Whether you partner up with someone, or become a soul owner, here are some very basic things anyone will need to know before jumping into your business venture.
The very first and far most thing a person should do, is research, research and more research.
Let’s say, your dream has always been to own a coffee house and you have some really great ideas to make one work. However, before you can run with the idea, you should do a number of things.
1. Generate a list of all of what you want to do in this business venture.
2. Get lots of input from other business owners that own a similar type of business.
3. You may even want to work side by side of someone in the business first and follow all the things they do.
4. If you are still gung-ho at getting a business up and running, the next step would be to come up with a business plan. I am sure there are several sites on line that can help you with this, or there are forms that you can get to do this.
5. A business plan will enable you to look at the whole picture of owning your own business.
6. Without financing, you cannot do anything, however, before you can figure out financing, you have to know what it is you want.
For instance, are you going to buy or lease a building? If leasing a building, do they already have the necessary equipment in place? This is some of what the business plan will take you through.
7. To own a store front business, it will take quite a bit of working capital. (working capital is the money it will take to run the business on a day to day basis without knowing what your profit margin will be).
8. The size of the business means everything. Whether you will be a coffee shop owner or offer a painting service, you will need to know what and how you will survive in your venture.
I had my own DJ business and I made a little bit of money doing it. However, I don’t think I ever made back the money I had tied up in equipment. Right now, I have a small side business just for fun. I don’t promote it or do a lot with it. I know I could do more with it if I wanted to, but I enjoy doing it the way I am right now.
9. Will the business be profitable and is there a market for this type of business?
10. How about the location, where will the business be located at? Will it be seen from the road, and how many of the same business are in the area you are planning on going to?
11. How much time do you want to spend on your business from a day to day basis? For every 4-6 hours of operation, you better plan on at least 1-2 hours of pre and after management time.
For instance, in my DJ business, I had to go early and set up my equipment and stay after to tear it down.
12. Advertising, business licenses, taxes and insurance are some key issues that are necessary to look into for a new business.
I myself, have had a lot of dreams to do a lot of different types of businesses, but after I thought about all the responsibilities that come with it, I decided against it.
You may want to try a small home based business or something linking you to the Internet rather than a storefront based business. However, I will caution you, be careful on any venture. Always read the fine print of anything you do, if you have to pay an attorney to read what you don’t understand then do so.
Owning your own business can be fun and challenging and maybe you will make some great money. If it is a storefront based business, don’t plan on a profit at least for the first year or so. Storefront business are very expensive to operate and will have a hard time sustaining themselves the first couple of years.
I hope this did not make you throw in the towel on creating your own business, but I do hope it allowed you to take a realistic look at how it will and will not work and actually make you a smart and savvy business owner. Best of luck to all you entrepreneurs!