| Now let's talk through some of the first steps of | | | | * How you will generate repeat business |
| starting a new business. But first, let me mention that | | | | ...and so on... |
| most small businesses fail within the first year. And if | | | | If you haven't decided what you want your |
| that doesn't discourage you, then you may well have | | | | company to do, if you don't have your "heart set" on |
| the attitude that it takes to be successful - | | | | something, it's a good idea to learn what other |
| dedication, perseverance, and strength of focus. | | | | successful entrepreneurs have done. You may find |
| The first thing that you need is a plan. In the early | | | | certain businesses that resonate with you. And also |
| stages, the plan may be vague. But, it does need to | | | | think - what kind of business lifestyle do you want: |
| be a little more specific than 'We are going to start | | | | * Would you like to work closely with clients over |
| our own company and get rich!' | | | | the phone, or in person? |
| That may be your goal. But, when you are writing | | | | * Would you like to manage other people? |
| your business plan, you need clear goals, and an | | | | * Or would you prefer a business you can run from |
| outline of realistic steps to reach those goals. | | | | home, keeping to your own hours? |
| Here's a very brief example, of an introduction to a | | | | Building the kind of business you feel is right for you |
| focused business plan: | | | | can greatly increase chances of success. If you don't |
| "XYZ Company, consisting of two partners, will buy | | | | enjoy what you're doing, you may well find it difficult |
| and sell antiques and collectibles, both online and off. | | | | to gather the strength of purpose to get past |
| Each partner will invest $$ for start-up costs, including | | | | business set backs. |
| the costs of registering a domain name and paying | | | | It's vital to learn about your competition -- let's say |
| for web-hosting services." | | | | you choose to open a dry-cleaners, at the very least |
| Another thing that must be included in the plan is an | | | | you would want to drive around your city and count |
| estimate of when the company will break even and | | | | the number of dry-cleaners that are already open. At |
| start to make a profit. That's particularly important if | | | | the same time, you could look for a location that has |
| you need funding or a line of credit. | | | | the least amount of competition. It would also help to |
| Excel is a fantastic tool for putting such projections | | | | visit them as a customer, and if you can sit and have |
| together - and do put together both very | | | | a coffee opposite them for example and watch how |
| conservative, and optimistic predictions, based on | | | | they go about their business for a couple of hours, |
| research (so that they're not complete guesses). | | | | and how many customers come and go. The more |
| That may then give you an 'average' for important | | | | you know about your SUCCESSFUL competition, the |
| figures, which means you haven't got too carried | | | | more you can duplicate their success, and even |
| away in either direction (worrying too much, or over | | | | overtake them! |
| estimating how your business will initially do). This | | | | With all of the online and offline resources that are |
| allows you to make realistic decisions right from the | | | | available today there is no reason you can't avoid |
| start. | | | | common business pitfalls -- it's far easier to learn |
| So that's some of the who, what, when and where, | | | | from the mistakes and the successes that others |
| of how to start a new business. Be sure to cover in | | | | have made while they were learning how to start a |
| your plan, at the very least: | | | | new business. Instead of trying to re-invent the |
| * Deciding who will participate | | | | wheel... copy success! |
| * What the company will do | | | | Whatever type of business you're interested in, |
| * What the start-up costs will be | | | | study as many success stories as you can, scope |
| * When the break-even point will be reached | | | | out your competition, be a customer of theirs, get |
| * Where the funding will come from | | | | on their mailing list... the better you know what's |
| * Examples of your competition | | | | working in business right now by studying successful |
| * How you will market against your competition, and | | | | businesses, the more you put the odds of significant |
| bring in new customers | | | | business success in your favor. |