How to Start a Business

Nowadays more than 70% of Americans are considering starting their own businesses. Entrepreneurs and small business owners create jobs and improve the economy. According to the American Express Open Small Business Saturday Consumer Pulse 2011, 93% of US consumers consider it vital to support small businesses owners and 89%-deem independent business positively impacts on jobs and taxes. 73% of clients deliberate purchasing from or using the services of small businesses or firms in order to support small businesses.

Unfortunately, many small businesses have failed, as business owners enter this field unprepared.  Because of the amount of failure, people consider starting their own business to be very risky.  But if done correctly, a small business can have a great chance of succeeding.

Reasons for starting your own business:

1.      You get to be your own boss. You get long-awaited freedom so you can make decisions independently without reporting to your boss.

2.                  Modern business is versatile, that’s why you can choose the field you are interested in. You can turn a hobby into a lucrative company and enjoy your work.

3.      Flexible schedules allow to work as often as you see fit. Certainly, you shouldn’t lie in bed all day, but you get to create your own schedule.

4.      You can express yourself, develop, and realize your potentially brilliant ideas.

5.                  In time your business can be very profitable. Ultimately, you may be rewarded and pleasantly surprised by results of your business.

6.      You have the opportunity to work at home. Besides convenience, it can save you time and money.

Here are a few tips for starting your own business:

1.      Create your business on the basis of demand. Furthermore, your business should target the satisfaction of your actual and potential customers, based on their needs.

2.      Marketing is the key to success; it is intended to promote your business. That’s why you should study the science of marketing, especially internet marketing. Today, internet marketing is a necessary, convenient, and efficient way to draw the attention of potential customers, and as a result, it can lead to sales.

3.      Don’t expect instant results and profit. You don’t need to be faster than your competition, you need to be better.

According to Frank H. Levinson, an American entrepreneur and investor and one of founders of the Finisar Corporation, there are 10 things you need to do to start a business:

Spend money on an excellent team and modern equipment

Inform people about your company

Increase limited capital

Define your company’s needs

Search new opportunities

Have a supportive family

Focus on mass markets

Rely on new ideas

Procure and sell to real clients

Choose a trustworthy partner.

How to build successful business in 9 steps:

1.      Any business is based on a great idea for making money. Analyze the market to find money making opportunities. Once you determine what kind of product or service you will be providing, ask the following questions: are your products/services necessary for customers? Who exactly will buy them? How many competitors will you have? How will your business impact on the market?

2.      Make a financial plan. If you want to get a loan from a lender you must present your formal business plan in writing. You should make a list of your business goals and think about ways to achieve them.

3.      Choose the type of company you will run: a sole proprietorship, a partnership, a corporation and a limited liability company (LLC). The type of business organization will impact on your business name, responsibility and taxes.  Eventually you will be able change this form as your business grows and develops.

4.      The name of your business is very important. Make sure it’s unique so that you can register it.

- The business name of a sole proprietor has to be registered with the state or district clerk.

 - Generally, corporations, limited liability companies, or limited partnerships register their business name when you file an application.

5.        You must get the appropriate small business licenses and permits. You must know what licenses and permits you need when registering.

6.      If applicable, you should think about the location of business and the equipment you need. Even if you work at you, you may still need equipment.

7.      You should choose a good accounting system; bookkeeping is very important to your company.

8.      Or you can get an accountant, but experts advise first time bookkeeping yourself.

9.      Marketing is necessary to promote your business, so do your research about modern and successful marketing. And don’t rule out social media which is very relevant these days.

According to SBA, two out of three jobs are provided by small business owners in America. SBA invested $42 billion in financial support of small business owners. Small business owners and entrepreneurs have a positive impact on American economy; that’s why President Barack Obama has reduced taxes, promoted investment, created necessary conditions for growth, and eliminating many obstacles for small business owners.

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