Starting a Small Business Part II: Setting Up
Before you start looking for customers, you need to make sure you have everything you need to begin. The very first thing you will need is a plan. Your plan will include everything you will need here in out, which makes it very important. You will call this your business plan.
You wouldn’t start up a bakery by just popping a couple of trays of cookies in the oven and then passing them out of a basket to random people on a street, would you? Well, I hope not. If you did, I hope you would at least not call it a bakery or expect to make much of a profit.
The first part of your business plan should include everything you’ll need. Write down everything you might possibly need. It’s always a pain to start baking cookies to sell in a few hours and then find out you ran out of eggs. You might as well be prepared.
You may need to invest some money to buy any necessary equipment, or you could borrow it.
For example, if you need a lawn mower you could borrow your parents. For smaller, less costly things, like displays and coolers, you could borrow money from your parents or someone else until you can pay them back. Make sure you keep careful records of what you borrow, who you borrow it from, and how you’re going to pay it back. By being painstakingly accurate in your business details you will ensure repeat business with clients, including your parents.
Next on the plan will depend on if you are offering a good or service. If you are selling goods you need to find a place to sell. If you’re selling cookies, are you going to pass them out on the street (probably not a good idea) or sell them in small boutiques? If you are offering a service, you need to decide where you are going to set up shop. Where will you keep your lawn mower while you’re not mowing lawns?
If you feel you have a great idea that may possibly be more work than you can handle yourself, ask a friend that you trust to join you and start a partnership. Two bakers are often better than one, and you may have different things you like or are good at. One can bake while the other cleans, or does the marketing and delivering.
When working with a partner it’s important to make sure that you are compatible. If you partner up with someone you don’t get along with or that let’s you do all the work, find someone else. Businesses often break down because of differences between partners and lack of leadership. If it’s your idea and your plan, make sure you both know how things are going to be run.
You will also need to plan out how much you think you will sell, how many clients you want to take on, and your selling strategies. You need to advertise as well. If no one knows you’re mowing lawns, you can’t expect some random person to just come up to you and ask you to cut their grass. It might happen, but it’s not likely.
Plan out all your actions. Where will I sell? When will I start baking? When will I start selling? Etc. Ask yourself any questions you can think of to make sure you’re prepared.
Go to Starting a Business Part III: Jump Right In
Go back to Starting a Business Part I
