| Steps to Starting a Small Business |
| Going into business for oneself has many advantages but may be challenging for some. Your business will have a higher probability of succeeding if you are prepared to go into business and have a plan to help you through the set- up and daily operation. The business plan, discussed in a following section, will provide you with the structure that could make the difference between getting by and succeeding. Successful entrepreneurs are not only prepared, they're also skilled in marketing, finance, and management. The Self-Evaluation section will give you some insight on determining if you want to purse owning your own business. |
| Self-Evaluation |
| A self-evaluation is the first step toward understanding your motives for starting a business and evaluating your skills and experience. Your ability to make decisions and take responsibility for the results, as well as your willingness to work longer hours are two important realities that must be considered.
Answer the following questions to help determine if you should pursue owning your own business:
- Who am I? Without a clear definition of your roles and goals (age, gender, wife, father, I like, I value, I prefer, I would rather, I want out of life etc.), you will lack a foundation.
- What skills do I have? Do I have skills that are in deed saleable, usable, and practical? Would I hire myself to do the job?
A) What are my strengths and weaknesses?
B) Do I know how to, and do I like to, make decisions?
C) What kind of boss am I? Do I have the ability to effectively manage human resources?
D) Do I know how to sell, and can I actually do it?
- Who are my competitors, and what will make my business unique? How will I carve out a niche in today's market?
- What will it cost to open my business? Do I have money to cover my Business and personal expenses for at least the first twelve months? Where will the money come from and how will I obtain financing if needed?
- What is the market demand, what is my market, and where is it located? How do I reach my market, and where is my best location?
- Besides money, what will this cost? Everything has a price!
A) How much time am I willing to commit to my business?
(Expect to work a minimum of sixty hours per week.)
B) How much will my business affect my family and social life?
Evaluate your knowledge and skill levels in each of these areas to better understand what assistance you may need. The following skills are crucial for the survival of any business:
- Personal Management and Law
- Accounting and Bookkeeping
- Financial and Break-Even Analysis
- Marketing and Promotion
- Taxes and Tax Management
- Production and Risk Management
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| * All material contained within this Start-Up Kit is believed to be current as of April 2002 and is intended for informational purposes only. Government regulations, business protocols and related information are subject to change. |
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San Diego Regional Chamber of Commerce.