If you're an aspiring entrepreneur, learning how to start a small business can be a tedious task, especially if you do not have enough background on the kind of industry that you're planning to enter. While some people's business acumen shoots through the roof, there are some who need to be guided each step of the way in order to get a business to take off the ground.
These people are the ones who need advice starting from which business to put up to where to get funds to start up the business. They're not lazy. You can't say they want everything spoon-fed to them. They just don't have the business savvy. Yes, they may be good at the actual nitty-gritty of the business, but it's in starting the business that they need help.
Fortunately, here are steps starting your own business you would do well to consider:
1. Think about what type of business you want to put up and who your target client will be. Will you be selling stuff in your business? If so, which age demographic do you wish to target? Do you think the product will appeal to both men and women or will it cater to only a single gender preference? These are some of the things you need to keep in mind. Don't try to be all things at the same time to all people. Remember, you cannot be everything and you cannot please everybody.
2. If this is your first venture into business, try to talk to several people who have experience in the same industry. Talk to an established entrepreneur, or a counselor who knows the tricks of the trade.
3. One way a novice entrepreneur can get started in his venture with very little personal risk is to draft a business plan. Planning your business and writing them down in paper can make a huge difference in your venture because it shows others, especially lenders from whom you will be getting business loans, that you are serious with business, have done the planning, and can maintain focus.
4. You can choose between two types of business financing - equity financing and debt financing. No matter what you choose, though, remember that investors and lenders will look at your credit history and credit rating.
5. Consider applying for SBA loans. SBA loans are not actual loans, though. They are loan guarantees in which a financial institution such as a bank is the actual lender and the SBA guarantees a partial repayment to the lender should the business fail.
6. If you can finance the business in some way but need help in procurement, particularly in buying materials or other things for the business, you might want to apply for a business credit card instead. However, you would need to know how credit card work before you apply for this because the last thing you want is to default on your payments.
7. You can apply for business loans from banks or financial institutions. However, after settling your financing concerns, you have to choose the legal form of your business whether it's going to be sole proprietorship, partnership, or corporation. Your choice of legal structure will generally depend on availability of capital and tax laws. Before you make a decision, it is recommended that you seek the advice of an accountant or attorney first.
These are some of the simple steps to keep in mind when planning to start a business.