Some Helpful Tips to Help You Launch Your Business
Regardless of where you are in your life - a recent college graduate, someone looking to start a new career path, or a retiree looking to live his or her dream - now is a great time to start a small business. Why you ask? The turnaround of the economy, the availability of capital, and the number of organizations that support small business owners are all great resources that entrepreneurs can use to launch their dream. Here are some tips you can also use to get your small business of the ground and running.
Important Information on Small Businesses
According to studies done by Dun & Bradstreet, companies that have fewer than 20 employees stand less than a 40 percent chance of surviving past four years and only a nine percent of making it past 10 years. Additionally, restaurants only stand a 20 percent chance of surviving past the second year. The surprising aspect of these statistics is that only 10 percent of businesses that do close do so involuntarily because of factors such as bankruptcy - the other 90 percent close because of factors such as a lack of success, lack of bringing in desired income, or the owner realizing how much work is involved in running a small business.
The Four "M"s of Business
As a business owner, it is important that you own a business that is a good fit for you. When thinking about the business model you want to purse, ask yourself these important questions:
- Do I have a personal interest or hobby that could be converted into a business?
- Do I personally believe in the service or product I am interested in selling?
- What or who do I care about the most?
Answering these questions will help you to narrow down and decide which business model will work best for you.
Small businesses are very diverse in needs and the finances needed vary greatly from one to the next. But, regardless of what type or size of business you open, it is necessary to raise capital, manage that money, and budget costs. In most cases, start-up funds for the business come from the entrepreneur's personal savings and possibly in combination with bank loans. Studies vary on how much money a new business needs to get started - experts give answers ranging from $10,000 to $80,000.
Although there are millions of businesses out there that operate with a sole proprietor, in order to help the business grow, chances are you will need to hire employees. Even though you may believe you are an expert in all aspects of your business, there are likely other professionals out there who can handle marketing, sales, and finances better than you can. Bringing these professionals into the fold can help to elevate your business to the next level and help to streamline and improve its growth overall.
Marketing is a very important part of a new small business. Unless you were able to land a great store front location with a lot of traffic, you will need to let consumers know that your business exists. Marketing can be very overwhelming, so make sure you are focusing your efforts on a niche market and specific type of target consumer who is most likely to purchase your products. Consider using social media and other unique platforms to help get your message into the market and draw consumers in.