The Five Important Rules For Starting A Business | Financing Entrepreneurial Businesses | Innovation Forum

Post edited 6:55 am – September 9, 2010 by dawnawright

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Got New Biz Ideas? Starting a business, even a small, home-based business should follow five key business principles or rules, if it is to succeed.

The Small Business Administration (SBA) suggests five

business start-up rules. These rules apply to all business

ventures, regardless of size.

 

1. Find a need and fill it.  You can’t succeed in business without

solving a problem or filling a need that someone is willing to pay for. 

What's your niche market and your customer profile?

 

2. Develop a business plan.  This is a critical step required to get

funding for your business. What's your business model, how will

you reach potential customers?

 

3. Understand the numbers.  You need to understand the financial

costs and be able to interpret the financial performance of your

business.  Most importantly, you need to be able to generate a profit.

What are your start-up costs; number of unit sales to break-even;

how will you manage cash flow?

 

4. Provide an irresistible offer and  incredible customer service.

Happy buyers are your best form of advertising. How will you

nurture leads, convert leads to buyers, and retain customers?

 

5. Learn from others and keep learning as you grow your

skill set and mindset as a business owner. You can't start

and sustain a business alone. Establish a circle of advisers

and form a Success Team early in planning your business.

 

The  SBA website provides online training for new entrepreneurs.

Go look around – there is a lot of free information about

getting started, getting funded, getting business advice

from seasoned business owners. The website includes

a series of  informational podcasts of presentations on

a variety of business topics.

 

In the online training module called  Need a Job? Consider

Starting a Home-based  Business,  the slide  presentation

 reviews each of these 5 important rules. Take the time and

register  today to determine if you have the characteristics

of an entrepreneur.  Aassess how ready you are to take action

toward starting a business.

 

During the online training you will have access to readiness assessment

tools and templates to help you document  each step of your

business planning. Templates include: Business Plan, Start-up Costs

Sheet, Balance Sheet, Income Statement, Cash Flow Statement, and a

comparison of types of legal structures for business ownership.

 

Once you have completed the initial assessment and business plan, form a

support team and discuss you plans with your success team of business

mentors, coaches, and advisers.  Use the guidance you receive to

improve your plan, test concepts, form your business structure, raise

capital, and build strategic business alliances.  

 

The economic global recovery will occur by nurturing entrepreneurial

business development. One in five new businesses begin as a

home-based business.  By investing, building and growing the 

best ideas for small businesses, we all benefit from new products and

services that fulfill a need and provide new sources of revenue to

power the economic engine.  

 

The  SBA website lists several pages on business

planning, finding opportunities and contact information for

technical assistance, Community Express Loan applications, and

bidding on government contracts  in your state or region.  

You may be a diamond in the rough, but get out there and start

networking.  Let the business community know of your new

business idea. I encourage you new entrepreneurs to work with mentors

to refine your idea until you have a viable, profitable business

model. 

 

Got a great idea?  What's stopping you from starting today?

Take time  to read Weekend  Entrepreneur , written by Michelle Anton.

She describes the start-up stories of 101 successful homebusiness entrepreneurs. 

Weekend  Entrepreneur: 101 Great Ways to Earn Extra Cash