Is your business idea really unique? What value will it generate? Is it something your target audience really wants? Or is it something you think they’d want? Getting answers to these questions is important to determine whether or not your idea works.
“If you’re going to make serious money, a corporation gives you real tax advantages,” said Consulting Canada CEO Barry Sharp. “If you’re providing a product or service that has a significant liability risk, I’d be incorporated.”
Unless you’re running a solo business from a home computer you already own, it’s likely that you’ll need some financing to start your business as well as periodic infusions during slow periods or when your company is growing.
Make your bank work for you. Run your small business with financial efficiency by exploring all the options that banks offer small business owners and choosing the right bank for your business’ financial plan. Many financial institutions offer accounts with low fees, loans with discounted rates or free direct deposit programs for small business account holders. Banking with the institution that gives you the best deals will help you stretch every dollar.
This is a very simple way of taking your ideas and figuring out what is worth your time. As you can tell, you want ideas in the “Golden Goose” quadrant, one where there are lots of potential customers and a high price. Plotting your ideas on this matrix help you to not fall in love with your first idea, something we call “idea one-itis.”
Who am I? I’m New York Times bestselling author Ramit Sethi, and I’ve created more than 15 products that generate tens of millions of dollars a year. I’ve helped tens of thousands of students build businesses so profitable they can leave their full time job.
Sorry, but yes, there’s more paperwork. Figure out whether you want to incorporate federally, which costs $200 for online filing or $250 for paper filing. Then, determine which permits and licences are legally required for you to get started by using a tool like BizPal.
But that’s simplistic, and it’s an excuse to stay in your current state and do nothing differently. Instead of thinking of the reason they succeeded, ask what you can do TODAY to get closer to your goal. The fact that a famous entrepreneur went to Harvard has NOTHING to do with you finding your first customer or testing your first idea.
Use technology to your advantage Successful big businesses know how to use available technology to increase their productivity and streamline their operations. Doing the same for your small business does not mean you have to spend thousands of dollars on the most high-end equipment available. But you do need to be smart about the technology you choose to implement in your business.
Purchase equipment. Purchase all of the things you need to start work. This can mean mechanical equipment, computers, telephone, or craft supplies. It all depends on what you are doing. Try to purchase from business supply companies as they will have significant discounts. If you are short of capital, lease or rent is an attractive option too, so as not to block your funds.
Come up with an idea. You will need an idea for a business before you do anything else. You can conduct a market research to have a clear image. This should be something you are passionate about, since your new business will consume a great deal of your time and money.
Make scheduling appointments easy for your customers with our Square App Marketplace partners. The Square App Marketplace offers a number of online booking systems that fully integrate with Square Point of Sale. Here are some helpful online booking systems that will increase efficiency for your business.
To figure out which area to prioritize first, think about the day-to-day tasks that eat up the most time. Is it ordering inventory? Managing your employees’ schedules? Setting appointments? Running payroll? If you find yourself spending more time than you’d like on any of these things, it’s time to search for some technology to help.
We do this all the time. We see a famous CEO and point out how “he took 5 companies public and got a Harvard MBA.” We see a successful children’s book author and point out how “she already knew 4 publishers, so her book got published immediately.”
Use your resources effectively. It’s important to be confident in those things you do well, and realize there are resources to help with those parts of running a business that are not as comfortable. Invest in the equipment you need to help get your business off to a good start. If you don’t have the equipment in-house, look for business resource centers that can help with services needed to run your business such as packing, shipping, printing, and other business service needs. We often hear about the importance of time management, and learning more about available resources can help us better manage our time.
Similarly, if you decide to establish social media profiles on Facebook, Twitter, Instagram, Pinterest, etc., make sure you are ready to make the commitment to the relationship. It is not enough to simply create a profile and post a picture every now and then. Your social media profile information needs to be accurate, your posts need to be consistent and you need to participate in the conversations with your audiences. A strong online presence helps encourage customers to do business with you in person.
Employ targeted promotional and marketing campaigns. It is important to get the word out about your company. Make sure the money you set aside for marketing is well-spent by conducting demographic research. This will help you tailor your marketing plan to be as effective as possible.
When starting a business, there are important differences between starting from scratch, buying a privately owned business and buying a franchise. To know what steps you need to take be sure to read these articles:
CIT and Operation HOPE Join Forces to Help Small Businesses Launch + Grow To celebrate Financial Literacy Month, CIT and Operation HOPE are partnering to educate and empower small businesses with tools and tips for success. Hear inspiring stories from a diverse group of small business owners at
Report. No matter which source you raise funds from, be sure to provide key operating, strategic and accounting information to your financiers periodically, usually twice a year. It’s a good idea to hold a board meeting if everyone can physically attend. If not, do it via teleconference.
Delivering what you promise begins with how you tailor your approach to sales. If you or your sales team is offering or promising too much, your customers will be understandably disappointed when they receive or use your product or service, leading to negative reviews and bad word-of-mouth about your business. Remember, good sales tactics should be centered around identifying and understanding your customer’s needs and making them see the realized benefits that your product has, not lying to your customers and clients about the potential of your product.
Expenses. These are the costs for operations that occur during the start-up phase. They include tax-deductible costs such as travel, payroll, rent, office supplies, marketing materials, etc. They also include initial organizational costs like legal fees and state incorporation fees. Many (but not all) of these costs are tax deductible, up to $5,000 in the first year of doing business. You can deduct the remaining costs in equal instalments over a period of 180 months (starting with the month in which your business opens).
Start by setting up the main accounts to monitor. Separate your assets, liabilities, expenses, and equity. Assets are your cash on hand, inventory, accounts receivable, checking account, and savings account. Liabilities are your credit card and accounts payable (what you owe), then there are your general business expenses.
You should also be looking to the future here. Will your payments processing device grow with your business and keep you current with the latest in secure payments technologies? Toward that end, get a reader that can accept EMV chip cards.
How will your product or service generate money? How much money will it generate? How much does it cost to produce your product or service? How do you intend to pay operational costs and employees? These, and others, are critical question you need to answer in planning your small business’ financial future.
Pay attention to your customers. After all, you have to see a customer to know one. No matter how busy you are, especially in the early years of your business, be sure to spend at least 25 percent of your time with customers. You can’t make the right business decisions without understanding the customer’s viewpoint.
It is helpful to think of promotions and marketing relative to the capacity of your business. Paying to run a commercial on a national network does you little good if your business is only designed to operate at the local level.
Keep in mind that quality takes only moments to lose and years to regain. Quality isn’t a destination but rather a never-ending journey. After you’ve strayed from quality’s path, your journey may be sidetracked forever.
Here, it useful to ask questions of your service or product. For example, you may want to ask questions like, does my product/service appeal to younger or older people? Is my product/service affordable for lower-income consumers or is it a high-end purchase? Does my product/service appeal to people in specific environments? You won’t be selling many snow tires in Hawaii or beach towels in Alaska, so be realistic about the appeal of your product.