A lot of folks think it would be just great to start their own little business. Just think. No bosses, set your own deadlines, That would be great. Well, maybe yes and maybe no. My Dad owned a small business for many years, so let me pass on some tips.
First, get all of your required licenses and insurance and keep immaculate tax records. I have known many who started small businesses and ignored this and everyone of them ended up in a lot of trouble. Yes, it will cost you some money, possibly a lot, but you must do it right or suffer the consequences. Trust me. You will get caught.
Second, be ready to lose money for several years. It takes time to get going. To get an SBA loan, you must prove that you can get along for 5 years, making loan payments, covering all operating costs, and, of course, surviving personally. This may sound harsh, but it is really simple basic sense. Most small businesses fail and most do so in the first year or two.
Third, look at your community. You may really be a great cook and have a mind to start a little diner, but, will your community support one. If they are a bunch of small eateries around, probably not, unless you can do something extraordinary. Even then, you will have a hard go. Want to start a lawn service? Find out how much competition you will have. If everyone around you has a service, you will have to underbid them all and you must ask yourself if you can do that and make a living.
If you think you can make a go, great. But, you may want to think about keeping your regular job and pursue your new business in your spare time. This way you can get a feel for how you will do.
If it seems that I am trying to discourage you, you are right. Starting your own little business is a big step and you will suffer a lot of headaches. If you make it, congratulations. You will be glad you did it. But, consider yourself very lucky. Most fail.
No comments:
Post a Comment