What exactly do you need to start a business

[rocknroll333]

Having worked for companies that follow the "Good TO Great" (by Jim Collins) principles. The most important thing to do when you start is get the right people/mentors to work with you.

When I first started developing companies, it took me at least three months of planning before we even sold one product. Those companies went from Zero to 3Million in sales. After doing it for 5 years, it can take me 2 weeks to fully vet a new business.

If you want to be successful

1. Buy the books "Good to Great" and "Built to last" (there is a video on PBS that you can watch if you get US Public television)
2. Read them more than once
3. Find key people in your industry as mentors
4. Attend a trade show or get an internship (for an insiders view into your market)
5. Create your business plan
6.Start checking off milestones from your business plan

==========

How I used the some steps above

a) I attend the Magic tradeshow in las vegas each year where i meet with fashion insiders and authors of the textbooks used in fashion schools. The goal is to get data straight from the source. Why read about a trend on WGSN.com with a few thousand dollar registration fee when I can sit back and have WGSN employees tell me what the trends are in person..for free

b) I got an internship at a Major record label in october 2005. I produced an album in April 2006 for a VH1 event with my own record company. My time as an intern showed me not only what it takes to make records for artists but, WHAT NOT TO DO by observing the industry practices from the inside.

[Marketing Maven]

Congratulations on the first step of deciding to create your own business.

First, you have to ascertain if you are going to be selling your products or services to people or to businesses.

People purchase products and services for three basic reasons:

•To satisfy basic needs
•To solve problems
•To make themselves feel good.

You have to determine which of these three categories your product or service is the solution to. Businesses, unlike individuals, buy products and services for three reasons as well:

•To increase revenues
•To maintain the status quo
•To decrease expenses.

Knowing the reasons why people/businesses buy, you should have a picture emerging of who you think your "Target Market" (or ideal customer) is. Once you have zeroed in on your solution, you are ready to create your Marketing Strategy.

If you look at any company that has grown rapidly over the past few years, (i.e. WestJet and Starbucks), it should demonstrate to you the importance of Marketing. In simple terms these companies have:

•Clearly defined what makes them different;

•Who their ideal customer is;

•How to reach them;

•Why customers should buy from them;

•And most importantly why customers should come back again.

It is strong Marketing Awareness that singles out the best companies.

I can not stress enough how important it is to create a "living" Marketing Plan before you even start.

I hope this helps a little in the creation of your plan. All the very best of luck.

Remember: "A Goal without a Plan is just a Wish"

Miles of Smiles,
Marketing Maven

[pjcolbeck]

I think [b]magonaga [/b]identified one of the most important ingredients for starting a new business in its simplest terms...."[b]Sheer bloody tenacious determination[/b]".

The only thing that I would add to this is the need for a plan. There are many methodologies for planning, but I believe that the most effective is also the simplest.

[list=] Step back from the excitement and anxiety, close your eyes and visualize your goal
Identify all of the ingredients (e.g. office/store, legal paperwork, contracts, products) that you need to make your vision a reality
Identify all of the ingredients that you need to get the previous ingredients (equipment, training, partnerships, mentors, marketing materials)
Prioritize all of the ingredients
Sketch out a timeline for how all of these ingredients come together to achieve your goal
Execute the timeline...with a liberal dose of magonaga's advice
[/list]

When all is said and done in the realm of planning, take heed of Dwight D. Eisenhower's advice "Plans are nothing. Planning is everything". Even though your timeline may not go as planned, the fact that you devoted the time towards planning will help you understand the impacts of changes to your plan and react more effectively to unforeseen events.

May God bless you in your endeavors!

[Danie]

You've received wonderful advice from all of the responses to your question. Here's my take... research, research, and more research. You have to know enough about your business idea, who is interested in your product or service, where they are and how much they are willing to pay.

I spent six months researching my business before launching. I joined networking groups, found mentors, visited competitor's sites and asked lot's of questions. I'm still asking lot's of questions. Meanwhile, you should check the legalities for your business in your region. What types of licenses are required? Do you need any business insurance? What are your fixed costs? Do you need special equipment or supplies and where can you get them?

