Birmingham Small Business.com

JobJournal:

Know yourself. Take time for self-assessment. Have a passion for your product or service, and use your accumulated experiences to find a niche that enables you to use your strengths and offer new solutions to your market. Believe you can succeed, and commit to your goal. Don’t go into business to get rich quickly.

Acquire education. Enroll in courses offered by professional and trade associations, chambers of commerce, formal educational institutions, and government agencies.

Gather information from many sources. The Small Business Administration is a one-stop information center (SBA.gov, 800-827-5722). Successful entrepreneurs and the public library are other excellent resources. It’s also helpful to have a mentor and participate in activities sponsored by local chambers of commerce.

Develop a business plan and identify start-up capital needs. Conduct a market analysis, outline a marketing and management plan, create financial projections. Consider location, expenses and taxes. Investigate laws and licensing requirements for your enterprise and locale. Acquire accounting skills.

Budget. You can’t expect a profit the first few years and you should double whatever you think the cash outlay will be. If you can live on your partner’s salary and don’t require much start-up capital, you’re okay. If not, you may have to live on savings or work on your business part-time, keeping your full-time job.

Ensure you have necessary tools. Firms that report high levels of web connectivity earn about twice as much as those with none. A business phone, fax and copy machine are other requirements.

Market your business. Join industry organizations and establish relationships with customers, suppliers and other stakeholders. Communicate continuously and constantly evaluate how your business can add more value. Take advantage of e-business opportunities.