Business Start-Up Tips - Part II
10 Start-up Tips: How to Get Your Business Up and Running
(Part II of a II Part Series)
Sometimes a lack of knowledge is paralyzing. If you’ve waited to start you accounting practice because you’re unsure how to go about it, this article is for you. Last week we discussed the following five startup tips:
- Name Your Business
- Choose Your Business Structure
- Get to Know Your Competition
- Be Legally-Minded
- Tread Lightly (financially, that is)
This week we’ll finish our discussion by addressing the final five startup tips.
6. Pick a Business Location (even if it’s just in your basement)
In real estate they say what matters most is location, location, location. The same applies to your business. The most important element in picking the right location is finding a place that will allow you to be productive and focus on your work. If you’ve decided to lease an office, take the time to research an appropriate area. Can you find a business district that compliments your services? Can you realistically afford to lease an office space right now? Is there a room in your house that could be dedicated to your new business? Weigh out the pros and cons and pick a place that works for your current situation and budget.
Your office should be a conducive work environment, well organized and professional. For more information on setting up your office, read our two-part series on office organization.
7. Create a Business Plan
It’s a cliche’ because it’s true: If you fail to plan, you plan to fail. Robert Krummer, Jr., chairman of First Business Bank in Los Angeles says, “The business plan is a necessity. If the person who wants to start a small business can’t put a business plan together, he or she is in trouble.”
A business plan is a must for those who are seeking funding from investors or loan approval for their small business; it should convince readers of your business’s validity and profitability. It also helps you articulate your business goals and objectives; later you can use your business plan to assess your progress.
Business plans generally include the following:
- Executive summary
- Company description
- Descriptions of products and/or services
- Market and sales analysis
- Strategy and implementation of your products and/or services
- Management summary
- Financial plan
That may sound overwhelming, but you’ll be surprised at how creating a business plan will help you better define your business and give you the plan necessary to succeed.
8. Create a Marketing Plan and Get to it!
If you don’t have a marketing plan, chances are you won’t get many clients, and if you don’t get many clients, your business will fail. Even if you’ll be marketing on a shoestring budget, you need to know what marketing strategies you will use so that you can begin using them! A marketing plan should define or address the following:
- Target market
- Marketing objectives
- Market analysis
- Marketing strategies
- Budget
9. Hire Well, Fire Quickly
If you’re hiring a staff, even if it’s small (one or two people), you’ll want to get the best employees possible. Don’t settle for an average applicant simply because you’re anxious to get started or doubt you can find someone better. Hiring superior support staff makes for a superior business. Ask the right questions, call their referrals, and perform background checks if you feel it’s necessary. Finding the right employees will save you a lot of time and money in the end.
If you realize that you’ve hired the wrong person, don’t wait for things to work out. While giving employees the time to adapt and “learn the ropes” is appropriate, giving them the time to drain your energy and resources is not. If your gut says it’s not going to work, chances are you should let the employee go and start looking again.
10. Hope for the Best, Prepare for the Worst
It’s good to be positive; it’s fatal to be blindly optimistic. Positive thinking will get you far; the more you envision your own success, the more likely you’ll be successful. On the other hand, while it’s great to hope for, and even expect the best, it’s important to prepare for difficulties with contingency plans. What will you do if your loan doesn’t fund? What will you do if your spouse can’t pick up the financial slack? What will you do if you lose bread and butter clients? You can’t anticipate every obstacle, but by preparing for the most obvious you won’t be devastated when problems arise. Just be sure you also celebrate your successes.
Information is power and we hope that by learning more about starting your own business you feel empowered to get busy and see it happen!
Financing a Small Business
Applying for a small business loan can be daunting, but we can literally walk you through the process and explain every step along the way. Universal Accounting Center’s book entitled Financing a Small Business is packed with clear-cut instructions and terrific resource materials that will make creating a loan application package easy. It even includes a sample loan package that you can use as a model. This book is a must-read for people like you interested in financing options. Order this opportunity today!
