Getting Started With Small Business Start Ups
Small business start ups are easier to plan than to run, but they're easier to run if everything is planned out properly. The point is that many things need to be done before opening the doors, so to speak. This includes everything from a business plan and structure to financing, regulatory compliance and a marketing setup.
For those who have absolutely no clue where to begin, the best thing to do would be to get hold of a consultant to help in an advisory capacity. After all, it's easier (and less costly) to learn from others' mistakes than from one's own judgment. The most valuable advice any consultant can give is to tell the startup owner to create a plan and stick to it.
So put the plan as item one on the to-do checklist. The plan needs to have in-depth explanations for the concept and implementation, including the setup costs and operating expenses and the type of registration (partnership, sole proprietorship, limited company, and so on). The document needs to have detailed forecasts for expected growth and revenue for the first 3 to 5 years or so.
It serves afterwards as an accurate roadmap which can be referred to and checked to make sure everything is going as per plan. But in the initial phase, it helps provide an accurate picture for investors and lenders. That's why the operating model, marketing plan and revenue forecasts are essential.
Finalize the sources of finance at this stage. Choose the best option(s) from amongst equity and angel investors, banks and commercial lenders, and equipment lease proposals. Before this, check into federal assistance that may be available for small business start ups.
After this come the risk assessments and insurance, licenses and other regulatory issues. Don't forget to have an IT setup ready so that it makes the daily operations and management easier. Things to be considered in this regard include inventory and taxation software, a point of sale (POS) system and a website.
Once everything else is ready, there is still the need to come up with marketing and sales plans and acquire the manpower (if required). Note that online channels (web promotion, social media, etc.) are a lot easier to implement and less costly for a new startup. All said and done, planning for small business start ups is not so easy. But it does make the job of actually opening and running the firm a heck of a lot easier.
For those who have absolutely no clue where to begin, the best thing to do would be to get hold of a consultant to help in an advisory capacity. After all, it's easier (and less costly) to learn from others' mistakes than from one's own judgment. The most valuable advice any consultant can give is to tell the startup owner to create a plan and stick to it.
So put the plan as item one on the to-do checklist. The plan needs to have in-depth explanations for the concept and implementation, including the setup costs and operating expenses and the type of registration (partnership, sole proprietorship, limited company, and so on). The document needs to have detailed forecasts for expected growth and revenue for the first 3 to 5 years or so.
It serves afterwards as an accurate roadmap which can be referred to and checked to make sure everything is going as per plan. But in the initial phase, it helps provide an accurate picture for investors and lenders. That's why the operating model, marketing plan and revenue forecasts are essential.
Finalize the sources of finance at this stage. Choose the best option(s) from amongst equity and angel investors, banks and commercial lenders, and equipment lease proposals. Before this, check into federal assistance that may be available for small business start ups.
After this come the risk assessments and insurance, licenses and other regulatory issues. Don't forget to have an IT setup ready so that it makes the daily operations and management easier. Things to be considered in this regard include inventory and taxation software, a point of sale (POS) system and a website.
Once everything else is ready, there is still the need to come up with marketing and sales plans and acquire the manpower (if required). Note that online channels (web promotion, social media, etc.) are a lot easier to implement and less costly for a new startup. All said and done, planning for small business start ups is not so easy. But it does make the job of actually opening and running the firm a heck of a lot easier.
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