To start a small business could be the solution to increase the income you have coming in; to provide money if you are unemployed; or to give you the opportunity to say goodbye to a job you don’t like.
However, before you go charging off to start a business, let’s look at some considerations/steps to contemplate:
- Make a list of five businesses you want to start.
- Next, look at the each business on your list and ask yourself these questions for each business:
- How much do I know about this business?
- Will I have to get additional schooling or training to this business going?
- What are the initial startup costs, e.g. how much money is going to take to launch; will the additional training or schooling require money?
- If the business requires money, do I have the money?
- Do I know how to write a business plan?
- Will I need a partner?
- Do I need employees or contractors?
- What time of bookkeeping do I need?
- Do I know how to do payroll?
- How long can I afford to keep the business running before I run out of money?
- How long before the business turns a profit?
- Am I able to do it on the side and keep my current job, until it generates the same amount I am making now or more?
- Will I have to have inventory?
- How much will shipping costs run or can I do drop- shipping?
- Do I require a business license or state certification or licenses?
- What type of business structure do I need/want, e.g. sole proprietorship, partnership, Limited Liability Company, Corporation or S-Corporation?
- Do I need an Employer Identification Number?
- What’s the best bank to use for my separate business account?
- Can I operate the business from my home? If not, do I lease space or buy space? Can I afford to lease or buy a space?
- What type of insurance do I need?
- Do I need a sales tax permit?
- How will I market my business?
- What type of website do I need?
- As you ask each question for each business idea, be honest. If you answer a question with something that precludes this business for you, scratch it off from your list.
- Once you have narrowed your list to one business, then proceed cautiously with the idea.
- Do not take on any debt to launch the business.
- If you are married, discuss this with your spouse. Your spouse must be in total agreement with your idea. If your spouse has reservations, hear them out. God often uses your spouse to keep you away from a bad situation.
- Look for the competition. If the field is too crowded, how likely are you to succeed.
- Look for a mentor. SCORE is a great resource. It stands for Service Core of Retired Executives.
- Do your research.
- Remember that it will take time and a whole lot of work to make a go of the business. Are you ready to invest your time, energy, resources, and money?
While this list is long, I know it is not everything. It will get you started. Good luck.
Proverbs 12:15 – The way of a fool is right in his own eyes: but he that hearkeneth unto counsel is wise.
Proverbs 11:14 – Where no counsel is, the people fall: but in the multitude of counsellors there is safety.
Proverbs 19:20-21 – Hear counsel, and receive instruction, that thou mayest be wise in thy latter end.
Proverbs 15:22 – Without counsel purposes are disappointed: but in the multitude of counsellors they are established.
Psalms 1:1-6 – Blessed is the man that walketh not in the counsel of the ungodly, nor standeth in the way of sinners, nor sitteth in the seat of the scornful.