Being your own boss is tempting! That’s why hundreds of thousands of small businesses are launched every month. While not every one makes it, small businesses make up a significant portion of our economy.
Maybe you have a special skill or product you’d like to launch. Do you know what steps you need to take to make it a business? What to think about? Or even the resources available to you?
Know What Traits Good Small Business Owners Have
First off, not every business owner will have all the key character traits. But a lot share these qualities:
- Discipline
- Frugal
- Confidence
- Good Communication Skills
- Good Record-Keeping Skills
- Motivated
- Optimistic
It’s a good idea to start thinking about what your strengths and weaknesses are. That way, you’ll be able to fill the gaps with people who will complement you.
Create a Business Plan
A formal business plan will allow you to spell out the details of your business and provide you with a 3-5 year plan. You’ll need to figure things out like:
- What makes you unique from similar businesses?
- What is the lifecycle of your product or service?
- How you’ll market your business
Be prepared to do a lot of market research!
Pick a Location
The location may seem easy at first – maybe you figure it will just be your house – but this is actually an important decision. Depending on where you live, you may not be able to run a business out of your residence. And any place you rent you’ll need to check the zoning laws to ensure you’re in the clear.
Figure Out Financing
How much your business will cost depends on what it is. Chances are you’ll need several thousand dollars to get off the ground, which may require a loan. Be sure you can obtain the finances you need to get started before you’re in too deep.
Pick Which Type of Business
You’ll need to get a tax ID and figure out which type of business you will be, for example:
- Sole proprietor
- Partnership
- Limited Liability Company (LLC)
- Corporation
- S Corporation
- Nonprofit
Know Your Employer Responsibilities
If you’re going to have employees, you’ll need to figure out what that entails. Get to know the laws and options prior to hiring.
Use Resources Available To You!
The U.S. Small Business Administration has a number of resources to help you out. Check out the site here.
