The United States has always been the land of opportunity; anyone has the right and “theoretical” opportunity to start a business and be successful. The risks of starting your own business can be high, but the rewards can be well worth it.
There are many reasons why a business fails. They include poor product concept, lack of a reasoned business plan, undercapitalization, insufficient marketing efforts, and changing market economics.
So with statistics like these, how do you become a business success and not a business failure? The answer is to have a viable strategic and tactical plan, seek help, and be smart about how you set up your business and how much you spend to do that.
Five Steps for Starting a Business for Under $1,000
1. Strategic Plan. All of us have heard of a “back-of-the-napkin” story about how a small idea turned into a successful business—and these stories do happen. However, it is typically the basic concept that happens on the back of a napkin, not the actual plan to bring that concept to the market. The first step is to develop a well-thought-out business plan that addresses key success factors such as:
- Name of firm. This should be descriptive of your service or product; such names generate more web visits than ones using fictitious or personal names.
- Owner or owner-to-be. Are you going to be the sole owner or will you have investors or/and partners?
- Information on the business. Information about the type, nature, and products of your business.
- Market analysis. Consider customers, competition, and barriers to entry and success.
- Market strategy. How will you generate sales, promote your product, and what media will you use to promote your product or services?
- Management. Can you manage the business and also serve your customers?
- Financial. Can you make money?
StumbleUpon recently published an excellent business plan guide; also consider reviewing startup information provided by the
IRS. Help from experienced mentors is free through organizations such as
SCORE, an organization of volunteer business mentors who provide specific advice and resources to newly created and growing businesses on a no-cost basis. There are many other organizations, such as your local chamber of commerce, that can also provide mentoring and guidance.
Cost: $0
2. Web Identity. Nearly everyone is online today. Customers access and search the Internet for services and sellers through searches. Suppliers and banks look at your website for credibility and presence.
But your web identity is more than just a website. It starts with an email address with your business name (for example, yourname@legalconsultants.com) and a domain name (www.legalconsultants.com).
A few years ago, creating a website was expensive and required outside technical consultants. Now it is quick and easy to do it yourself. Consider companies such as
GoDaddy.com to choose a domain name, email address, web hosting, and website design. GoDaddy will even do your online billing.
Cost: $300 per year
3. Office Space. Even if 52% of all small businesses are home-based, that does not mean you need to look like you work from your home. Customers looking at an office address can usually tell the difference between a professional address and a home address. Also, if you’re meeting with clients, you’ll project a more professional image if you meet in an office setting versus a home office. For this reason, consider signing up with a fractional executive office service.
A very economical service is
Regus, with office locations worldwide; office space is readily available for startup entrepreneurs on a just-in-time basis. Regus offers several membership levels: Blue, Gold, Platinum, and Platinum Plus. For example, a Regus Blue membership card is free, while a Regus Gold membership card costs $59 per month (with the first month free). With a Gold card you get shared space, Internet connection, and telephone access at Regus locations worldwide, 8 hours a day, 5 days a week.
If you’re a frequent flyer, don’t forget to check out your airline as many airlines provide Regus cards free to their elite members.
An added bonus of using executive office space is that you will be working beside other entrepreneurs. Hanging out at Starbucks between meetings will be a thing of the past.
Cost: Free (Regus Blue card);$0 from an airline, or $649 per year (Regus Gold card).
4. Business Cards: Believe me, you will need them. A paper carryover from the past, they are still widely used and critical to a new business. There are many online business card services, but companies such Office Depot and Staples offer quality cards for as low as $10.
Cost: $20 for 300 cards
5. Social Media: Depending on your type of business, you will want a social media presence.
LinkedIn, with more than 380 million members, is regarded as the business site for connecting with other businesspeople and offers excellent posting features for articles and blogs.
Facebook is more of a social friends site than a business-focused site, but it’s also an excellent tool for “getting your word out” to your friends and customers. Both Linkedin and Facebook allow you to set up a commercial page for your new business.
Cost: Free
TOTAL COST: $969 dollars
To be a successful entrepreneur, you need to provide a service or product that customers want to buy, and that you can provide at a profit. And, of course, it’s not all about the money—it also takes hard work and long hours. But with a bit of planning and a little bit of money, you can beat the odds and start and grow a successful small business.
Related Articles on AllBusiness:
For local business information on 15 million businesses, visit InBusiness.com.
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