Tips on starting your first business are shared by David K. Randall on Forbes.com, and he extolls the benefits of taking the plunge.
However, there are many pitfalls to avoid when starting up a business and as Randall points out, even highly competent professionals can make a mess of the basics.
The first thing to remember, says Randall, is that it's not the best idea in the world that makes a great company; it's a sound business plan.
He comments: "You'll want to develop a strategy that will identify what your product or service is, how you will market it to potential customers and what it will take to feed your family and keep the lights on until your venture starts to turn a profit. You'll also want to know who your customers will be."
Once your business plan is clear, you need to secure the funding, which is far from easy in the current economic conditions - after all, it's not called the 'credit crunch' for nothing. If banks and other financial institutions are not forthcoming, Randall suggests tapping savings, or friends and business associates who believe in your abilities.
Positive cash flow is a problem for any new entrepreneur and even if your product sells, it can often be between 30 and 90 days before you get payment. With that in mind, the article suggests starting out with a financial plan that makes conservative estimates as to when you can expect to receive revenue and comparing those statistics with the amount and dates of your debts.
Finally, Randall recommends getting as much help as possible from the various organisations that are set up to help small businesses.
Starting Your First Business Off Right
David K. Randall, Forbes.com, 29/01/10
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