27. November 2017

Starting a business always begins with what you think or believe is a great idea. For most people that is where the story ends. Just an idea that they bring out over drinks with friends or at family gatherings but that never becomes more than just an idea. Taking action to move from an idea into an actual business for most is an overwhelming task and one for which they have not been trained or educated.

Having no practical experience in starting a business and no formal education on the same tends to compound what already seems like a huge task. It is at this point that many would be business owners freeze up and while they know there are lots of actions which need to be taken they do not know which to do first or in what order they need to be done. Let’s break it down into bite size tasks and place them in a relative order to make the idea to action part of starting a business a little easier.

Action 1 – Business Name
This may sound easy but maybe not as easy as it appears. You will want a name that no other business is using and not one that just nobody is using in your State. You will want the website name to be available for your business name so that you do not have to add anything to your business name just to have a website for it. Search the BBB.org site, use the godaddy.com domain search, check the TESS (US Trademark search), and you can check the Experian and Dun & Bradstreet business credit files.

Action 2 – Business Entity
Do not do business as a sole proprietor or partnership. Those forms of business are not stand alone entities and they put everything you own personally at risk. One mistake can result in you losing your savings, investments, your home, and anything else you own. Form either an LLC or INC to protect yourself personally and to have a standalone entity.

Action 3 – Your Plan
This doesn’t have to be some kind of canned plan, Rather it should be your idea written down. Answer things like “is there a market?”, “how much competition is there?”, “is it sustainable?”. There are many good business plan checklists out there that will help you write down your idea and see if it really makes sense. Demographics play a huge role, “does anybody want what you are offering?”. An example might be to not open a bagel and coffee shop where everyone has to make a left hand turn on their way to work. Your business has already failed. People will not cross traffic to both get to your shop and then to get back out. And they do not buy bagels and coffee on their way home. Do your homework.

Action 4 – The Money
“How much money will it take to start?”, “do you have enough?”, “do you have access to more when needed?”. Doing the budget before you begin is a massive part of your success. Most business that fail do so due to a lack of cash flow or financing. The budget was not well thought out to begin with, revenue production was over estimated, and there was no pre-qualification done to have access to more cash if and when crunch time came.

Action 5 – Required Services
Your cash flow can be gone quickly when you start adding up all the services you need to successful build and grow your business. You need; a phone system, website, accounting, ecommerce, local marketing, SEO, CRM, ERP, mobile marketing, location, email marketing, direct marketing, and more. By the time you add them all up you find you are spending thousands each month $49 to $499 at a time. But trying to operate your business without these critical services surely increases you chance of failure.

Action 6 – The Best News
The best news you can receive about starting a business is Fundability.com. All of our action steps are clearly laid out and provided. There are virtual coaches on each step instructing you what to do, why to do it, and how to do it. There is also a professional team you can contact at any time to get the answers. Your business success begins one step at a time and getting the best help possible each step of the way.

Business Planning, Business Startups, Entrepreneurship, Small Business Financing