How to Start Up a Small Business
Many small businesses fail within their first year. Still others may take several years to become profitable. When starting up a small business, it is important to remember these factors. You want to be cautious and ensure that you do not put your financial situation at risk. However, the rewards to running a small business can be great. Working for yourself is a wonderful dream and many of the truly wealthy in America are business owners.
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Things You'll Need
- An idea
- Start-up capital
- Knowledge about licensing requirements
- Advertising or clients
Instructions
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Think of an idea for your small business. When considering what type of small business you would like to start, there are several important considerations. You want to do something you are good at and that you love to do because you must be dedicated for your business to be successful. You also have to consider whether there is a market for the service you want to provide. Finally, you'll need to think about the start-up costs
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Write a business plan. This business plan should start with the general idea you have thought up. It should also include projections for how much it will cost to get your business up and running -- this needs to include cost of materials, salaries if you need to pay an employee, advertising costs and any other start-up costs necessary to get your business off the ground.
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Do research into regulations, licenses and insurance required. Certain industries are regulated and you can't open a business without the appropriate license. For example, accountants, lawyers and physicians must be certified to practice within their state. Other types of businesses also need licensing -- for example, a liquor license is required to serve alcohol in a restaurant. Local laws should state what type of regulation or licenses are required for each type of business. You'll want to ensure that you meet these requirements. If the business requires insurance, you will also want to speak to an insurance agent to ensure you can qualify for the required insurance.
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Secure financing. You may want to use personal funds to open your business, if you plan to start small. Many small business loans are also available if you have a sound business plan. This is especially true for women or minorities, who may be eligible for special loans based on their minority status. You should check with the Small Business Administration to determine what types of financing might be available. Whether you choose to secure financing from a small business loan, a bank or investors, you should ensure that you have a sound proposal and business plan ready to present to those who are interested in investing in your company.
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Once you have secured funding and all the appropriate licenses and insurances, open your business. You may need to secure a location to do this, if your business requires a physical presence. You may also be able to run your businesses outside of your home or with an online presence only.
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Advertise your services. For your business to be successful, you must have clients who purchase your service. You can advertise on the Internet or use print media or mailings to alert potential clients of your services. Word-of-mouth and networking are also excellent ways to advertise your business. Cold calling potential clients may also be an option, as well.
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