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Starting a Small Business is Easier Than You Think....A dream for many people is to think of an idea, start a small business and become rich from their own efforts. Thousands fail each year, primarily because they are not familiar with business basics. Many sieze the opportunity, succeed, and it's so exciting. Let me first explain where I am coming from. After success in corporate life I have spent the last 15 years working in my Management Consultancy, largely from home. In those years many small businesses and their owners have been helped to higher levels of performance and many successes. I have also advised numerous individuals as they have considered their opportunities for starting their own small businesses. It has been a period of great professional and personal fulfilment. Any business venture contains risks, and any number of alternatives. We do not claim that any one way is the right way or that our suggestions are the only way. On the contrary, before investing any money in a business venture, you should seek advice from a qualified accountant/adviser and prepare a detailed business plan. An initial considerations for any small business is the legal form. There are basically three choices: sole trader; partnership; and incorporation (limited company). Each has a number of advantages and disadvantages, which we'll highlight throughout the article. One of the major causes of small business failures is the founder wasting start-up capital on frills, such as an impressive store front, office, expensive furnishings, etc. Which means one of the basic traits you must develop if you're going to be successful, is a tight hold on your expenditure. A good early rule of thumb is that anything that does not make money for you or protect your investment, should not be purchased at this time. Protect your cashflow now and in the future. This also applies to the expense of setting up your corporation. Unless you have a partnership and start your business as such the only real advantage of incorporation would be to protect your personal property if the business went into receivership, leading to liquidation. Selecting a suitable name for your business is vitally important, particularly when you come to consider advertising. Ideally your business name should describe the products or services you offer. A clever (to you) name which includes your name is not going to be sufficiently descriptive unless you have a particularly high profile. The name should tell the potential customer what the business does. Don't get carried away by vanity in using your name in the letterhead. One of the exciting features of starting a small business is the creative thought you need to give to the products or services you are going to provide.
My Management Consultancy was a natural follow on from my work experience in the 'world of the employed'. So if you can, stay with what you know. A great thing about a consultancy or training business is that in the course of carrying out your everyday activities you can develop saleable products, books, reports, seminars, presentations, techniques etc. Owning your own small business means that you embark on continuous and progressive personal development. You will find you come across new situations and you need to acquire additional knowledge and skills. This in itself is stimulating and very much required in the lucrative world of management consultancy. You may have a craft skill or acquired skills from a hobby that you believe could be developed. I happen to believe that there is great scope in home craft businesses. A number of people I know have succeeded with un-usual ideas. How does flower arranging strike you? If you think your idea will work. Do It! Don't wish you had. A natural small business easily established from home is a Secretarial Service. Even I with my limited typing skills and pedestrian speed could do this. Most of us now have word processors, what could be more simple than starting a secretarial service. Other areas where creative thinking is important are when originating promotional literature, publicity and your stationary. Always, always keep thinking and doing marketing. Use every opportunity and conceivable space to tell people what your business does. Simple things like using the back of your business card can be used to let your potential clients know what you do. Be imaginative, be creative, speak out at every opportunity. Look out for what impresses you about other small businesses. Can it be used in your business? Regardless of how small your business is when you begin, always be aware that it is an entity for you to nurture, not a replacement for a job, not just something to keep you busy. In business, this attitude is foolish. New businesses either grow or die, and those that grow eventually need more people in order to continue growing. Only when that time comes is it sensible to hire the additional people you need, and your business will continue growing. Remember control costs at all times. As you make a business successful in order to realise financial freedom, the potential is enormous. Establish your business, put it on its feet, and then hire other people to do the task work for you. You Work on developing your business, not working in the business. There are a lot of other considerations that may arise. I have seen businesses fail because people from a corporate background had to have suites of offices to operate from. I ask you? Vanity again! Should you buy, lease or rent space for your small business? Think twice before you make any decision along these lines. Most businesses tend to grow quickly or they never get off the ground. There are few exceptions, only a few tend to grow at a moderate rate. Having suitable space for expansion may be a consideration. In all probability you will be starting from your own home/premises which raises a number of issues. If this is so do thouroughly explore all that is involved in working from home. It will impact on others as well as you and your business. A separate business bank account is essential. At all times keep business and personal money apart. This will save all sorts of confusion and give you, the business owner focus on how the business finances stand. In selecting a bank for your business, scout around and look for one that can, and will, help you. Determine what your banking requirements will be and then interview the managers of the banks in your area by phone. Don't just select the most convenient bank to your business location - your relationship to your bank manager is important. The closer you can make the relationship, the better your chances for approval on loans, and/or special favours you may need at a later date. Try to become acquainted with as many of the bank employees as possible. The better you know them, the more courtesies they are likely to extend to you. Try to get as clearly as you can the bank's policies on all matters relating to support for small businesses. You may be surprised at the amount of support and helpful information they offer. The minute you open your doors for business, you'll have to spend some time engaged in book keeping. Exactly how, and what forms and books you should use, should come from, or be suggested by, your accountant but many banks now offer very simple packages for this, enlist their help. The most important ingredient of your eventual success will be the soundness of the planning you did before you started the business. Any number of situations can throw your business into a tailspin, but if you've planned well before starting - your losses or setbacks will be minimal. There is more on this at our page covering
business ideas.
You will have realised from the name and content of this site that we are dedicated to helping others to found and develop successful small businesses. This is because we have done it and know how fulfilling it can be. The rest is up to you.... Best wishes and goodluck.....
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