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Ten Critical Steps To Start Your Successful Small Business

Sep
29
2021
Wed 6:30 PM to 8:30 PM

This event has been canceled

Ten Critical Steps to Start YOUR Successful Small Business The desire for personal and financial independence is the dream of most Americans. With that in mind, it’s no wonder that small businesses (some 28 million according to the Small Business Administration) line most streets in every city. And why not, because almost everyone has a business idea they want to try so it's no wonder that small businesses are everywhere. But wait….how many if those businesses are successful over time? How many have what it takes to survive? Actually, only about 60% of businesses last even two years, and at the five year mark only about 50% are still standing. So why are some business ventures so successful while others struggle just to survive? For entrepreneurs and their families, starting a small business is a major decision and one that requires careful planning, both short and long term. Success is often indicated in the start-up phase, so the foundation processes are critical when starting your business. These Ten Steps will get you started on the track to survival, success, and prosperity! Step 1: Find a Compatible Business Mentor Trying to find answers to a myriad of tough business questions and seeking information about business operations is very difficult for most start-up entrepreneur. Whether you are in business already or just starting out, finding an experienced business mentor can make a substantial difference in the success of your venture. Business mentors have the experience to answer questions and offer timely counsel and alternative perspectives on business scenarios. They have established networks that can offer opportunities and save you from costly mistakes. There is no better teacher than experience, especially in the business world. Look arounds and find an experienced professional mentor that is right for you and the right fit for your business. Step 2: Research Your Market Where exactly is your target market? What are the demographics of that sector – the characteristics of the customers who makes up that market? Does a market for your product or service actually exist? If so, who then are your potential customers or clients? Why will they buy from you? Who is your competition, and what value can you offer that differentiates you from them? What can you do better? The best market research you can do is get out into your market and talk to potential clients, vendors and business owners (obviously not potential competitors!). Tell them about your business idea and listen carefully to their responses. Step 3: Validate and Balance Your Business Idea Regardless of how unique or creative your business idea is, it must first pass the critical test of satisfying a market need, in other words solving a market problem. If there is no market need for your idea then there can be very little customer demand. As you analyze your business idea, ask yourself if it is unique and valuable to the client - something that will set your business apart. If you are satisfied that there is a market for your product then walk through the most important aspect of your business analysis which is going through planning process of how it’s going to work from an operational view, and how you can leverage your personal strengths to move it from analysis to planning to execution. Step 4: Develop a Business Plan Don’t make this task too complicated. The most important parts are, (a) the Executive Summary where you tell the reader in plain language what your business is all about and, (b) your financial projections which show you and a lender or investor your future sales and profitability. Your business plan is one of the steps will help you turn your dream idea into a functioning small business. Business Plan templates are available online and from many educational sources such as Community College Small Business Centers at no charge. Writing a business plan will help you identify the strengths and weaknesses of your proposed venture, and it’s always an essential requirement for a bank loan. Among other topics, your plan should tell how you’re going to bring your product or service, to market, how you will manufacture it or purchase it if that is the case, and if you will need vendor suppliers. Step 5: Establish a Business Relationship with an Accountant. Unless you have experience in for-profit business accounting, don’t try to set up your books and accomplish your accounting functions – leave that to an experienced accountant who can do three things for you, (a) provide you with monthly accounting statements, (b) do your taxes, and (c) counsel you on business matters. Without a current accounting system in your business, you cannot manage your budget, nor will you know important benchmarks such as sales, cash flow, net profit, deductions, depreciation, interest charges and taxation. Don’t delay this important process because if you do, you take the chance of having to go back and research important business general ledger data that will be critical to your initial state and federal tax returns. It’s best to set this function up from the beginning with your accountant to avoid delay and needless headaches. Step 6: Plan Your Finances There are two specific areas of research when you run the numbers for initial funding for a small business venture, (a) start-up costs and, (b) working capital. Your analysis should illustrate your initial start-up costs, for instance for equipment, leasehold improvements or you marketing campaign as well as your cash needs to cover ongoing expenses before you are profitable. One way to proceed is to put together a spreadsheet that estimates one-time startup costs together with what you estimate you will need to keep your business running for at least 12 months. Those numbers combined less your owner’s equity injection is the initial amount of money you will need to have on hand from a lender or other sources. Talk to your business mentor or counselor about the different ways to finance your business such as: (a) small business loans from a bank or alternative lender, (b) investors, (c) Crowdfunding, or (d) bootstrapping and self-financing. Open up a commercial business bank account and move ahead with your plan to obtain the capital you need to get your business started. It’s exciting to think about growing your business to offer more and better goods and services, but the cost of those goods and services can be substantial, so financial planning for capital now and in the future is critical. Step 7: Choose a Business Structure and Register Your Business Name Your small business can be a sole proprietorship, a partnership, a limited liability company (LLC) or a corporation. The entity you choose may impact both liability and taxation so it is best if you talk with an accountant about the correct structure for your venture. In North Carolina, the Secretary of State is an excellent source of information about business legal entities. Through the Secretary of State, and for a fee, you can form your business entity online with the business name and a credit card. You will also need and EIN Number which can be registered by going online at the official IRS Website. If you purchase at wholesale or sell at retail, you will need also to register your company with the North Carolina Department of Revenue for a Tax ID Number. Step 8: Set Up Your Business Location You will either be home-based or have a brick and mortar site that you own or lease or share as an office area. Your operation may also call for a retail or warehouse area with a loading dock that requires easy ingress and egress to your site not only for deliveries but also for customer convenience if that is in your plan. In making your plans, consider shelf stock, equipment needs such as computers, fork lifts, dock plates or other specialized items. Determine how these will fit into your planned space and if business and be carried out efficiently there. Be sure your business location is compatible for the type of business you will transact and talk to your accountant about leasing versus purchasing. Consider what leasehold improvements must be accomplished by a general contractor before you can move in and who will pay for those costs. Before you sign any contract, it’s always best to consult with a real estate agent or attorney who will represent your best interest any time you are dealing with a real estate matter. For instance, if you need financing, it does not make sense to sign a lease prior to a bank commitment for the financing. Step 9: Patience and Flexibility in the Decision-Making Process Unrealistic expectations have been the downfall of many entrepreneurs. New business owners must have realistic expectations about sales, growth, and profitability. They must be prepared financially and mentally for the many challenges of starting a new venture - and that takes patience. Seldom do new ventures take off toward success at a hot pace. It’s more likely to be a slow, grinding process and move more at a reasonable rate. Patience is a great resource when the pace is not as fast as an entrepreneur anticipated. Most entrepreneurs are looking for quick success, a one-up over their competition, and ways to improve their bottom line. When the pace is slow, and that realization sets in, new owners can quickly be disillusioned. Relax, be flexible and recall that now is the time to remember that patience and flexibly are virtues critical to making sound decisions. Step 10: FOCUS You are the creator of this business. You are in charge. You alone have the will and imagination to make it survive, succeed, and prosper. It is imperative that you gather the discipline to FOCUS on the proper and correct management of your new venture through a clear sense of direction and commitment to success. When you see an urgent need in your business, focus on that need and attend to it. If it is a problem, address it quickly without procrastination and before it festers into something more complicated. Starve problems and feed opportunity. Despite the many distractions we all face in daily life, your commitment to focus will remedy complications and produce positive outcomes for your venture.

Speaker(s): Robert Rehder


Fee: No Cost

Phone: 910-272-3631

Location

Robeson Community College Small Business Center
Workforce Development Center, Building 18
5160 Fayetteville Road, Lumberton, NC 28358
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