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Starting your own business isn’t just a job.
It’s an adventure.
If starting a business was as easy as crossing your arms and blinking your eyes, everyone would be doing it. The reality is, it takes work – hard work. But if being the boss is your dream, it’s a small price to pay.
Research and Write
It’s a good idea to research your idea and check out the market forecasts, but there’s nothing better than getting out there and talking to real people about your plans. Visit the competition. And then talk to actual customers to see if your product or service will have any appeal or value to them. Once you think you’ve got an idea that will sell, write a business plan. But start small: try writing a plan that illustrates how you are planning to stay in business for 90 days. That means a four- or five-page summary accompanied by a more in-depth overview of your product and market segment. Check out the government’s www.sba.gov/starting/indexbusplans.html) for pointers on writing a business plan
Fast Fact! Female-owned businesses provide more jobs than all of the Fortune 500 companies combined.¹
Show me the money
Poor management can sink a small business faster than anything. But inadequate financing runs a very close second. Not only is sufficient capital and financing needed, but careful planning and the knowledge of how to manage your money is essential. That way you can side step the more common mistakes, like finding the wrong type of financing or underestimating the amount of money that is needed to start.
And remember, not all money is the same. You have two types of financing to consider – equity and debt financing. Before you decide, you need to consider your debt-to-equity ratio, that is, the relationship between how much you've borrowed and how much you've invested in your business. If you have a high ratio of equity to debt, you should probably seek debt financing. But if your company has a high proportion of debt to equity, you should probably increase your ownership capital (or equity investment) for additional funds.
Can I work from home? »