| This week
VOL. 26 NO. 48, JANUARY 30-FEBRUARY 5, 2006
Small Biz Toolkit:
Take startup process step-by-step
By Charles Sim and Sharon O’Donoghue
Special to IBJ
Starting a business is a big move, requiring a lot of time, determination and energy. It’s easy to feel overwhelmed, but taken step-by-step, the process is less daunting. Ask yourself:
Is this right for me?
Business ownership isn’t for everyone. Successful entrepreneurs must possess expertise in the business itself and in its operations—sales, marketing, finances, customer service and personnel, for example. Small-business owners wear many hats, and many ventures are undermined by the owner’s lack of marketing savvy, sales skills or financial acumen. Assess your skills and motivations to determine if the self-employment work environment is a good fit for you.
Will my idea fly?
Not all ideas make good business opportunities. Successful ventures must survive the “marketplace” test. To find out if your idea will pass, ask these questions: - Who will buy this product or service, how much would they be willing to pay and where would they buy it?
- Who else offers this product/service, and how do they compare?
- Is the timing right for this product/ service?
What’s the plan?
Individuals who complete a solid business plan prior to launch are more likely to succeed. Both the business-planning process and the completed plan are valuable. In the planning process, you’ll think about many crucial business aspects in an organized way.
Am I ready to launch?
Moving from planning your business to running it may include some or all of the following steps: - Finalize the business’ legal structure.
- Acquire business insurance.
- Apply for licenses, permits and business identification numbers.
- Set up a record-keeping system.
- Set up necessary equipment.
- Settle on equipment, suppliers and labor.
- Establish prices.
- Open a business bank account.
- Prepare marketing materials.
Remember to start small, keep fixed expenses to a minimum and develop a support network.
Sim is executive director of the Neighborhood Self-Employment Initiative; O’Donoghue is director of its Central Indiana Women’s Business Center program. The not-forprofit offers free counseling and low-cost training for entrepreneurs. For more information, go to www.nsibiz.org.
|
