There is basically no definite criterion for becoming a great entrepreneur – formal college degree or experience in this line or even tons of money in the bank. But what you will surely need is a belief that the germ of an idea that you have in your mind is surely going to work and ultimately grow into a large enterprise, and that you are going to make a success of your venture. Once you have that passion or spark in you, half the work of setting up your business is already done.
However, the best laid plans will come to naught if you do not go about things systematically. Here are a few tips to get your on your way to a winning business setup.
This will help you evaluate what type of business will suit you. Evaluate the skills that you have and your areas of expertise. How much can you invest in the initial stages and is that enough to see you through for at least a year? Remember, about 90% of start-ups close shop within the first year because of a shortage of working capital. Finally, think about the lifestyle you want to lead. If you are leaving a regular 9-6 job for a better work-family life balance, you will do well to start a work-from-home venture and there are lots that you can choose from.
Once you have estimated your skills, the next step is to come up with a business idea that fits them. This is considering that do not already have one. For example if you are technology minded, research on the innovations being introduced in this area and whether it is possible to make a business plan based on it. Or you can focus on something unique, maybe a time tested business but where you can offer the same services cheaper and faster.
Once you have narrowed down your search go out and meet other entrepreneurs, research online or make other efforts that will help you know if your idea is really going to work.
Comply with all Statutory Regulations
Once you have decided your line of business, find out all the statutory requirements for it. Apply for registration with a name of your company; decide on the business structure and get all the necessary State and Federal tax ID and permits and licences. With these things are in place you will not have to worry about future unwarranted litigation and fines from the statutory authorities.
However, you will do well to get in touch with a business lawyer to guide you through the formalities as the rules and laws in this regard are quite complex and complicated.
Have a business plan
This is actually a comprehensive document which lists out projections of most of your important business parameters. It includes your competitors’ strengths and weaknesses, future marketing strategies and estimates of funds that you will need to run your business smoothly till it becomes a profit generating entity. Here too it is advisable to hire the services of a professional business consultant who will help you out in this regard.
These are some of the aspects that will enable you establish your small business start-up quickly and effectively.