Starting your own business – the basics

Posted: September 8, 2013 in Business startup

So, you have decided to start your own business? Before you go about preparing a business plan, here are some basic questions you need to answer:

  1. Do you have a name for your business? This isn’t as easy as it seems. You may have chosen a name only to find out later on that someone else uses it and has registered the name. Can you find out if this name isn’t taken?
  2. How will you operate? A proprietorship or a corporation?
  3. Will you work from home or rent an external office?
  4. How is the local (micro) economy in your immediate market? While there is never a wrong time (or best time for that matter) to start a business, the conditions of the local economy must be analyzed. If you plan to start a contracting business in a town with no growth, well — be careful.
  5. What is the state of your personal finances? Most small businesses are under-capitalized. The slow-to-arrive revenue must be financed somehow. Usually by your own resources. How good are they? If they aren’t good, be very cautious about starting an energetic business venture.

Okay, if you have all of those bases covered, the hard stuff begins….. preparing a 3-5 year business plan.

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