How to Start a Business the Right Way by Taking a Closer Look at Your Business

Have you considered (or decided) what you will do and how to do it?

Here are six points for starting a business the right way by taking a closer look at your business:

1. Write a brief mission statement in 30 words or less that explains your reason for establishing your business. Be direct and put on your “thinking cap!”

2. Develop Company Goals and Objectives: Goals are destinations – where do you want your business to be? Objectives are progress markers along the way to achieving your goals. For example, a goal might be to have a healthy, successful company that is a leader in customer service and that has a loyal customer following. Objectives might be annual sales targets and some specific measures of customer satisfaction.

3. Business Philosophy: What is important to you in business?

4. To whom will you market your products?

5. Describe your industry. Is it a growth industry? What changes do you foresee in the industry, short term and long term? How will your company be poised to take advantage of them?

6. Describe your most important company strengths and core competencies. What factors will make the company succeed? What do you think your major competitive strengths will be? What background experience, skills, and strengths do you personally bring to this new venture?

Simple Steps for Starting Your Business

Tip 1: Start Working on a Business Plan
Have you considered what your start up costs will be? 

This may sound a bit crazy, but starting a business NOW may be just right for you! Many extremely talented and experienced individuals have found themselves forced into early retirement or job loss due to corporate down-sizing, companies closing or corporate mergers.

Start working on a business plan – “If you fail to plan, you plan to fail!”

The FIRST things to consider are your new business start-up costs. Don’t underestimate! Nearly everyone who has ever started a business has underestimated the costs, and then faced the danger of running with inadequate capital reserves. The key to avoid this situation is to adopt a rigorous approach to your research and planning. Here are five things to consider when planning a new business:

1. Expenses – Begin by estimating expenses. What will it cost you to get your business up and running? Pay attention to detail and develop categories for both tangible assets (equipment, inventory and services (remodeling, insurance). Research vendors and comparison shop.

2. Contingencies – Add a reserve and explain how you decided on the amount.

3. Working Capital – You can’t open with an “empty wallet.” You need a cash cushion to meet expenses while your business gets going!

4. Sources – Turn your attention to where funding will come from. Consider the amount that you will invest yourself, how much will be by investors or partners and how much will be from borrowing.

5. Collateral – If part of your plan supports a bank loan request, you will need to show what assets are offered as collateral and estimate their values.