Steps to Start Small Businesses
There are a number of key steps you will need to take to get your small business started. First, decide what types of products or services you want to sell. Then write a business plan that outlines every aspect of your business, including your markets, target customers and a sales forecast. You should also determine what particular niche you want to serve in the market, such as being the value leader with the lowest prices.
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Find a Location
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You location will be largely contingent upon the type of business you run. If you start running your business from home, set up your office in a spare bedroom. That way, you can write off your home office for tax purposes, according to Internal Revenue Service rules. For example, you may be able to write off the square footage of your office as a percentage of your home and annual mortgage expenditures.
Find a small office if you need to have customers visiting your location. Some city zoning laws prohibit excessive customer traffic in people's homes. Find a high-traffic area for your business if you are opening a retail store. Make sure you determine your key target customers when choosing a site.
Find a Product Supplier
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You will need a product supplier if you plan on selling any type of product. Start by searching your own area for a wholesaler. For example, you may be able to buy the candy, snacks and soda for your vending business from a large food wholesaler in town. Additionally, check websites such as Wholesalecentral.com and Wholesaledir.com for wholesale products. Call various wholesalers and determine their shipping times and unit costs. Select the wholesaler that provides you with quick shipping and the lowest unit costs.
Also, make sure you are dealing with an actual wholesaler and not some secondary-party seller. Go to Whois.net and type in the name of the wholesaler. The company should be registered under a proper business name. You are probably dealing with a second-party seller if an individual's name is listed at Whois.net.
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Obtain Your Licenses
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You will likely need a DBA (doing business as) name if you are using a fictitious name for your business, according to the U.S. Small Business Administration. You can file for a DBA with your local city or county administration office. You will also need a seller's permit if you sell products retail or wholesale. You can probably obtain your seller's permit at the same location as your DBA. If you own a corporation, such as a limited liability corporation, you will need certain state and federal licenses to operate your business. Contact a corporate attorney to help you with the licenses you need for your corporation.
Market Your Business
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You will probably need to contact your clients directly if you sell products or services to businesses. Start by calling businesses by phone, then arrange meetings with businesses that are interested in your products or services. Leave a brochure and business card with the business owner or manager if you do not make an immediate sale. Distribute fliers on grocery store bulletin boards, windshields and at noncompeting retail outlets if you own a store. Coupon magazines are also highly effective. Additionally, you can place ads online on major search engines like Google and Yahoo! if you have a website.
Make sure you maintain a database of customers who purchase your products, including their names, addresses and emails. That way you can send customers special deals so they make additional purchases. The bulk of your sales will likely come from repeat business.
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References
- U.S. Small Business Administration: Follow These Steps to Starting a Business
- Inc.: How to Advertise Your Small Business Online
- Entrepreneur; Straight to the Source; Chris Malta; February 2007
- Internal Revenue Service: What You Need to Know About the Home Office Deduction
- U.S. Small Business Administration: Register Your Fictitious or "Doing Business As" (DBA) Name
- BusinessNameUSA: Seller's Permit
