According to the U.S Small Business Administration reports, big corporation have cut up to 4 million jobs from 1990. However, small businesses have been able to counteract this by creating 8 million new jobs.
Small businesses have fostered the growth of the American economy even during the trying times. Stats has it that there are about 23 million small business across the United States, which keep producing more and more jobs on a daily basis. Small businesses have become a crux contributor to the economy, so much so that it can be said to be the backbone of the American economy.
That being said, it is no wonder many Americans are constantly itching to get into entrepreneurship and start their own business. Sadly, it is only a handful of Americans who actually walk the talk, for most it remains a mirage never to be reached.
Those who don’t get to start, always have an excuse to justify why they were not able to. Daily pressures of life, ranging from a stolen credit card, the toilet getting clogged, their TV program was on or any other endless and sometimes amusing excuses that life brings up to interfere with life.
For those who are bold and decisive enough to walk the talk. Their efforts become highly rewarded once they start seeing the physical and financial manifestation of their effort and investment in every subsequent success in business. But before you jump into it, you must understand that the world of entrepreneurship is a world full of risks, not all that venture into it have a happy ending.
To venture into business, you will invest money, time and sacrifice some things. It’s only fair you have a good story to tell at the end of it all. The following are things you should know, before venturing into business:
- Brainstorming: This is perhaps the most important thing you should do before starting your business. You should think of the product, its demand in the market, the competition, strategic location, the cost of operations, profit margin. You should exhaust all the possibilities and have a clear plan on either how to capitalize on them or overcome them.
- Put it down on Paper: After brainstorming you should now put all your ideas in writing in an orderly manner that outlines the flow of events clearly. This is referred to as a Business Plan, and it can be said is a documented path for your action plan, and shows how serious you are. A Business Plan, (according to the US SBA), should have an executive summary, a detailed company description (with detailed structural information), market analysis, financial projections and marketing & sales strategies. If these seem complicated to you, don’t be scared. There is a plethora of Business Plans templates available online which could serve just as good.
- Look for Capital: This is the lifeline for your business to be. The word capital sums up: the start-up funds, equipment, manpower and working space. Find a suitable location, hire the right crew, get the right suppliers. You will also need to keep a close eye on all of your expenses, and get a good grasp on tax deductible and taxable.
- Aggressive Marketing: The fastest and cheapest way to start is by setting up social media account, the earlier, the better. With this, you can easily get your family and friends to like and follow, but you need to pay attention to your presence. You should develop a marketing plan from the onset, and do a follow up with a front-end website; maybe a bit later on. You should also have business cards, a brand name, logo and a launch event.
- Proper Accounting: It is imperative you get this part right, and not only for the sake of effective management but also for the IRS. Ensure you set up your accounts payable, bookkeeping and do your taxes as early as you can. Failure to get this right could mean you will run into financial problems or worse trouble with the IRS. You can set up your business as limited liability company or as an S Corp. To help you on your accounting, you could use accounting software like Quickbooks, GoDaddy or Mint. You should also hire an accountant well informed on tax regulations to help you with your taxes.
- Attention to Details: As the captain of the ship, this means you have a lot of responsibilities, and to avoid finding your head along with your boat under water. You need to pay attention to everything, no matter how mundane; do regular checkups on you inventory, payroll, human resource, social media. To help you manage all these, make a list and follow it strictly.
- Always be Proactive: Keep setting constant goals, encouraging continuous success, always boosting motivation. Never keep your guard down on your competitors, always seeks customer’s feedback and even your staff. Give your employees actionable challenges for them to accomplish, reinforce quality standards. Always keep things moving.
While the above data speaks mainly of the North America’s economy. The fundamental principles still applies in any part of the world. Whether you live in Africa, Asia, Europe or any other part of the world.
For more update on entrepreneurship, startups companies, small and medium sized businesses. Make it a point to visit GeekSavanna.com in the future as we prepare to launch come September 1st, 2015. You can also follow us on Twitter @GeekSavanna or Facebook.com/GeekSavanna.