I need to echo some of the responses that a flashy business plan is not necessary, but you should have some type of plan you can refer to as your business grows. A business plan is really only for you... so you can make adjustments, change direction and create benchmarks for your future progress. That is, unless you are intending to seek outside funding. Then, you will need detailed financial plans and forecasts.

I hope this helps.

Best Wishes,
Danie

[thelimgroup]

sounds over simplified, but to me it has been very true.

starting a business should be more about starting a big life change towards something that you have unwaivering passion and desire to do.

the truth is you will never know all you need to know to start the business your a starting. the truth is there are many things that will test your resolve to starting your business. from simple things like making the time to do small tasks or making personal sacrifices like spending less time with your family.

i've also come to learn that starting a business is about sustainable persistence. ensure that you can continue to sustain your current responsibilities while taking small steps towards your business everyday. most often, i'd say don't quit your job. assuming you have bills to pay. sustain your ability to take care of those bills while taking those baby steps towards the business you desire.

in the end, nothing is overnight. it's more like being a farmer. planting seeds of thought, nurturing them, weathering storms, and working hard everyday with the risk that there may not be any fruit. here's where the passion and desire come in. because if you really are passionate and desire your business idea, you will have no problem re-planting those seeds and starting over again. here's where sustainable persistence comes in. if you disregard your responsibilities in pursuit of your dream business and it doesn't work out, you don't want to have to sell the farm.

selling the farm or being put in position where you need to put all your focus on just surviving puts you further away from your dream.

think long and hard about that passion/desire. make sure it is true and sincere with your own DNA. if it is true. you will succeed.

[csparks]

Your are recieving some really good advice on the mental aspect of starting a business. I work with clients on a more technical level when starting a business, structure, licensing, taxes, business plan, intital steps, etc. Don't get me wrong, all entrepreneurs need both, motivation and technical support. They work hand in hand.

My suggestion to you is to both mentally prepare yourself and began establishing goals. I use a method for business development, which has been very beneficial in the success of my clients, "PIE". Plan, Implement, and Execute (business plan). After identifying the processess which is needed to take, you must then follow through with the neccessary research to determine how to establish the business. Call your local City Clerks office to find out what you need to establish a business in your area. Find out what type of license will you need (if one is required), depending on the location of your business you may not need one. Additionally, what is the best structure for your business type, what are your tax requirments, how to establish business credit, what is required to obtain capital to start your business. These are the fundamental things you should know before starting a business.

[robertj]

To have a business - you need something to sell that somone will buy.

If you have an idea or way to solve a problem then you will need to:
-determine if it is feasable
- decide pon your approach
- identify the resources you will need
- gather the resources
- begin the journey

I realize this is an over simplification but my message is this -

Starting a business is like building a house in this regard- if you do things in the right sequence it will be easier and less costly.

I will add that starting and building a business can be hard work -so haning a passion for what you are doing plus a dedication to its success are pretty much essential.

And don't be afraid to seek help.

Robert Johnson

[Lisa Manyon]

Hello,

If you are interested in starting a business, certainly your idea is a good begining. However, you'll need to research and take it beyond the idea. Often small business development centers offer free business development research and advice.

A great way to kickstart your idea it so follow Jim Horan's One Page Business Plan formula. http://onepagebusinessplan.com/

I've also developed a POWER Planning Process that helps move your dreams into goals with specific action items. Keep an eye on my blog for the upcoming release of the eBook and POWER Planning Process audio package featuring me and Lorrie Morgan-Ferrero http://writeoncreative.com/blog/ When it's available, you'll find it in the Biz Builders to Increase Your Success section.

Plan on~

Lisa Manyon

[wartimethings]

Hi,

It's good to see the motivation alive and well across the world.

However, may I offer an insight about any business you wish to open. I notice your homeland is in Nigeria. I hope you don't take this the wrong way but with all of the scams currently coming out of that area of the world, you will be working twice as hard to establish yourself and build trust in your clients.

