RESOURCE - First Steps to Starting Your Own Business
As many of you know, I quit my corporate job of 15 years on September 28, 2006. Since then, I had my share of ups and downs of starting my own business and I learned a lot, FAST! Here is the article that I wrote for the Women's Business Boston that was published on December 1, 2006. I hope it is helpful to you if you are thinking about starting your own business!
Ask these questions when taking the ‘Leap’
Friday, December 1, 2006
So your friends are saying, “Wow, you made the jump!” “Congratulations!” “So excited for you!” “You are an inspiration!” “I am so jealous!” “You are going to be great!”
And your family is saying, “Are you crazy?” “So many others have failed!” “You have a family to support!” “I am concerned for you.” “You are dreaming!”
Of course, this is about you quitting your job to start your own business.
As you start down the path of entrepreneurship, before you start ordering your office furniture and business cards, here are a few questions you should answer about you and your new business.
� What exactly is your business? If it is a retail store, what are you going to be selling? Will it be high-end or low-cost items? Who is your target audience? If it is a consulting business, in what areas will you consult? Technical project management? Quality control? Marketing? Who will be your clients? Individuals? Businesses? What size or type of businesses?
The trick is not to be so narrow in focus that you have almost no market and not to be so broad that people do not know what you do.
� Do you know what you need to know? You may be an expert in your field, but are you an expert in starting a business? Educate yourself. Sign up for entrepreneurship or small business classes at your local adult education centers, check out www.cweonline.org, buy a book, visit your local Small Business Administration or SCORE. In other words, don’t just rely on your Uncle Joe who owns a plumbing business for all your information.
� Do you know what you don’t know? Get expert help. A business attorney will advise you on which legal form of business is best for you and your business — sole proprietorship, general partnership, C corporation, S corporation, or limited liability company.
A tax advisor will also advise you from a tax perspective which legal form of business is best for you. He/she can also let you know what counts as a business expense, etc.
A Web site developer can help you design and host your Web site. A good way to find a good Web site company is to look at the bottom of the sites of small businesses or nonprofits that you like.
Depending on your business, you may also need to hire a bookkeeper, a marketing consultant, graphic artist, etc. For any area that you are not an expert, and if that area is critical to your business, you must fill in that gap with outside expertise.
� Where are you going to get the money? Develop a good estimate of start-up cost as well as how much it will cost to sustain your business for at least one year. Then establish a plan and list out your financing sources. Will it be business credit cards? Your 401K? Home equity loan? SBA loan? Make sure you consult your tax expert for advice on which of these options is best for you and your business.
� Do you have something in writing? Yes, as much as some of you may hate the idea, you must have a business plan and a marketing plan. There are many places to get simple templates for both documents, http://office.microsoft.com and www.sba.gov to name just a couple.
Hire a new venture consultant to complete the forms for you if you cannot do it yourself. Even just an outline of a business plan and marketing plan will be helpful. Not only will banks, your hired experts and even some clients want to see your business in writing, but it is also an excellent exercise in fully planning out your business.
� Last and most important, commit yourself to your dream fully. Give it a good fair shake. It is a business, after all, and not a hobby. Equip yourself with information and experts. Talk to people about your business. You will be surprised how many resources and contacts are out there (your business attorney may tell you to have them sign a confidentially agreement first).
And then, you will be well on your way to proving your family wrong — and proving your friends right!
5 comments:
Great info! The first of quitting your job and striking out on your own is SOOO difficult. Congrats!
Hello and thanks for the kind words you left on my blog! You sound like a busy mom... I am a mom of two also, with "the baby" about to go off to college.
You have a nice site here, so full of good this-and-that. A great resource for moms!
Keep enjoying those little boys of yours, and your first boyfiend too! ;-)
Hello, and thank you for visiting my blog. Yes, I have three movies with Sleep in the title. On my profile on another site I jokingly put "see a theme yet?"
I like to know that someone else quit a corporate job to pay more attention to dreams, home, and family. I resigned in December of 2006, and have not looked back! That jump was not the hard part. Motivation to get up in the morning has been the challenge.
I have begun this year trying to be more. More healthy, more involved, more attentive. My family has been concerned about the loss of insurance, but since I have lived so long without it already, this seems small to me. I am walking every weekday, I am eating less, and cleaning house more. I am hoping to be a mom someday, so I am organizing my surroundings to make that an easy addition.
Thank you for the inspiration!
Chelf, best of luck to you and your new future! It sounds like you on the right track...it is never easy, but it is always good.
Good info about working for yourself...I want to be self-employed but I am scared of losing that health insurance. Everything else I can deal with, but not having insurance is too scary esp with kids and all.
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