subject: Three Small Business Startup Tips [print this page] Three Small Business Startup Tips Three Small Business Startup Tips
Politicians often claim that small businesses are the backbone of the American economy. While much of what they say is debatable, in this one instance they are 100 percent correct. Small businesses employ a stunning 52 percent of the workers in the private sector, according to the U.S. Small Business Administration. They represent over 99 percent of employer firms.
Hair salons, diners, pizzerias, movie theaters, and hardware stores are almost always small businesses. Yes, America is home to a lot of chain stores. But for every McDonald's or Barnes and Noble there are approximately 300 small businesses. In this article we will talk about what it takes to start a new small business.
Even in the darkest days of the Great Recession, small businesses opened their doors in America. The U.S. Small Business Administration's Office of Advocacy reliably informs us that 627,000 new businesses opened in 2008. The total number of small businesses in America is now over 27 million.
Those are exciting statistics, but if you are opening a small business, you are in for a fight. It isn't easy, so here are three guidelines that you should follow if you want your small business to be successful.
Tip 1: Don't go into business with your friends!
We know it's tempting, but working with close friends seldom works out. The reason for this is simple: friends sometimes take advantage of each other. If they get into a jam, they often lean on their friends, which can lead to resentment and petty disagreements. Not to mention the fact that friends are often reluctant to criticize each other for poor behavior. So, instead of lecturing them for showing up late or leaving early, friends often let things slide, which invariably hurts the business.
Tip 2: Do your research!
It might seem simple, but you'd be surprised how many new business owners jump right in without considering the marketplace. A serious businessperson should learn about the market, the competition, and the overall industry. Starting a new diner might seem like a good idea, but what if the main diner in town dominates the market? What if the top diner has put three other startup diners out of business? These are things a prospective business owner should and really must know before he invests his time and money.
Tip 3: Start Slowly
Bill Gates and Warren Buffet didn't conquer the world over night. At one time these future multi-billionaires were simple small business owners. They took the time to learn their industry and expanded slowly. A new business owner is expected to work his behind off for at least the first few years. It is this work and experience that gives him the experience he needs to know when it is time to branch out. Investing huge sums of money in a new business before you know the market is a recipe for disaster. As they often say, you have to walk before you can run.
Following these three simple tips will not ensure success, but they may give you the experience and prospective you need to succeed in a competitive marketplace.
