Saturday, November 21, 2009

Steps to Starting a Small Business in a Difficult Economy

It seems obvious but unfortunately it's rarely considered by people starting a small business. Here's my pearl of obvious wisdom: "The key to having a successful small business is surviving long enough to be successful."

The key word...survival. Below are the Big 6 list of items that you have to consider and plan for. The lists assumes you are actually in the serious planning stages and you've done some basic research. Here's my list:

1) Know for certain how much liquid cash you have to dedicate to starting your small business. Not how much you think you can borrow from a bank nor how much you think your aunt Mary, who thinks you're perfect, will give you. Your money! If it's $0 it's $0 but know this number for certain.

2) Decide if your business will be something you want to "have fun" with or if your small business is a tool for you to achieve your goal of financial security and control.

3) Find at least 2 small business owners who run successful businesses and ask them the mistakes they wish they hadn't made. This step is more helpful if you interview relative strangers.

4)Know for certain how much money you or your family needs to live on each week, month, year. Your plan needs to assume your business will not generate a profit (free cash flow you can use) for at least 9 months.

5) If you've never worked in a small business go get a part time job in one or even work for free if you can't find a paying part time job. Do this for at least 3 months.

6) Don't read any books about starting or running a small business that aren't recommended to you by a successful small business owner. Here's my recommendation Click here

You didn't really think there were ONLY 6 things did you???

I'll post soon on how you can figure out what kind business might work for you.

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