Steps to Achieve Small Business Success!

By: Adrienne C. Stocker

Twenty years ago Nelson Davis had an idea that would bring thousands of entrepreneurs together and tie them together for life by one common thread…Making IT! Minority Success Stories.

 

Each entrepreneur came with ambition, and passion.  Without these things their businesses would not have made it.  There’s an old saying, that if you give a man a fish, he will eat for a day, but if you teach a man to fish he will eat for a lifetime.  So in this issue celebrating twenty years of Making IT! we’re here to help you get started today with five steps to starting your own business.

 

1) Have an Idea

Starting a business requires having a good idea.  Many people have good ideas, but don’t have the know-how or the skills to write them out on paper, and that’s okay.  You just will need to find someone you trust to help flush out your idea on paper.  Ask other business owners how they got started.  Take notes because their information will become valuable to you someday.  Your chances of success are greater if you have the correct knowledge to get started and its something you care deeply and passionate about.

 

2) Business Plan

Writing a business plan that makes sense is your next big step. A business plan isn’t just stating you want to start a company because you want to.  It also includes researching your market place.  Making sure the market needs what you are selling.  Know that the purpose of a business plan is so that banks and other investors will invest in your company/idea.  Have all the details in place before you hand it over to anyone to review.  If you are putting up all the start up capital for your business you still want to have a business plan in place because it’s your road map to your success, and it will keep you on your path.

 

3) Financing  

There are several ways you can obtain capital for your business.  The most important investor will be you.  If you can use any saved money to start your business you’re getting off to a great start.  If you don’t invest in your own business idea, most banks and investors won’t invest in you either.  Also ask friends and family members to invest in your company.  Consider making them part owners or board members if they do.  Local banks are great because they tend to really support the growth of their community with small business loans.  Remember that getting a loan will also mean having an additional bill to pay, which will cut into your profits.  So weight your options and pick what’s best for you. 

 

4) Getting started

You now need to ask yourself a few questions like, how should I register my company? Should I obtain a Federal Tax ID number or can I use my Social Security number instead? Do I know all the labor laws for my state?  These questions are great and will need to be answered at some point of you starting your business.  Sitting down with someone in the legal industry is a great idea.  Legal advice is the best advice and spending a few hundred dollars can save you thousands in the long run.
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5) Opening the Doors

One of the best things I can tell you is don’t blow your start up capital on fancy things.  A basic website, newsletter, and business cards will get you by.  Know how to spend your money wisely by looking to purchase used office equipment from sites like e-bay.  Starting from your home you will save on paying rent somewhere else.  Starting slow is the best way to build a strong foundation that will last over a life time.  Remember don’t be afraid to take risk because those are the times when you really find out what you’re made of personally and professionally.

 

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