to use so marketing doesn?t become an issue.
• It should create the proper mental image when heard by the customer. You don?t want to turn customers off by calling your bicycle repair shop ?The Flat Tire? or something equally deflating.

Remember, a lot rides on how well you position your business in the minds of prospective customers and creditors.

For the budding entrepreneur, there are many options: buying a franchise, purchasing or becoming a partner in an existing business, or simply using someone else?s ideas for a start-up business. Once you have determined the business you wish to start, the real work begins.

Develop a business plan

A viable business plan is an essential aspect of navigating the often tumultuous wars of the business world. Whether you?re a new startup, require additional funding, or need to monitor the current condition of your business, creating a business plan is the first step on the path to success. A developed business plan is an essential weapon in the arsenal of a startup venture. If you require any credit or other financing you will need to present your plan for review. But frankly, even if you are using your own capital, a business plan helps to keep you focused. Many new ventures fail simply due to a lack of direction.

With your business plan in hand, you are ready to seek outside sources of capitalization, if necessary. Generally speaking there are four basic financing options.

• Friends and/or family members
• Investors, including venture capital
• Loans from banks
• Government sources, such as the Small Business Administration (SBA)

There are drawbacks to each of these options. Often times, investors, even friends and family members, may want a say in the operation of the business. In the case of venture capital, they will more than likely make this a condition for getting the assistance. Loans carry with them the burden of not only the principle, but also interest. Government assistance, though possible, is probably the least likely alternative for most startup businesses. It?s important to choose your option wisely.

When looking at financing a business, the following points are critical:

• Make sure you compute the financial ?break-even point? for your business
• Determine the start-up costs for your business

Develop a marketing strategy

A key element within the business plan is the marketing plan, which delineates marketing strategies that you intend to use to advertise and promote the products or services. The goal setting steps of the plan help you analyze the process of doing business in future years and clearly illustrate the capital needed to operate the company to make a profit.

There are many marketing factors to be considered when starting a business. You must:

• Determine your target market and determine if the market has the economic ability to sustain your business. Don?t create a business for a market that doesn?t have the money to afford what you?re selling even if it is something they want or need.
• Find resources for gathering and evaluating demographic data and information about your customers.
• Learn about your business competitors. Will you be able to out market them to overcome their current market position?
• Learn about marketing trends in your business industry. Is the market expanding or contracting?

Structuring your business

Okay, you?ve created your plan, you have the financing in place and you have the required level of enthusiasm for the task at hand. It seems like you?re ready to begin, right? Not quite yet. You still need to consider the legal issues. You need to select a legal structure, i.e. Sole Proprietorship, Partnership, or Corporation. Your financing decisions determine your choice of legal status. If you are not a sole proprietor you will have to get a federal tax id number and file with the state to incorporate if you choose that structure. Make sure you understand the tax requirements associated with the business structure you select. You may also need to look into getting:

• Special license requirements or permits, and how to obtain them
• An EIN (Employer Identification Number )

Determine what technology is required to operate and manage the business

More and more commerce is transacted digitally. Depending on the nature of your business, you might consider some kind of presence on the World Wide Web ? if not a full blown catalog/merchandising apparatus, at least a promotional/advertising presence. In other words, you will need a good website.

There are a number of options available to startups to get their website up and running. First of all, you want your customers to feel secure in transactions, because every customer will be conscious of the financial danger and the potential for abuse of their identity. So make sure you find a reliable hosting service. Nothing drains consumer confidence like a site that is always out of commission.

When selecting an ISP, make sure there is proper support to assist you when creating your site. If you take the Web-hosting ads at face value you would believe that you can have your site up and running in a few minutes. This may not be the case. Be sure to do your homework.

• Learn about software for managing and operations.
• Determine what IT personnel will be required. Can you do it yourself or will you need to hire employees or consultants?

Final Word

These are the rudimentary requirements for starting a business. They are by no means all the factors involved with a startup, but if you begin your journey with at least these few guidelines in mind, the trip will probably be both enjoyable and profitable.

Grace Walker is an IT professional with an artistic soul. As one of the original partners in Walker Automated Services, http://www.walkerautomated.com, she provides business and technical consulting advise to many Fortune 500 companies. Her artistic soul has also led her to create websites that speak to culture, http://www.culturalview.com, and to create culturally based designs that are sold on apparel and home decor items through Cafepress, http://www.cafepress.com/cultper

Author: Grace Walker
Article Source: EzineArticles.com
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