Thinking about Starting a Small Business?

by ModeBiz Team 17. September 2011 14:45

Small businesses are increasingly becoming vital to the economy. But starting a company may be mind-boggling if you have never done it before. It is viewed as an unattainable dream to a lot of people today. It really should not be that way. So what does it take to become an entrepreneur?

To start with, many successful entrepreneurs were not born leaders. They are very dedicated to their business and don't take no for an answer. Make no mistake about it: small businesses take a lot of work to become successful.  It requires being responsible and accountable, and to achieve success,  you will have to develop a lot of different abilities such as negotiation skills, communication skills, leadership skills, sales skills and more.

Keep in mind that you don't always need to spend all your time on your business. You might prefer to start with a part-time business, allowing you to test the waters, and see if the business is viable while still earning a paycheck from your 9-to-5 full-time job! Many follow that route with the initial goal to complement their primary source of income. This presents the advantage of reducing some of the risks of going full steam ahead on your own.

People often ask what kind of business they should start. Unfortunately, no one can really answer this question for you. Although there are multiple reasons that might lead you to start your small business, you are more likely to be successful if you base it on something you thoroughly enjoy doing. Nowadays, many people choose to start a home-based business, especially since the internet has multiplied the number of opportunities for entrepreneurs. Do you have a specific skill set that you particularly enjoy? Do you like to work from the comfort of your own home? If you do, you will find such a venture extremely rewarding, despite all the difficulties. It will keep you highly motivated.

In all cases, an initial investment is necessary. This investment might be only a time investment, but depending on the nature of your business initiative, you might also need to set some money aside. Deciding how much money you will need is a critical question that you must answer early on in your project. There are many source of funding available to you: from venture capitalists to grants to banks. However, few small businesses use these sources of funding. If necessary, set aside the money you will need on day one, and make sure you keep your personal money separate from the money you plan to use for your business, or once started, from the money your business generates. This will make tax time a lot easier!

Regardless of your level of excitement once you have decided what you want to do, don't rush things. You need a plan - a business plan. Make sure you have a clear goal in mind. Everybody will do this differently. But think about how much money you wish (or need) to make, how many customers you will require to reach that goal, how you will make your target market aware of your product or services, what will be your costs, and so on. Reflecting on such topics will make you more aware of the financial and time commitment necessary to reach your goals. It will help you set your own expectations and keep your motivation high. Your plan is also a reflection of who you are, as the business owner. Your business plan defines your business, identifies your goals and how you will reach them. Having a plan is crucial to anyone starting a business. Starting a successful new business requires a lot of thought and time before even spending a penny.

As you are probably starting to realize, starting a small business can be a real challenge, and it certainly is a daunting task if this is your first experience. Doing it from home is becoming more and more appealing to many of us. Being dedicated to it, regardless of how much time you spend on it, is important. Perseverance will pay! At the end, starting a small business can actually be really fun and is extremely rewarding from many points of view!  Starting your own business could possibly be the most enjoyable time in your life.

Don't hesitate to share your thoughts by posting a comment!

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