What To Consider When Starting Your Own Company

Most people have thought about working for themselves

, but there are obstacles which need to be considered before starting out down this route . Above all other advice, you must have a business plan. You must follow that business plan. It is the backbone of your business, so make sure you do this step before you go any further.

Once you have a good plan, you can break the other considerations into clusters that will help you organize your new company.

Phase One

* Capital Do you have enough money to get started and sustain the business until it becomes profitable?

* Credit What's your personal credit score? Most new companies have to borrow money, and even though you're borrowing for a business and not yourself, the banks know you are ultimately responsible for paying the bills.

* Products and services people want It's one thing to love ice cream and want to sell your grandmother's recipe. It's another thing to sell it in a blizzard. Get the idea? Just because you love the business idea doesn't mean the consumer will love it. You have to sell products and services people want or need.

Phase Two

* Staffing Will you need employees or will you run the company yourself?

* Payroll Will you make enough money to manage payroll? That includes paying your payroll taxes.

* Vendors You'll be doing business with various vendors who will supply your company with goods and services. Make sure you find those people before you open for business.

* Store front Will you run your business from home or will you need to buy or rent a space? If this is the case, you have to figure building overhead into your budget. That includes utilities, insurance, upkeep.

Phase Three

* Marketing Part of your business plan will include a marketing strategy. How will you advertise your company?

* Inventory If you are selling a products, start with a small inventory and grow as profits grow. If you provide a service, follow the same advice.

* Expansion You're a success! How will you expand? Put something in your business plan that will guide you to save for expansion. Companies have to make money to grow, so don't take all the profits and put them in your personal bank account.

The final bit of advice is to seek advice from a successful business owner. That person is successful for a reason, and you want to know that reason and make it your mission.

by: Henry Collins

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