But don't let this deter you. Many people have faced obstacles much worse than this and have overcome them. Look around. Find the thing which you love to do or what you think you would love to do. Don't be afraid to experiment with one business and if that doesn't work for you or provide a fulfillment, pursue another. You've got to find the market which is right for you and feel good about.

Motivation is the key factor. You will experience highs and lows of business just like in life. The most important thing is to continue smiling and remember why you started the business. Believe me, you'll get all kinds of opinions, tips, and other advice for your business. Others just love expressing their views. Listen, use what you can, and discard all of the others.

Dan

[jcul806]

Thanks to Andrew for promoting new businesses and the excellent feedback provided. Having the support of family and friends is vital since you will be counting on these people for their support and feedback alot. Planning, researching your competition, getting great people on board to fill-out areas you may not be particularily knowledgable about (i.e. finances, legal, marketing, technical, etc.) is extremely important. As a start-up, the financial resources may be scarce and these personnel may have to be aquired on an as-needed basis, but it's important to establish and maintain these relationships. Some may be willing to invest their expertise in you with the understanding that their generosity will be returned in kind, don't let these people down. You and your company are only as good as your word. You will have frustrating and joyous days while trying to promote your idea/product, however, keep it in perspective and balance it all with your personal life. Attend chamber of commerce meetings to meet others and to promote your product and existence in the marketplace. Perfect your 'elevator pitch'. Attend related industry trade shows first as an attendee to get a feel of the competition and how your product can be used in horizontal as well as vertical markets. Investigate specific trade shows carefully and determine your return-on-investment before committing to participating as an exhibitor. Branding is vital since it will represent your company for a long time. As related earlier, make sure the company name your anticipating on using hasn't already been registered on the web and that the layout and colors can be reproduced accurately and relatively easily on different mediums such as business cards, letterhead stationary, graphic panels (for trade shows), etc. Best of luck, stay strong!
John

[virtualreceptionists]

Hello everyone!

I was invited by Andrew who works for Evan to share my information here about seeking business expert advice, tips, tools and training on the internet.

I understand that one of the members here is looking for information on how to start a business. So thats why I am here

No matter where you are in the world, the basic foundation of starting a business is almost the same regardless what business idea you have in mind.

I run a niche oriented podcast directory called Business Resources Podcast Directory at http://www.BusinessResourcesPodcastDirectory.com and the reason why I set it up is to attract experienced and aspiring entrepreneurs around the world to share vital information on how to start a business, market a business and then grow a business exponentially. These information are being shared in the form audio and videos as well as text in discussion boards and article blog that we have set up within the directory. All these are FREE for everyone to learn and then share the information.

I would suggest that you go to my directory and listen to topics of your interest. Everything in my directory is related to Business Resources only. Its very specific so that you don't have to wade through hundreds of podcasts to find exactly what you need.

I look forward to share my expertise in this forum board too as and when time permits me to do it

I run two businesses at this time but I always find time to give back to the entrepreneural community such as this one...

To your continued SUCCESS!

Cheers!
Rima McDonald

ps: send a blank email to strictlybiz@aweber.com to download SHOP FOR SUCCESS COUPON BOOK.

[jvprosperity]

virtualreceptionists,

Thank you for the contribution.

[pippak]

Hi Phummy

You might want to check out the wealth of free resources at http://www.startupnation.com - you'll get lots of great ideas and information about how to start a business.

Sincerely

Philippa

[EKErrands]

I too was invited by Andrew to join this forum and offer information...thank you Andrew! I am humbled by your invitation.

So much valuable information has already been given...

Starting up a business begins with an idea, the desire to pursue a dream and strife to make it a reality. Do research, look at the big picture, decide to work hard and if you can take the pressures and - if you truly believe in yourself and what you can do - take the leap. You have to be a go getter and a strong person because there are highs and lows, good times and bad and you have to be able to get through all of it.

Ultimately your business structure, how you nuture it, and the dedication you put forth is going to either make or break your business.

