The number of entrepreneurs in the United States is rising. A statement from the Global Entrepreneurship Monitor reports that there are now nearly 30 million people in the U.S. who own their own business with the intent of making it their full-time career. If you have thought about becoming an entrepreneur but you are not sure where to begin or are concerned about the financial risk, you should know that careful planning is a vital element in the formula for success. Fortunately, there are steps you can follow that may be elemental in helping you build a healthy entrepreneurial business.
- Begin with a Business Plan
Many small businesses fail quickly because their owners jump in and spend money on materials, website designers, and other costs before they do any kind of long-term planning. If you want to avoid false starts and wasted money, the first step you should take in starting your small business is to plan each step.
Not only is it important to project your costs, but you should ask yourself other questions as well, such as who your target consumers will be, what you can offer them, and how you plan to advertise. Approach your business plan from the perspective of a potential customer as well as the owner so that you can better understand all aspects of your business model and identify potential problems early on.
- Invest in Business Training
If you have no business training, it may be wise to invest in a short course at your local college or business school. This training can improve your business savvy and train you in every aspect of small business, from how to get financial assistance to securing a loan with the best interest rate. The more you learn about business, the more confident you will feel about starting your own.
- Decide Between a Physical or Online Business
A clever entrepreneur considers all the angles of whether his or her business model is more suited for a brick-and-mortar or online company. To make the best decision possible, consider the types of services you will offer before you choose a physical location or decide if you’d prefer to run your business completely from a website. There are advantages to both, such as running an online business would save money on rent and zoning permits but lack the presence and visibility of a physical business. Refer back to your business model to decide which is best for you.
- Secure Your Financing
Even small businesses can have investors, and if you have managed to secure some, now is the time to share your business model with them and encourage them to back you in order to get your business started. If you lack investors and you are backing yourself, consult your local bank or better yet, begin a financial relationship with a credit union and learn how it differs from a traditional bank. A credit union may be able to give you a low annual percentage rate on a small business loan.
- Launch Your Business Website
Whether your business will be run primarily from your website or you plan to have both a physical store and a website, launching your home page at the right time can be crucial when it comes to getting your business’ name out there. Your landing page is especially important, as it will tell your potential customers right away what your business can do for them and how. Invest in your own domain name (such as www.your businessname.com) for a more professional presence online.
- Open a Business Account
While you might believe your customers will write out personal checks out to you or transfer money into a personal bank or PayPal account without complaint, many people who shop online or in stores are wary of business owners who do not keep their accounts separate. Before you make your first sale, consult your local bank about what you need to open a business account. Some banks will let you add a second account under a “doing business as” or DBA account, especially for a virtual business that does not require you to have any employees.
- Get Your Tax Information in Order
The U.S. government requires that even small businesses file taxes and claim any income that results from that business. Before you open for business, ensure that you have the proper tax forms and know how to claim any income from your business properly so that you are not penalized or so that the IRS does not flag you for an audit or withhold your tax refund.
If you plan to become a business philanthropist once your company takes off and follow in the footsteps of others who have set an example for how to support charitable causes, such as Eugene Chrinian, you may want to think about retaining the services of an accountant. An accountant who is familiar with how to deduct charitable expenses and track donations can help you better manage this aspect of your finances.
- Prepare an Office Space
If you want to run a small business out of your home, take the time to prepare a space for yourself where you can keep all your important papers, make phone calls, and conduct business without being interrupted. If you cannot claim a room as a home office in your own house, then invest in a small office or consider co-working, where you share a large office space with other small business entrepreneurs for a few hours a day. This allows you to escape the clutter and noise of a typical household so that you can focus on your business.
- Create Your Social Media Pages
Create Facebook, Twitter, and Instagram accounts for your business that are separate from your personal posts. Not only is social media a great way to advertise your small business for free, it lets you make connections with other small businesses to create link-building opportunities for your website. Remember to name your pages clearly and invest in brand recognition. While it is fun to be clever, but when people search social media for your business name, they might not be able to find it if what you have named the account does not match up with your business name.
- Choose a Launch Date
Timing is vital for launching your business, so plan carefully and choose the right date. Avoid launching your business around major holidays, as most people are saving money for buying Christmas gifts or for summer vacations. Consider advertising your business launch date on your website and social media, and offer incentives like free food or coupons to draw a crowd.
Starting your small business may seem like a daunting task. However, with a little careful planning and preparation, it could also mean the start of a fruitful and long-lasting career as a successful entrepreneur.
