Having the idea of starting your own business is one thing. How to do it is another. Here are the steps on how to start your own business to get you started. 

1. Determine if starting a business is the right thing for you

What are the skills needed for running a business in general and the specific type of business you want to own? Here are some to consider.

• • • Basic understanding of financial documents and budgeting

This would include a Profit and Loss Statement, a Balance Sheet and a Cash Flow Statement. These 3 documents will help you understand the health of your business. They will tell you when you need to pay attention to the money coming in and/or the money going out. They will tell you if you have priced your products or services correctly.

You will also need to know how to create a basic budget that you will operate your business within. You can decide how simple or how complex that will be. Will you use a software program such as QuickBooks or will you use a simple Excel spreadsheet? Even if you have someone else doing your books you will want to be able to understand the financial reports they are giving you.

• • • How to market and promote your business

You can have the greatest product or service in the world, but if no one knows about it you cannot survive.

• • • Basic technology

Long gone are the days where a pen and paper will do. Efficiency and accuracy require at least a basic knowledge in how to use a computer, utilize social media, a POS system and email.

• • • Communication skills

Being able to communicate with customers, vendors as well as networking to grow your business will be required.

• • • Time management

One of the first lessons you will learn as an entrepreneur is that there are far more things to be done than there is time to do them. You will wear many hats in the early days so you will need to learn to prioritize what must be done. Understanding the method that works best for you will help. Is it a “To-Do” list, some sort of project management or time blocking that helps you get it all done?

• • • Stress management

This will come as no surprise to you. There WILL be stress as you start and grow your business. Finding ways to deal with the stress is what is important. Finding that work/life balance is one important step. Having some outlet to let off steam, when needed, and giving yourself a mental break will help you get through the rough times. A friend, mentor or confidant can help.

• • • How to delegate

This can be a tough one for entrepreneurs. It can be hard to let go of any part of this new idea you are putting out into the world, but it is the one thing that will help you to not only keep your sanity but allow you to scale your business. When you begin to think of things you can hand off to someone else, consider the things that you are not good at and things you do not enjoy doing.

• • • Organization

Nothing can cause greater stress and have bigger financial ramifications than being unorganized. Put systems in place from the very beginning and utilize them. 

• • • Creative thinker

The ability to think creatively will help you in every area of your business as you tackle problems and explore ways to grow your business.

• • • Learner

The smartest entrepreneurs are the ones who are always learning. It might be learning something new that relates to your business or learning a new skill that will help you be a better entrepreneur. 

• • • Confidence

If there is one thing you can be sure of it’s that being an entrepreneur is not for the faint of heart. Having a sense of self- confidence will get you through the tough times that all entrepreneurs go through.

• • • Work with others

Most entrepreneurs do not start off with employees. In fact, 73% of small business owners have no employees. That does not mean that you don’t have to worry about this. You will need to be able to work well with your vendors, perhaps your local government officials and other local business owners. First, and foremost, you will need to be able to work well with your customers who will help you succeed.

• Self-starter

One of the first things entrepreneurs notice when they start their first business is that everything is up to them. There is no longer a boss telling them what to do and when to do it. Being self-motivated is what it will take to keep your operation up and running.

What to do?

Learning the steps on how to start your own business starts here- deciding if this is right for you and if you have the necessary skills. Here are two things to help you get started.

1. Make a list of all of the skills you think you would need to be a successful entrepreneur. If you are not sure, do some research to find out what you should expect. Take time to do an honest assessment of where your strengths and weaknesses lie.
2. Use a SWOT form, such as this, to identify your Strengths, Weaknesses, Opportunities and Threats. An honest assessment in each of these areas will help you get started on the right foot.

SWOT Worksheet

We’ll keep working our way through the Steps to Start Your Own Business with step #2 in next week’s blog. If you’d like further help, contact us at rhondaloweconsulting@gmail.com