I worked in the legal field for over 23 years as a legal assistant and loved it. I have always been a people person and always enjoyed helping others and, although many might not agree, the legal profession is a form of helping others. Between co-workers, clients, friends and family I saw a very important need in the world - work-life balance. Statistics show that Americans now work longer and harder than any nation. The advancement of technology means that work is no longer confined to the office. Companies expect dedication, hard work, long hours, do what whatever is necessary in order to prove you are a worthy employee - no matter the cost. And if it means less time meeting the responsibilities at home and less time for family, fun and leisure then you do it. Between work and home - "too much to do and not enough time" is not just a broken record, its a reality!

Before taking the plunge, I researched - lots and lots of it for about 6-8 months. I did my own market research per se - talking to anyone and everyone who would listen asking what would they do with more time. When I got their responses I asked them if help was out there, would they use it. The response was "YES!" I voice inside of me said I had found my calling but it was a big leap to take. I prayed very hard and one day, I got my answer. After 18 years at the same law firm, I tendered my resignation to start my business EK Errands Express, a personal assistant, errand & concierge service.

Many who start their own business no matter what industry you go into don't take think it through totally. They don't take into consideration all the necessary steps and requirements to be a legitimate, strong and respected business. Its not easy and its not cheap to start your own business no matter what industry you go into.

In my particular industry, newbies tend to think all they need to do is pass out business cards, distribute some flyers and the clients will come in leaps and bounds. Well, it doesn't work that way and 2 months after distributing their materials if their phone isn't ringing off the hook, they are disappointed. The reality of it is they'll be lucky to get a phone call in the first 6 months of business. Just like any business its a lot of long hard work and exercising great patience. Its like you're sitting on an egg waiting to hatch! Its stressful - but knowing the stress is your own is a big difference. My industry is ground breaking breaking and growing rapidly. Although balance between work and home is an increasing need, hiring someone to help is still considered a luxury and not a necessity. But as time becomes less, and responsibilities increase, the future is necessity. You must be able to pay your bills until the business gets going to where you're making a salary. (Health insurance is a killer! )

Here are some basic necessities to starting just about any business:

Name your business
Business Logo
Business cards
Office Location (be it a storefront or home)
County/City Zoning (if choosing to run a home based business)
Obtain necessary City/County Business Licenses
Consult with an attorney
Determine the proper Legal Structure of your business
Consult with an Accountant
Select a Bank for your business account & open it
Insurance for your business
Insurance for your automobile
Determine if Bonding is necessary
Decide whether you will hire employees PT, FT or use independent contractors
Office Supplies
Business Telephone
Cell phone
Answering Machine/Service
Set Prices & pricing structures
Typewriter/Computer
Business Plan
Marketing Plan
Market Research
Domain name
Website development
Webhosting company
Find start up money for your business whether it be an investor or a loan
Have necessary contracts
Design brochures, flyers, ads - all the things that tell people about your business and the services you offer
Advertising (BOY this is not cheap either! )
Join networking groups & chambers and other groups to help get your business name out there
Distribute information everywhere
Hand out business cards
Educate your public, determine the need and show the benefits of your business

lol, majority of all the above has to be done BEFORE you even hit the streets! As I said, its not easy starting your own business but if you have the drive, determination, strong will to work it and can hold out until its a success its the most rewarding and wonderful thing in the world! Sooner or later that egg has got to hatch - right?

When you believe in yourself, your business, and that what you are doing is truly what you want and love to do, it will show and others will see it. You will develop a reputation of dependability, reliability, trustworthiness and the public will see it. Then and only then will your customers come. You will never know how far you can fly, until you spread your wings!

And, just like in the movie Field of Dreams - if you build it, they will come! You just have to be able to wait it out!

Hope this help!

Jackie
Owner/President
EK Errands Express
Shouldn't life be simple?[/i]

[j9media]

One of the first things I did as I started up was to take a few classes offered by the Small Business Administration. I'm not sure if Nigeria offers similar services, but people from the United States can tap into those resources pretty easily. The classes offered a business planning template, time to start your plan and great advice from other entrepreneurs.

Best of luck!