Steps
- Come up with an idea, product or service. Put it down on paper. You're more likely to succeed if you plan. Put down things like name of the business, what resources you need, short and long term business and financial goals.
- Chart your way to financial success. What price do you intend to sell your product or service for? How much will it cost you to produce? Work out a roughly estimated profit remembering to factor in fixed costs like rent, energy etc.
- Check out your competitors. How much are they selling a similar product for. Can you add something to it to make yours different and hence a better price?
- Put down your Unique Selling Proposition. Also how are you going to market your product? Via newspapers, a website, through word of mouth?
- Decide what type of business you would like to be -- an incorporation, LLC, etc. This is important for tax purposes.
- Think of how you're going to finance your business initially. The bank, venture capitalists, angel investors, SBA grants(government), your own savings are all options.
- Make your product(s) or service available to customers using your marketing strategy above.
- Keep a close eye on your running costs and keep them in-line with your projections.
- Get your accounts in order right from the start. Saves you tedious work later.
- Get a merchant account. A merchant account is a contract under which an acquiring bank extends a line of credit to a merchant, who wishes to accept payment card transactions of a particular card association brand. Without such a contract, one cannot accept payments by any of the major credit card brands.
- Set up payment methods like credit card.
Tips
- With the advent of the internet, online businesses are probably the easiest way to start and very much less expensive in terms of start-up cost than an offline counterpart.
- You can also think of trading on eBay or Overstock.
- A franchise is also a good option if you don't want to start from scratch.
- Don't be afraid to experiment with prices.
- A franchise is a great idea although the start-up capital is way too high for most people.
- Find a direct selling company that will provide you the training and support. Also, find a personal mentor that you can trust.
- Most direct selling companies have low start up capital compared to a traditional brick and mortar business. You can also break even rather quickly compared to the traditional business.
- Keep in mind to always provide VALUE to those who may be your customers.
Warnings
- Especially if going online, beware of people that ask for money before giving you business.
Sources and Citations
- http://www.getyourebook.com - For step-by-step guide to starting an internet business. Good collection of reviewed business and finance ebooks
- http://www.entrepreneur.com - All round information for small businesses.
- http://www.start-cleaning-business.com - Start a cleaning business with Suze & Ev.
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