Lesson 1: Before You Start
Are you ready?
Now you're ready to get started. You'll have to make some decisions and then take corresponding action. You have the raw material and information to make those decisions and then it's just a question of going through the process.
1. First you have to make the decision to proceed. This still doesn't mean that you're actually 100% committed to the particular small business that you're thinking of starting but now you're going to spend some money and put some serious time and effort in. The more committed you are, the better your chances of success. In your particular situation you may still not be able to do this full time; you may still need to keep your job and do your new business on the side; you may still want to go to job interviews; or, you may be able to put all your time and energy into your new venture. In any case, when you decide to go ahead, you're at the next stage.
2. Secondly, you have to decide what your business is going to offer. You have your list of things you enjoy doing, can do well and for which there is an accessible group of customers. Before you decide what to choose, review your own needs for this business.
Is the business going to generate a second or extra income? Then attach more importance to what you enjoy and less to finding the customers.
Is the business going to be your main source of revenue? Then you need to make money right away. Choose something that has a ready-made group which will buy from you and, if it doesn't involve what you enjoy doing the most, try to find something related - you can always move the focus of your business once it is established.
While your business should be profitable and while you have certain financial goals for it, don't make the mistake of starting it in a field you don't like - you may as well get a job.
3. Is your financing in place? Do you have the money you'll need to start up in hand and do you have the financing for being successful and filling large orders in place? Do you have a reserve if things cost more. Do you know which banks you're going to deal with (preferably at least two, if one starts making trouble).
4. Have you checked into your income tax situation. You're going to make major changes in the way you pay income tax and the amount you pay. This change will take effect the moment you start spending money on your business - make sure that moment is properly chosen to your personal best advantage.
Now you're ready to go and the rest of the course will guide you through the decisions you have to make and the actions you have to take.
