|
You need to "know" if
you want to grow."
|
|
Starting your own business on a shoestring
Starting your
own business: 12 Things to consider
 When starting your own
business there are many things to consider. However, starting your own
business does not have to be the fearful misadventure that many
"wish-to-be businessmen" turn it into, resulting in their failure. 12
important keys to starting your own business may include:
- Do not rent a
workplace. It is always best when starting your own business to
start a "home-based business". You might work in your home or
garage. Renting a workspace includes signing a lease and making
long-term commitments which you may not be prepared to do.
- Do not hire
employees. The fixed salaries involved when you hire employees may
result in extraordinary "cash flow problems". Also, the paperwork
involved in payroll taxes and other employee related expenses may be
prohibitive. If you need help try to hire family members or
"contractors".
- Do not
incorporate. Start your company as the "sole
owner" or what is referred to as a proprietorship. Incorporating is
expensive and requires a lot of paperwork including corporate minutes,
and payroll taxes, just to name a few. You can incorporate as your
company becomes larger and more complex.
- When you're
starting your own business, avoid borrowing money.
It always makes it much more difficult when you include
"debt" into your constellation of worries. The largest majority of
businesses fail because of "cash flow problems", frequently due to the
high volume of debt.
- Avoid
excessive expenses for equipment. Try to
select work based upon using equipment that you currently own. Use
your own equipment or rent until you can afford to buy.
- Control
initial expenses. Avoid frills, use what you
own and try not to spend money for fancy desks or furnishings. Buy
only what you absolutely require when starting your own
business.
- Avoid or
limit inventory. Never tie up your "cash
flow" with excessive inventory unless you can move it really quickly.
- Select
cash-payment opportunities when starting your own business.
Always try to select opportunities for which you
can get paid quickly in cash. If your work will take time to
complete, get a partial payment at the very beginning. Often, this
will be enough to pay for the job’s expenses.
- Go with
what you know. Use the experience you have
gained in hobbies and previous jobs etc., when starting your own
business. Avoid lengthy training and expenses, unless you have the
opportunity to learn before you begin your business.
- Select a
business that fits your personality or that you have a passion for.
When starting your own business, you want a
business that you are comfortable with or have a passion for. Work
that is comfortable and that you are passionate about may not even
feel like work.
- Avoid
businesses with high legal risks and potential liability.
Avoid products and services which may lead to a lawsuit
when starting your own business. Do not make products which make wild
and unsubstantiated claims or have potential for health and safety
risks.
- Finally,
put a fair amount of the profits back into the business.
When you start making money, try not to spend most of
it for personal needs. Try to keep a significant amount in the
business to improve it and make it grow.
These rules are very important when starting
your own business on a shoestring. As the business begins to grow, you
may want to alter several or many of these suggestions.
Information provided
by Will Davis’s Start Your Own Business for
$1000
By Paul Susic MA Licensed Psychologist Ph.D. Candidate
President/CEO Susic Psychological Consulting P.C.
|
|
|
