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New Year – New Beginnings and a New Business?
Are you planning to start a new business this year? First, make sure you consider the following important building blocks of a successful business.
 Business Plan
Before starting your business, you should spend a considerable amount of time creating a business plan. A business plan is essential because it gives you a framework for starting. Also, it shows banks and other possible lenders that you are serious about success, and that your business has what it takes to make their investment in it worthwhile. The business plan will also help your team of professionals (business attorney, accountant, etc.) understand your goals, making them better able to properly advise you.
Your business plan should include (1) a summary of the services or goods you will offer; (2) an analysis of why you plan to offer those particular goods or services; (3) the benefits your clients or customers will receive for choosing your goods or services; (4) an analysis of your business strengths, weaknesses, opportunities, and threats (a “SWOT Analysis”); (5) an analysis of your competitive advantage; and (6) a summary of the marketing strategies that would be beneficial to your business.
Team of Professionals
You should surround yourself with a strong team of professionals that can help you plan for the future. At a minimum you should consult a business attorney and an accountant. Your attorney and your accountant can work together to make sure that you choose the right business entity (corporation, limited liability company, partnership, sole proprietorship, etc.) and that you meet the legal requirements for setting up your business. Also — especially important if you will have business partners — the attorney can help you create an operating agreement that will dictate the responsibilities each partner will have in the business, and outline how your business will continue to operate in the event of any unexpected events. Your accountant will also make sure that your business reports income properly and files the correct tax forms.
You should also build relationships with people in your community who also own businesses. These business owners can share their own experiences with you and inform you about what did and did not work for them. Also, business owners can be a good source of referrals for your product or service.
If your budget allows, you should hire a web designer to build a website for your business. A good website is essential because it adds legitimacy to your business and gives potential customers a resource for learning more about what you offer. Other professionals that can help you succeed: an advertising professional (who can help you build a brand that includes a logo, business cards, letterhead, advertisements, etc.); a marketing expert (who can tell you where you clients are and how to reach them with your services); an employment lawyer (who can help you put in place the proper procedures to hire and manage your employees); and a financial advisor (who will help you manage your personal finances).
Marketing/Networking
Once you have started your business, get out there and promote it. It is important to build an awareness of your business, because you can only be profitable if people know that your business exists. A low cost ways to promote your business is through social media (Twitter, Facebook, and LinkedIn). Building a presence through social media helps potential customers get to know you personally, which may help them choose your business over a competitor. Just be careful that you are tasteful in what you post on these sites. Once posted, embarrassing photos and comments are on the internet forever.
Another way to promote your business is to enlist the help of those who already know you well. You have been building a professional network over your entire life, made up of the friends, classmates, coworkers, and church members that you already know. Tell everyone you know that you are in business, because these people can be your best source of referrals. Be sure to give them business cards and flyers about your services, so that when someone asks for a referral, your friends will have what they need to recommend you.
Family Planning
An often overlooked aspect of business planning is family planning. You should talk to your family about how the financial uncertainty of starting your business and discuss how the family will survive the startup phase. If you have young children, you should plan for how they will be cared for while you are working extra hours to build the business. You should also come up with a family business plan if you anticipate that family members will eventually participate in the business.
