First Steps to Starting a Business

Q: I'm ready to start my business. What do I do now?they market and what their competitive advantage is.
A: OK, you've got your business idea. You're firedGo into their stores and watch their customers. Find
up—ready to quit the rat race and be your own boss.out what they are doing and why, and how customers
What do you do now?respond. Once you think you have a clear
The first thing you need to do is decide on the goalsunderstanding of what the market wants, then move
for your business. What do you personally want to getahead with your product or develop your service.
out of it? How many hours do you want to work?You'll also need to decide what kind of company
How many employees do you want to have? Howstructure will best fit your plans (S Corp., LLC, sole
much money do you want to make? The idea here isproprietorship and so on).
to get as clear a vision as possible of what yourIf possible, work out of your home for awhile or rent
business will look like when it is established so you'llthe minimum space and equipment necessary to run
know what needs to be done to get there. For a veryyour business. It's important to keep your overhead as
clear step-by-step method to do this, I highlylow as possible, at least until things start to take off.
recommend a program called E-Myth.Resist the temptation to rent a nice office and fill it with
Next, do the math. So many people—includingfurniture and equipment. I used to think that was
me—have learned the hard way that the businessimpressive, but I came to realize it was just expensive.
they created is not capable of meeting the goals theyFrom the start, it's critical that you communicate a
set for themselves. To help avoid this problem, doconsistent message to potential customers. Start with
some market research to determine how much you'llthe following:
be able to charge for your product or service and1.Business cards. Get plenty and hand them out at
what volume you'll be able to sell. Think about howevery opportunity. A good place to get
many hours you'll be able to work in a day and get aprofessional-looking but inexpensive cards is
rough idea of the maximum amount you could make.2.A Web site. This can be free (I recommend ) for
Once you have rough estimates for those figures, youstarting
can decide if the money you could make or the time3.A simple one-page flier. Create something that
you need to put in will be worth the effort. You'd beexplains clearly what you offer and why someone
surprised at how many people spend years working inshould buy it from you. Customers want information to
a business that is just not capable of becoming whathelp them make buying decisions, and often just
they hoped it would, even if everything went perfectly.knowing what you sell will get them to buy from you.
Many new entrepreneurs think success is all aboutIt's very hard to figure out what some businesses are
developing a great product or service, but actually it'sselling or why you would want to buy from
all about selling it. Before you spend tons of time andthem—don't let this be your problem.
money developing your product, make a prototype orStarting a new business is scary, exhilarating,
develop a clear and concise description of what it willchallenging and at times downright confusing. It's easy
be, and do some market research. Figure out whoto get overwhelmed by the huge number of tasks in
your prospective customers will be, and go talk tofront of you. When you get in that state, step back
them! Ask questions. Find out what they'll pay. Considerand think, "What can I do today that will get my
their feedback and modify your design accordingly.message in front of my customers?" If you're thinking
Look at other companies that are selling similarabout this all the time, the other details will fall into place.
products or services. Find out what they charge, howGood luck.