Small businesses are the backbone of the economy, and they’re a major contributor to employment in America. In fact, between 1993 and 2011, small businesses created 11.8 million net new jobs.
How To Start a Small Business
If you want to start your own small business, you’ll need to know what you’re getting into. While you might be tempted to make decisions based on what others have done, it’s better to do your research first and make sure that you’re doing the best thing for you.
You’ll also need to understand the laws that govern your industry and your state. This will help you ensure that your business is operating within legal and ethical boundaries.
How to Determine Your Industry’s Size Standards
The Small Business Administration sets numerical definitions for every small business industry in the United States—based on their number of employees and average annual receipts. These definitions vary from industry to industry, but they’re generally a good place to start when trying to figure out what your company qualifies as.
How To Create a Small Business Plan
Once you’ve decided what your small business is going to be, it’s time to get down to work. This means developing a business plan for your company, which includes a high-level overview of your market positioning, financial projections and unique competitive advantages.
If you’re a new business, this step is particularly important if you expect to seek investors. Having a solid business plan in place will help you demonstrate that your idea is viable, as well as show potential investors how your business could benefit from their investment.
How to Price Your Products
Whether you’re selling your own goods or working with vendors, pricing your products correctly will help you attract customers. Pricing your products too low will cause shoppers to assume they’re inferior, while pricing them too high will scare them away.
When you’re starting a small business, it’s easy to get discouraged by the many challenges that come your way. But remember that you’re in this business to make money, and that it takes a lot of hard work and determination to keep your company going.
Be willing to fail
The great news is that most small business owners will fail at least once during their careers. This isn’t a sign that you’re doing something wrong, but rather that you’ll be learning a lot about what works and what doesn’t for your business.
Be open to mentorship
One of the most common mistakes that small business owners make is to not develop a support system, which can include mentoring from experienced business owners. These mentors can provide you with the advice, support and resources that you need to keep your business running successfully.
These tips will help you build a foundation for success and prepare you to overcome any obstacles that arise along the way. With a little effort and planning, you can be on your way to starting a successful small business!