How to Start a Business: Basics for the Aspiring Entrepreneur

As an entrepreneur, I can say with some authority that there is a LOT to know before jumping into the world of self-employment/business ownership. However, this is a good thing.

Being prepared, and doing this advance planning and research helps prevent costly mistakes, and increases your chances for success. Most businesses fail within the first year of startup. If you want to avoid being another of those statistics, take some time to get all your facts and figures in order.

A few basic things to do before starting a business:

1-Write a business plan. It doesn't have to be extensive or lengthy, but going through the process of completing one will help you to think of things you had not, and will set you up to be largely prepared should you need to apply for financial aid (loans or grants). The things you need to know to complete a business plan are also the things you need to know in order to obtain financing.

2-Licensing and Laws. It cannot be stressed enough that you must check all local, state, and federal licensing and tax laws which apply to you and your particular business venture. Be sure to strictly adhere to them all or be prepared to face hefty fines and penalties. Ignorance of the law is not an excuse they will look mercifully upon or will accept.

3-Know your market. Knowing who your particular market is will help you determine how to advertise, and what your odds for success are. The market may already be flooded with a similar product or service. What will you do to make your business stand out from the rest and be more desirable to your customers or client-base? Be prepared to refine your plan or come up with a new one should this be the case.

4-Resume, Cover Letter, Credentials. Update your resume and credentials. Learn how to write a killer resume and cover letter. You will need these as part of your business plan, and for any application for financing. Also, if you are providing a service, you may need these in order to obtain clients.