Small Business Startup Tips
You can obtain a small business by taking it over from a family member or purchasing an existing business, or by creating a first-time startup business.
But, to be successful, you must have some beginning small business startup tips.
For the Best Business Tips Possible, Get a Free Consult
The first-time startup business is one you startup completely from scratch, with no clients, no office space, no employees, and no funding. But, you have enough education and experience in the field that makes you feel as though you could pull off a successful business venture in the next 3-5 years.
It takes at least that long for a small business to grow to a decent amount of profitability. I have compiled a list of small business tips for you to get started.
With a brand new business, you are starting up everything for the first time for the business to get up and running. The totally new business is by far the most rewarding but also the riskiest of business ventures.
Women and Cars Go Together, Know How to Buy Right
The failure rate of a new start-up business is very high because most people don’t know the 500 small business startup tips you should know before starting. Most internet businesses are started from home, but successful ones can still incur high costs from the beginning. The cost includes software, marketing, advertising, virtual assists, and more.
They go into business with hope and a prayer instead of; 1) Knowledge of the field, 2) Knowledge of running a business, including city, state, and federal regulations, 3) Extensive experience working in the field, 4) Business accounting principles 5) Plenty of money to last before you are profitable 6) Have the ability to deal only with facts.
If you are diligent and take things slowly, it could work out. But you must be patient and willing to work concentrated long hours to get started.
Also included in a new startup venture are these small business startup tips:
Obtaining A Mentor
1. Talk to many, many people who are already in the field to get the big picture. Ask them to be completely honest when they answer your questions. Tell them you need to know all of the good and bad about the business. If you don’t know anyone in the field, you may not be ready.
Get the Experience First
2. Preferably, you should have worked in the field for a few years to see if it is a viable business. Your experience in your chosen field should be deep and thorough, with no guessing games.
The amount of time and money that goes into a small business is too demanding to be a guessing game. If you fail, the recovery could take years, if not decades.
Research is Essential
3. Do research, lots of research about the field. Find out if regulatory agencies are getting a lot of complaints about the type of business you are considering.
There is research everywhere now. You can do small business research at the small business website or sba.gov. Go to your trade association or professional website.
Know Quality Financing
4. Be careful about financing. If you can’t get a bank loan for the business, that may be a hint that you are at high risk and may have a high rate of failure. There are many predatory places of financing.
Most of these offer high-interest loans or balloon payment loans. It is best to wait until you raise your credit score, save the substantial down payment, and have a high grasp of business techniques.
Venture Capital Funding
5. Consider venture capital funding for the business. This is very difficult but possible. You should have a mentor who can guide you through the process. There is a complicated web of business plans and contacts within the industry that you need to access.
6. Consider starting as a non-profit venture and getting a grant to run your business. Be careful; you could be jailed if you can’t account for every single penny of the money within your business.
Running a non-profit also includes first getting a 5013C. Hiring a grant writer to write grants for your non-profit business is a good idea. Writing a grant takes skill and experience.
Get All of the Right Business Ideas You Need to Succeed
The Right Accountant
7. You must have a close relationship with a good CPA (Accountant), a good bank, and a good business attorney. Your knowledge of small business accounting should be thorough so that you can choose a competent accountant. The wrong or missing accounting could damage your business for life.
8. You must understand the different types of business leases there are and that you could lose all of your personal property (home etc.) if you default on a business lease. Research the types of leases; they are: 1) Net, 2) Net, Net, 3) Net, Net, Net.
Many people sign Net-Net-Net leases with a five or 10-year commitment without knowing what it means. Business leases are an area that causes many small businesses to fail, and understanding a lease is complicated.
Obtain a good real estate attorney to advise you on the different types of leases and negotiate one you can afford as a new business. You may consider starting with a month-to-month lease if you use your own money instead of bank financing, and you don’t have to make leasehold improvements.
Your Bank Loan Tied to Your Lease
If you have a five or 10-year loan, or if you have expensive leasehold improvements and are on a month-to-month rental. You could be asked to leave at any time.
The best way to start a small business is from home if that is possible. Running a business from home also poses many risks.
There are also leases on business equipment. These are especially tricky; no all the ins and outs before you consider one.
I have signed two 5-year leases with a previous business I owned; I feel this makes me fairly competent in discussing business leases.
Don’t forget to sign up for your free eCourse on Money Tips.
I’m so glad you started with getting a mentor. Mentorship is the most overlooked success tool there is. All great tips for entrepreneurs – and the timing is great since there are so many now looking to start their own business.
Thanks Jen, I also like the blogging information you share.
These are all great tips for anyone setting a a business, whether traditionally or online. Research is definitely something that cannot be overlooked before starting a business.
This is so helpful for those who want to start a small business. I wouldn’t want to start one, but I do love to shop small businesses!
So do I. I think it is important to support small business, they put their heart and soul into their business.
These are great tips. I love that you mentioned getting a mentor. If possible, it’s always better to learn from a successful business person than try to muddle through on your own.
Yes, you are right.
I agree start with a mentor! It’s always good to have someone with experience you can turn too when you have questions.
That’s true. Make sure you get someone who is experienced, open-minded and willing to share information.
Do a huge amount of research. Even a small shop requires a lot of due diligence before you make your final decision.
Many a business can be run effectively from your computer.
I have small business and I started by following examples. These are great tips
That is a form of mentoring, great!
Great information and inspiring too now I feel empowered to check if I can own my own business.
With lots of research, mentoring, business courses, and finding a fb group for advice you can do it.
This post is really informative. Thanks for sharing these tips.
Glad it helps, and thank you.
These are great tips. My husband is a small business owner and has really benefited from having a mentor!
These are such great and helpful tips. Starting up any business can be hard at first. It’s nice to able to learn more through some helpful tips like yours.
I kinda naturally picked up business skills when I started. My blog ended up turning into a side hustle when I least expected it. I’ve been working on several other ventures and have made sure that I have all my legal ducks in a row. I don’t have people coming to my home so I never thought about how leasing a home might end up being a problem. I use a P.O. Box for all business transactions. I’ve been doing this for several years and haven’t had landlord issues.
Very good. If you don’t have home visits for clients that is a big plus.
You know what they say, “no pain, no gain” go for it. My first business was a dentist office, as
a dentist. It was very expensive, I was very nervous, but after a friend told me that, I jumped in.
After a lot of research and a few mentors of course. Take some courses on running an etsy shop.