I came across this article today that I wanted to share with you. These ten tips are essential for creating a successful new business. For example: ” 7. Listen to your Gut If a deal doesn’t seem right, it probably isn’t. If it seems too good to be true, it probably is.” When we first started our company, All Star Accounting, we were so eager to get going that we would take any and everyone as clients. We would see some red flags that we deemed small items and proceeded with the contracts. It didn’t take long to realize that those red flags that we ignored burned us in the end. It took a few instances to recognize the signs but once we did, our business flourished. I hope these 10 tips (From Alexis L. Scott) help you or someone you know.
Sarah Nance, CEO
All Star Accounting
Alexis L. Scott, Esq. | Tue, 08/24/2010 – 10:05am
With the economy still up in the air and the drain the corporate world has been taking on its employees, we are seeing more and more small businesses starting up.
Starting you own business could be your life-long dream or simply a way to supplement your income. Before you get started, there are a few things to consider.
1. Show Me the Money
Before you get started, write down a financial plan. Consider all things that you need to get started. This includes all costs, expenses, supplies, licenses, etc. Continue to track your expenditures so you can see where your money is going and how you can better use of it.
2. Actually Making a Profit
Sometimes a side business will not generate a profit and you won’t be able to write-off expenses. If you are making a profit, don’t forget to give the government their share, or the IRS will find out.
3. Use Independent Contractors and Drop-Shippers
At first you may not have the resources to hire full or part time employees or to have all inventory on hand. It will be more cost effective to hire people on a one time basis before your business is up and running. If you are opening a store, find drop-shippers that will handle all your inventory and shipping needs. This way you will not have to purchase an entire store of inventory.
4. Business is Business and Friends are Friends
Never do business with friends or family. If you do decide to go into business with friends or family make sure the entire agreement is in writing and everyone is very clear on how the business will operate. In this and all business partnerships, it is advised that you seek independent legal counsel to help with the terms of your agreement.
5. Learn from Other’s Mistakes
Most likely someone has been there, done that. Join networking groups, find others that have similar businesses or business models. Take them out to lunch and get their advice of what worked and didn’t work from them. There is no need to recreate the wheel. Ultimately you will save yourself time and money.
6. Use Free Help
There are multiple resources out there that are free, especially for small business. Check your local small business development centers, sba.gov, and grants.gov to get you started. The myriad of free online resources can help you advertise your business and you will be able to get your first client without spending any money.
7. Listen to your Gut
If a deal doesn’t seem right, it probably isn’t. If it seems too good to be true, it probably is.
8. Don’t be Bullied
In every aspect of life there are bullies. Don’t ever let yourself be rushed or pressured into a decision.
9. Be a Cheapskate
Cut costs, run your business from home, don’t hire anyone, do things yourself, etc. Starting a business can be expensive. Save as much money in the beginning as you can. Also, this will get you in the habit as your business continues to grow. You won’t spend needless money.
10. Plan B
Passion, dedication, and a belief in your business are essential to success. However, make sure you have an exit strategy. This will lower your stress level when you know in the back of your mind you will be ok. Cautious optimism is essential.
Alexis graduated from Thomas Jefferson School of Law in 2007. In law school she served as Student Body President, Public Relations Director for OUTLaw, and competing member of the Mock Trial team. Upon graduating she accepted an associate position with Anthony J. Solare and was recently named partner. At Solare & Scott they provide legal services focusing on criminal defense – including juvenile and military cases, family law, and civil litigation. A true believer in justice and equality Alexis hopes to influence positive change in our legal and political system. You can contact Alexis at619.234.7575 or online at SolareandScott.com.