According to the SBA, 99.9% or over 37 million businesses are considered small in the US. Small business is the backbone of our economy. Have you been thinking about starting a business? Here are some essentials to consider moving forward in the process.
The products or services to be sold and your target customer base. Sounds obvious but I have been approached for coaching to start a business with an unknown product. Is there a retail gap in the community that you wish to fill? Give careful thought to prevent unreasonable expectations.
A market analysis. This investigation will reveal the feasibility of the business succeeding. Key competitors are identified and an idea of what it will take to win part of their market share. A demographic study tells you how large of a potential customer base exists who may have an interest in your products.
Pro Forma financial statements. Due diligence is needed to create at a minimum profit and loss, balance, and cash flow analysis. They will indicate how much money can be made and how many investors and partners are required to launch the business and keep it operating.
Startup and working capital. Using the proforma statements, determine how much capital will be needed upfront and for the crucial early years. Set a budget to plan how the finances will be managed and track the health of the company.
The business location. If a physical store is needed is there enough appropriate space for lease located where traffic will be attracted? Does it fit the budget you have set? If setting up a home-based business, what house improvements, furniture, or equipment is needed?
A staffing plan. How many employees will be required to operate the business? What benefits can you afford to offer to attract a talented and loyal workforce? What will be the complete cost per employee?
The startup plan. The schedule includes preparations, capital needs, and when the doors will open. Don’t forget the legalities of naming, licenses, permits, and all the details required to show you are a viable business keeping the government happy.
These are many questions but are necessary. There may be more essentials to consider, so take time to give it a great deal of thought. Find a mentor or coach or someone who has gone through the process. They can give valuable advice. Good luck.
Ted Saul is a business coach and author who assists with Business Plans, Project Management and Career Management. He earned his MBA from Regis University along with a Masters in project management. Ted can be reached on LinkedIn or by emailing TedSaulbiz@gmail.com.
