Do you have your own business? If not do you hope to have your own business some day. It seems to be almost everyone’s dream to be their own boss (especially after you’ve had some of the bosses that I’ve had!). Owning your own business greatly increases your potential for income. At a job where you are paid a salary or paid on an hourly basis, you have a set income limit. Sure you may be eligible for promotions and raises in the future, but even then you are limited to a capped amount of how much you can make each month (The exception to this is if you are also earning a commission). The great thing about owning your own business is that you keep 100% of the profits you make. If your business is scalable, you’re income could rise exponentially.
First Steps to Starting a Business
The first thing you need to do before you waltz into your local bank and meet with a loan officer, is come up with an idea. It can just be a “spur of the moment” idea. It needs to be a carefully thought out and planned concept for a business. What you’ll want to do is start by brainstorming. Think of as many ideas as you can come up with. As you brainstorm write down each idea on a sheet of paper and then take a few minutes to seriously think through each idea. Decide what you would need to start the business and how viable of an option it really is. Be very critical of each idea, and narrow your list down until you are left with 3-5 of the most realistic options.
Then go crazy and research each of those options. Go as in depth into each business proposal as possible. Find out exactly how much it would cost to set up the business. Determine what your marketing strategy would be. Think about how much you could realistically expect to pull in the first months and years. Once you’ve done all of your research you then need to decide which of the business plans has the best balance of low risk and high potential. This is the business idea you’ll want to run with. As you can imagine most lenders have very strict loan underwriting guidelines, and if you plan on taking out a business loan your business plan will need to be airtight. Here are some templates you can use when drafting up a business proposal.
Think Big and Small
The trick to running a successful business is minimizing costs and maximizing profits. Realize that saving money on business materials and supplies is essentially the same as increasing profits. At least it has the same effect on your bottom line at the end of the month. Especially when starting up a business look for every possible way to get what you need at the smallest price possible. I cannot stress enough how important it will be to conduct internet research to find the cheapest prices available for everything from renting an office space to buying furniture, down to the minute details like finding the cheapest fountain and ballpoint pens, pencils, and paper. Pen Review Sites will go a long way in helping you find the lowest prices for your business materials and office supplies. Keep in mind that many people have already done the research as far as which products are the cheapest. Don’t underestimate how much money you can save by finding good deals on things as little as writing pens. All you have to do is find these websites.
After you’ve found the most cost effective way to start your business, focus on the best opportunities you have for maximizing profits. Think of how you can reach the most people. Think about how you can structure pricing. Make sure to include all of your details in your business plans as well as your business goals. Before presenting your business plan to the bank, have a few family members and friends look it over to make sure you haven’t missed anything.