Information About Starting a Small Business

Small businesses compose more than 80% of U.S. companies. They drive the economic engine that is the largest global economy in the world. Yet many small businesses are started on a "wing and a prayer," without proper planning, financing or reasonable expectations. The chances of starting a successful small business often need only a bit more planning, research and organization to reach stability.

Considerations

Considering the many things necessary to start a small business correctly is critical to your success. You may have a revolutionary idea for a product or service that might capture the market, but without a thoughtful, professional business plan, sufficient financing, cost effective marketing and the ability to deliver your product or service efficiently, your new business may be doomed to failure. Consider EVERYTHING. Sometimes the smallest detail can have the largest positive or negative effect on your success.

Misconceptions

Some people think that a successful small business needs only a great idea, a substantial amount of money or just luck to succeed. Wrong. Small businesses need viable--not unique--products or services, knowledge and courage of the founder and a commitment to succeed more than money or luck. If you've got money and luck too, it won't hurt, but just because you're a great chef or an accomplished inventor, don't believe your new small business will take the world by storm.

Potential

Don't underestimate the potential of a new small business. Bill Gates may have dreamed, but was not convinced, that his modest idea for duplicating the interesting screen look of Apple computers would be a big winner. He hoped to make money, but didn't envision that his product would revolutionize the PC industry. If you manage all components of your new small business properly, the potential for success is high. Don't rely on the statistics, which show that the majority of new small businesses fail within the first 2 years. Even this data shows that 20% of new businesses succeed.

Be Thorough

Everyone is not suited to be an entrepreneur. Be prepared to take risks. More importantly, be prepared to be thorough with all the important details when starting a small business. Be prepared to handle marketing to get a constant supply of projects; accounting to keep your finances in order; legal issues to get permits, offer contracts and collect slow payments; and taxation to maximize deductions, minimize taxable income and meet payroll tax requirements. You'll probably need some expert professional help. You can't maximize your business income by spending hours trying to be a marketing, legal, accounting or tax expert.

Significance

The most important components of starting a small business include the development of a good business plan (if you're unsure of how to create one, hire a professional), getting sufficient investment or loan financing, being dedicated to hard work and having a commitment to success. If you commit to starting a new business correctly, have a viable idea or product and are dedicated to spending the time and effort it takes to establish a winning image, you may generate income that sustains you and your family for years, perhaps forever.

Resources

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