These days, more and more people are drawn into starting their own businesses. Rather than getting employed and be under the supervision of managers, most people would prefer to having their own business and be their own boss. This is a very good proposition to most people and at the same time a big challenge. So how do you actually start your own business. Here are some things that you might want to know regarding small business planning and financing.
Having your own small business demands extensive planning, conceptualizing of innovative ideas and unfailing commitment and dedication. Those who plan to venture in this need to carefully consider all pros and cons , as well as make all the necessary preparations to ensure the success and sustainability of the business.
It all begins with an idea
Decide what type of small business you are going to have. Choose whether you will have sole proprietorship, a partnership or a corporation. Then proceed to the basic elements of a small business. Determine if Things like business name, place of business, what resources to use, provided that products and services are already identified, and business goals; all these things need to be clarified first before you can proceed. This will form and develop the identity and personality of your business.
Tobe competitive and successful in the market, you need to have a product plan that will be unique and new to the customers of the business. In this stage, the product’s design and features as well as the services offered are conceptualized and developed. In developing products, standards set by the government must be followed. See to it that no violations are made with regards to the quality and characteristics of the products or services.
Study the Market
For you have better picture of the business field, you need to have good knowledge of the market. It is important to know who are the business competitors, who are the customers, behavioral patterns of consumers, strategies used by competitors, and supply and demand situation. Knowing the different seasons of market sales of the businessas well as the trends is also vital. Most common tools for doing market research is the questionnaire. Focus group discussion survey is also a very good instrument for market research.
This is usually the most serious part in starting or sustaining your small business. There are various ways to to finance your business. For those who doesn’t have sufficient funds and needs financial assistance, you can try to get funds from banks, venture capitalists, grants from government or from what we call angel investors. If you are fiancaially blessed and money is not a concern for you, then you can simply use your own savings.
Once the “who to get the money from” issue is already addressed, you can start with the financing process. First and most basic of all, you need to determine the amount of money that you need to start your small business. If you are planning to get external funding from banks or investors, you need to write a business loan proposal which consists of a clear definition of the nature of the business. Prepare financial starements and line up references. This will help you in your application. Your business plan need to be carefully structured as it will greatly affect, together with your financial history and credit rating, the approval of your loan.
Tips and comments
You also need to know the right banks to approach and apply. There is a list of commercial complied by the Small Business Administration which shows which banks are open and accommodating in lending to small businesses. This can help you find the right bank to apply for your loan.