What Is The Best Way to Start a New Business
Written by Fran McCully
Starting a business is easy. It can be done in a day!
Starting a business that lasts and is profitable takes a lot more time and effort.
Follow these tips to improve the chances of living the dream while eliminating risk to the success of the small business owner.
Start your business and keep your full time job. Build a solid foundation for the business while keeping a full time job. Yes, sacrifice, discipline, and a great deal of hard work will be necessary to get a business going. If you are not willing to work hard and sacrifice, a new business will fail whether you keep a full time job or not.
Keep a full time job longer than necessary. Losing that income is the last thing you can afford. Remember, capital and cash flow will be tight. Work hard and work efficiently on the new business so that the full time job can be left on schedule.
Focus on the numbers. Business and personal financials will tell you when it's finally time to quit a job. Don't let emotions overwhelm.
Remember, deciding when to quit your job and go full time will be the hardest decision to make, so make it the right way with numbers not emotions.
Time is not your own, it belongs to your small business now. Welcome to a schedule that will be overwhelming and daunting. Remember this is going to be very hard! When the normal work day ends, the small business work day begins. Decide how many hours to spend on the business. Now add at least 50% and commit to that schedule.
Watch every penny. Don't be tempted to spend the profits, reinvest every dollar earned.
It may be necessary to hire sub-contractors to keep up with the flurry of business activity while you are still working.
Don't think of profits as income yet. Think of profits as the tools needed to build a bigger stronger foundation for a new business.
Cut personal expenses to the bone. Eliminate every bit of personal spending not absolutely necessary.
Most small businesses fail because they run out of money or make poor long term decisions due to chronic money problems.
Be sure there is a business plan in place, including a competitive and marketing analyses, and a financial plan going out at least 8 years. Also have a cash flow sheet and a budget. These are just a few of the things needed in place before opening the doors on the new business.
Having all of this in order is imperative before quitting that full time job. You will work every evening and most weekends because someday, when the numbers are right, you will quit that full time job and finally realize the rewards of becoming a true entrepreneur.
Article author
About the Author
Fran McCully of Your Administrative Solutions specializes in bookkeeping/accounting, database and business-plan development, and human resources. Fran partners with small businesses, mirco companies, solo-preneurs and individuals. To receive your free report, "Know Your Cash Flow," and discover additional resources from Fran McCully, Financial Strategist and Bookkeeper, please visit http://www.YourAdministrativeSolutions.com
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