How to Open a Small Business

Many people dream of opening a small retail business. This doesn't always necessitate business loans (which most of us can't get), or going into deep debt. Many businesses are started on a shoe string. Mine was.

Difficulty: Challenging

Instructions

Things You'll Need:

• business plan
• rent for one year
• operating funds for six months to a year.
• merchandise
• business license
• cash box
• reciepts
• store fixtures
• store sign
• phone number
• business cards
• merchandise tags
• commercial bank account
• fire extinguishers

1. 

   Business Plan:
   So you have a terrific idea and you want to open a business. Every business should have a business plan. It can be as simple or ornate as you want, notes in a notebook, handwritten, or typed.
   It is basically your plan, with information about expected costs, materials needed, merchandise, fixtures, utilities, licenses and other requirements you might need. Do your homework before you open and you will save a lot of headaches and money! Plus if you do apply for a business loan they will require a business plan with estimates of costs, sales and profits. (And you need to be prepared to explain how you figured your projections.)

2. Location, Location, Location:
   Where do you want to open your store and what is the monthly rental costs? Are there deposits, can you get a lease that will fix your costs for a year? You should research this before you commit. What are other retail locations renting for in the same area? Is the area zoned for your type of business? How much work will the location require to make it useable for your business and what costs will you incur? What about parking? Is there a cheaper alternative location for a start up?

3. 

   Merchandise:
   Have you identified suppliers of goods or materials for your business? Have you established wholesale arrangements? Do they offer time payments like 30 day due payments after receiving? Are you set up to get volume discounts? Do they offer fixtures and displays with bulk purchases? These can save you money. Have you researched your market for the items you want to sell?

4. Store Fixtures:
   Are you going to buy new, shop the used market (flea markets, Craig's list, auctions, closed store sales, etc..)or are you going to build your own? Does your store location come with display fixtures? Have you determined what you need?

5. 

   Outdoor Signage:
   
   Do you have a name for your store that expresses what you sell? Is it easy enough to put on a sign, on business cards, in the phone book and on checks?
   Have you checked on sign ordinances in your town or city? You may be restricted as to size, shape and materials, even the way it is hung by ordinances.
   Are you going to construct your own sign, buy it, have it made? Have you determined your costs.

6. 

   Other Considerations:
   * Establishing a business account at a local bank.
   * Establish credit card transactions through your bank if you will take credit cards.
   * Contacting the state tax office about a sales tax license.
   * Establishing business bookkeeping, receipt files and tax information.
   * Cash box or cash register. If you buy a register, is it computer compatible, can it scan transactions for inventory and stock control.
   * Building inspection prior to opening.
   * Permits for building modifications or erecting advertising signs.
   * Electrical and water utilities.
   * Phone service and advertising in the phone book. Note that listings are only posted once a year and may affect when your customers can find you in the phone book.
   * Fire extinguishers and safety signs, fire detectors and other items as directed by local fire marshal (required by most cities)
   * Internal store signage.
   * Misc. Materials like plastic bags, office supplies.
   * Cleaning supplies such as paper towels, glass cleaner, bathroom supplies, vacuum cleaner, broom.
   * Internet connection, web site and advertising expenses.
   * Office Computer and printer for inventory and stock control records, receipts, store signage, handouts, etc..
   * Misc. signage for restrooms, hours signs, advertising, wet floor, etc...
   * Book keeper fees if you do not keep your own records.
   * Employee expenses if you have an employee.

Tips & Warnings

• Create a Business Plan
• Do your homework
• Used fixtures can save you money
• Be willing to do as much yourself as possible
• Pay all your sales taxes on time, quarterly.
• Keep careful records of purchases, expenses and sales.
• Keep focused and positive, crawl before you walk. It is better to get a solid foundation in your business.
• Don't be afraid to ask other business people for suggestions.
• Do not expect to make a profit for several years
• It takes up to a year for customers to "discover" most businesses.
• Keep careful records in case you get audited, small business owners do get audited.
• Be willing to put in up to 80 hours a week in your own business.

[createaline]

on 4/1/2009 My shop was in Copperas Cove, Texas. I am an overseas contractor now and will open a store again after the economy improves.

[eggerist]

on 3/31/2009 excellent advice...been there...is your shop in Beacon?

[eggerist]

on 3/31/2009 is that store in Beacon?

[dasbootjoe]

on 12/25/2008 I would love to do this one day! Thanks for the ideas*****

[createaline]

on 11/15/2008 If your going to open a business do your homework. Open a business in an area you understand fully. If you love that type of work you will do great. If you just want to make money, find a job.
If you want independance, are willing to work hard, and you have a dream then you may be quit successful in business.