How to Start a Business

So, you want to know how to start a business? Your own business?

If you don't know yet, most businesses fail within their first few years of trading. There are no guarantees that you will succeed, and there are many risks when you are starting out. Careful planning can eliminate many of these, but even the best plan in the world cannot take everything into account. If you want to know how to start a business then its time to evaluate your own personal character strengths and weaknesses as compared to a successful owner of a small business. (Don't forget to be honest with yourself)

Has your get up and go got up and gone?

If you don't know how to start a business, then you will need plenty of drive and determination to succeed. While drive and determination are fairly broad concepts, the ability to get out of bed in a morning, not have that second cup of coffee and not just browse through your emails before you start calling potential customers or suppliers are all qualities that will help you succeed.

Now, where did I put that..

We've all been to the small workshop where the owner can't find anything, didn't know you were coming (even though you phoned last week) and hasn't got your order ready. It's far from impressive.

Let's face it, being organized, following up on the details and managing projects is all down to you. Even if that means delegating.

And while we're talking about tricky situations, how well do you handle those situations or deal with different (sometimes difficult) personalities?

As a potential business owner, you will need to get yourself technically up to speed and develop working relationships with all the people you need to make your business work. Customers, suppliers, staff (hopefully some day), accountants, probably lawyers, and of course the bank manager.

Let me think it over

I struggle with this one myself. Sometimes there's just no substitute for straightforward - quick from the gut - decision making. As a small business owner you will often need to make rapid decisions under stressful conditions or tight deadlines without the ability to consult.

Ok, but what about when you've already been on your feet for 12 hours, your children kept you awake last night and the computer just crashed? Physical and emotional stamina is essential. This is because you can only live on the adrenaline and excitement of being an entrepreneur for so long. There is nothing more frustrating than wanting to keep going, but having nothing left in the tank.

All that for that?

There's nothing left for you. Oh no. You've been a busy fool. There's a lot of published research that shows poor planning or more accurately lack of planning is responsible for many business failures, but not as many as running out of money. Sometimes it's not just the "start a business" part of how to start a business, it's the "how to keep going" that counts. That means cash. Cash is King for a reason. Without it you just can't go on.

Many different operational aspects of your business end their life either in or out of your bank account. Things like managing inventory (stock), delivery and production schedules and quality control all need to be managed through your financial statements. A tight fist of control and mastery of your business dynamics will have you ordering that new car soon enough!

Get your credits into the emotional piggy bank first

The first few years of business start­up is the hardest. It's important that you brief your family so they know what to expect but as important is to make sure you have their support during this time. You're not going to be as well off as you used to be until you make the business profitable and reach beyond break even. You're going to be short tempered, tired and crotchety at times and you're not always going to be home in time for dinner

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