This first step is all the more important if you’re supporting a family. Don’t jeopardize your family’s future by giving up your primary source of income to pursue a personal dream. Though it’s harder to balance your side project with your day job and your family life, it’s much safer. If you think you may want to start your own business in the near future, avoid signing an employment contract with a clause restricting your ability to pursue other sources of income. Don’t be afraid to carefully go over your contract with a lawyer.
How much will it cost you to provide your product or service to the customer? How much will you charge the customer for your product or service?[3] X Research source How will you increase the volume of your business? In what ways will your business offer a better deal than your competitors? What kinds of people will you need to hire? Can the work be done without these people?
Not all industries are equally easy to break into. Business research firm IBISWorld recommends certain industries to aspiring small business owners for their low entry cost and high growth potential. [6] X Research source Among them are: human resources & benefits administration, street vending, online auctioning & e-commerce, ethnic supermarkets, wine/spirit brewing, internet publishing, and more.
Business plans are evolving documents. If the results of your research or testing contradict your current plans, don’t be afraid to change your business plan or even start from scratch. Doing so can be frustrating, but it’s far smarter than risking the failure of your business on an idea that won’t fly.
If you need to go back to school, apply for every scholarship and financial aid package you’re eligible for. [8] X Research source The paperwork can be time-consuming, but the results (in the form of money saved) are worth it.
If you have a home, use it as the initial site of your business, rather than renting an office. This way, you’ll save the money you would otherwise have spent on rent. For tax purposes, you may want to write off part of your home as a home office.
Keep in mind that, today, depending on where you live and the kinds of people you employ, you may be required to pay for an employee’s medical insurance in addition to his or her base salary.
It may be an especially good idea to have a clause specifying that if the business fails, you’ll have an extra-long time to pay back the loan (or won’t have to pay back the loan at all).
Operate for profit Meet SBA guidelines for what makes a business “small”[12] X Trustworthy Source U. S. Small Business Administration U. S. government agency focused on supporting small businesses Go to source Operate in the United States or its territories/possessions Have sufficient equity (basically, value. ) Exhaust other reasonable avenues of raising money before applying Be able to demonstrate a need for the loan Be able to show a sound use for the money Not be delinquent on any existing loans to the government
Today, you also have the potential to reach your customers online via a successful social media campaign. [14] X Research source Social media is an effective way for a small business to represent itself to its customers online. Best of all, it’s free for your business to join almost all major social media sites. Make an account on Facebook, Twitter, or other social networks, and encourage your customers to add you to their online circle (possibly by offering small perks to customers who do so) so that, you can notify them about deals and promotions. [15] X Expert Source Art LewinEntrepreneur Expert Interview. 11 June 2021. Keep in mind, however, that online customers are used to being constantly bombarded with ads. Try to make your online content genuinely funny or striking - you’ll be more popular than if you use social media solely as a platform for ads.
Find some areas you are passionate about and grow your skills in those areas through studies, training courses and the practical application of knowledge and skill. Find ways to make money out of your passion rather than trying to “force” the day job that you work to pay your bills into being the object of your passion.
For instance, are you “not a morning person?"[19] X Research source Are you “low-energy?” If your restaurant’s grand opening is in one week, you can’t afford to be these things anymore! Change your habits today - set your alarm clock extra early and drink a big mug of coffee.
Another way to win cash for your small business is to enter yourself in a startup competition. These competitions, often put on by the business schools of major universities (especially San Francisco Bay Area universities like Berkeley and Stanford) allow young, enterprising entrepreneurs to sell their ideas to wealthy venture capitalists. Usually, in these competitions, the winners win an initial round of funding to start their business!
Try to understand what the customer wants. [22] X Research source Find the best way to satisfy those wants. The main focus of any business is customer satisfaction. (Secondary focus should then be quality, cost/profit, appearance, function of product/service, etc etc. . . ) Remember that the customer is “always right” - even if s/he is acting entitled or illogical. This doesn’t mean you need to capitulate to customers with ridiculous demands - rather, just that you need to make every customer feel respected.
Try to understand what the customer wants. [22] X Research source Find the best way to satisfy those wants. The main focus of any business is customer satisfaction. (Secondary focus should then be quality, cost/profit, appearance, function of product/service, etc etc. . . ) Remember that the customer is “always right” - even if s/he is acting entitled or illogical. This doesn’t mean you need to capitulate to customers with ridiculous demands - rather, just that you need to make every customer feel respected.
Make good on your promises and never be tempted to engage in false advertising as it will ruin you and your business’ reputation in no time.
It can be a very good idea to pay a lawyer to help you write your contracts for you. Legal fees can be expensive, but a well-written contract can save you many times your initial investment in the long run by preventing your partners from taking advantage of you. Be careful when using the term ‘partner’ when you speak with business associates, as the legal concept of promissory stoppers (the spoken word superseding a written contract) might bite you at a later stage, especially if you start making money.
Try making a trip to the local flea market - here, you’re usually allowed (even encouraged) to haggle and bargain with vendors, so you can get some good low-stakes practice in.
Talk to your family and make sure they agree with your overall business plan, because you may, at times, have to tax your family’s resources, time, money, health, and nerves. It’s only fair that they know what they’re getting in to. After becoming the boss in your business life, you may feel the temptation to become bossy at home, too. Don’t act on this temptation. Keep your business concerns and your family concerns separate - make a rule that you won’t discuss your business at dinner, for instance.
However, if you’re not familiar with the law, get help. The money you spend on a lawyer can save you many times your initial investment, for instance, by preventing you from getting into damaging contracts.
Try to get income protection insurance, especially if your job is one with a risk of injury - a self-employed person cannot afford to lose income to this possibility.
Additionally, you should never rely on drugs to aid your performance ability or to replace your regular healthy eating and exercise plans. This will, in the long run, break you down and cause you to make irrational, emotional decisions which are never a good thing in business.
