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There are few things more exciting than starting a business. However, there are also several risks associated with stating a business. The more you know about the risks and how to avoid them, the greater the chances your business will be successful.
As you consider starting your own business, ask yourself the following questions:
- Are you a self-starter capable of providing your own motivation?
- Do you have the support of your family and friends in your business venture?
- Do you have the education and real-life experience necessary to succeed in your line of business?
- Are you capable of dealing with the stress associated with owning a business?
- Can you obtain your own health insurance?
- Can you afford to quit your current job? Have you saved enough money to live on while you start your business?
- Are you willing to work longer for less pay while your business develops?
You should also consider the following regarding your potential business:
- Is your business concept feasible?
- Do you know how you will finance your business?
- Have you researched the products and/or services you plan to provide and determined there is a market for them?
- Have you developed a marketing plan and chosen a name and logo? Are the name and logo legally protected by trademark?
- Do you know where you will open up shop?
- Do you know your competition and how to deal with them?
- Are you up to speed on business regulations and tax requirements?
- Do you have access to professional services, such as an attorney, accountant, banker, and insurance agent?
- Have you determined the best business structure for your operation?
All businesses should have a formal business plan. A formal business plan contains the following elements*:
Summary
-Statement of purpose and objectives of the business
-Business structure
-Definition of the market served/customer profile
-Description of products and/or services
Market Evaluation/Marketing Strategy
-Location of the business and map of competitors
-Advertising and promotional programs
-Market analysis
Owner/Management Team
-Owner/management qualifications for all partners
-Owner/management and partner functions
Operations
-Location in relationship to ideal customer base
-Location and facilities requirements
-Staffing requirements/organization chart
-Training requirements/initial and on-going
Financial Summary
-First year financial analysis
-1-5 year profit/loss projections-breakdown of start-up costs and
capital expenditures
Risk Analysis
-Primary areas of risk and viable solutions
-Identification of potential business difficult ties and viable solutions
Partnership and Investor Considerations
-My partner(s) and I have complementary skills and compatible personalities.
-My partner(s) and I have a written understanding of our place in the
organizational structure and our respective responsibilities.
-My partner(s) and I have a well-drafted and legally binding partnership agreement that includes a “buyout” clause.
-My investor(s) and I have a well-drafted and legally binding agreement.
-I am able to provide current and accurate financial information to my
partners and investors.
Financing
Click here for a Directory of Sources of Capital
Click here for a list of local financing.
Branding/Marketing
In addition to establishing your business, you'll need to build a brand for your business. You will also need a strategic and effective marketing plan to ensure your customers know who you are and what you offer. CREG can help you develop your brand and assist with your marketing strategy.
Business Counseling
Businesses can receive counseling through the CREG mentoring program. Learn more about our mentoring program.
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