Where Will the Money Come From?

Where’s the money coming from? You’ve got several serious issues when it comes to money to start a business. First, but maybe not foremost, is where will the money come from to start the business. Second, and maybe foremost, is where will the money come from to live on in the early stages of the business? Start-up business financing is hard to come by.  If you have a new business, you may want to apply for a loan anyway and get turned down. Then that bank can perhaps help you to go through the Small Business Administration (SBA) for an SBA loan. For the other part of the money issue, what will you live on?, many entrepreneurs will rely on their parents or spouses and rich uncles to see them through the start-up period. Some very smart entrepreneurs have kept their “day jobs” while they got their new businesses going.




One recent example was a high school math teacher who was reaching retirement age, but needed a business to help support him during his retirement years. What he did for the last five years that he taught was to launch a tutoring business to help students who either were struggling with high school math or needed extra preparation for exams to get into college. It took him about two years to get the business running the way he wanted it. He worked an additional three years to iron out all of the kinks in the business before he retired. Now, in his “retirement,” he has his days free, works late afternoons and evening and on Saturdays. This was a smart way for him to create this business. If he had waited until he actually retired to start the business, he would have struggled more than he needed to for the first two years. Many, many businesses can be started this way.




(Back to the 101 Tips to Start a Business)

Why Do You Want to Start a Business?

Why do you want to start a business at all? Is starting a business really for you? Up until the recent recession and after, we suggested that you start a business of your own only if you have a real passion and commitment to getting out on your own and then doing what you have to do to make it happen. Unless you are very lucky or rich, to start a business of your own can be tough going for a lot longer than you might anticipate.




Today, there is another group of people who likely need to start a business of their own–those in their late 50s, 60s and 70s who simply cannot find work and are not in a position to retire just yet. Those are the people who have sent out 200, 300 or 400 resumes and gotten literally no response in the job market. For them, their only alternative is to get that new business going and move into the black as quickly as possible and achieve financial independence once and for all.

Another group who we have identified and salute are young people, teenagers and those in their early 20s, who simply need to start a business, any business, to help make ends meet for the family. There are a lot of terrific businesses that they can launch, such as a lawn mowing business, yard clean-up/weeding business. We own another website related to the swimming pool and spa business. It is remarkable the number of business people we have interviewed for that website who go their start in the business as teenagers and have simply continued in it.

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What Business Would You Like to Start?

What business would you like to start? If you have a passion for being in your own business, but do not know what business to start, we strongly recommend that you look into a franchise business for start-up business ideas. A good franchise company will literally tell you all you need to know to be successful in a particular business.

It will may cost you more than starting a business on your own, but you will be able to climb the learning curve a lot more quickly than you can on your own.

Be careful with franchises and know what you are doing before you sign on the dotted line. We like the trend today for people leaving online comments about virtually everything. In the world of franchises, you will find important information in those comments. Are the franchise owners great at selling the concept, but terrible about helping the franchisee? Are they ripping off the franchisee with the costs of goods and services? You have to be careful here, but a good, honest franchise company that sincerely wants to partner with you so that you both make money is a real find and will help lead you to success.

Read all of the comments and reviews you can find about franchises in which you are interested and also the industry you are looking into. Technology is changing so rapidly. Make sure that you do not get into a franchise business that is about to go out of business because of technology. Not so long ago, one-hour photo franchises were the rage, then along comes digital cameras! Right around the corner from today, 3D printers are coming and we cannot begin to imagine what changes that will bring. When you find a franchise area that you like, think seriously about what can and will disrupt the business.

(Back to the 101 Tips to Start a Business)

Small Business Startup Checklist

Can you layout in a step-by-step fashion, what you need to do to get the business off the ground and running? We are not talking about a written business plan here. We are talking about your ability to visualize the business being successful and the key steps you need to take to make it profitable.

Here is a valuable start-a-business checklist to help you get your new venture up and running with a minimum of hassle. This start-a-business checklist is not an exhaustive list of everything you need to do, but it will help to you visualize and control the major elements of starting a new business.

Here are steps to follow:

_Visualize your raw idea and mentally turn it into a whole business

_ Business plan

Executive Summary
Business Description
Market Analysis
Management Team
Operations
Critical Risks
Financial Projections
Appendices

_ Marketing plan/analyze market and competition _ Set up office

Home office
Commercial office space

_ Create formal and/or informal team including…

Lawyer
Accountant
Real estate agent
Independent insurance agent
Friends or relatives in a business
Local business association members
Trade association members

_ Develop a mentor relationship

Business person
Local business association
Trade association
Contact SCORE

_ Check on Permits & Licenses

Fire Permit
Business permit
City or county permits
Professional permits or licenses
Sales Tax (if needed)
Special licenses for your business
Professional permits

_ Establish a Legal Business Structure

C Corporation
Subchapter S Corporation
LLC Limited Liability Company
Partnership
Sole Proprietorship

_ Register Works

Copyrights
Trademarks
Patents

_ Taxes & Registrations

Unemployment insurance
Workman’s Comp
Federal income tax
State income tax
City or local tax
Self-employment tax
Payroll tax
Federal Employee Identification Number
State Tax Identification Number
Sales Tax number (if needed)

_ Financial Focus

Raise capital for business
Establish a business bank account
Secure a business credit card
Establish business accounting system
Establishing line of credit for business
Create a Budget
Determine startup financial needs
Determine ongoing financial needs

_ Branding

Name of Company
Check name locally for use
Check name on Google
Check Trademark on Name
Tell you friends the name and have people say it out loud
Create Logo/Branding Information
Create letterhead, business cards, pre-printed invoices, sales brochure

_ Business Insurance

Check with insurance agent on your insurance needs
Health insurance
Liability insurance
Life insurance

 

_ Communications equipment

Telephones
Cell phones/Blackberry
Email
Website

_ Office Furniture _ Office Fixtures _ Office Computers and other Hardware _ Business Software _ Business Inventory

 

(Back to the 101 Tips to Start a Business)