How to Start a Business - What You Need to Know

So, you want to know how to start a business? Your own business

You need plenty of drive and determination if you want to succeed. While drive and determination are fairly broad ranging concepts, I'm talking about the ability to get out of bed in a morning, not have that second cup of coffee, and not "just browse the internet" before you start calling potential customers or cutting a deal with suppliers.

Evaluating your own personal character strengths and weaknesses as compared to a successful owner of a small business is a great idea. (Don't forget to be honest with yourself). What else?

Now, where did I put that..

We've all been to the small workshop where the owner can't find anything, didn't know you were coming (even though you phoned last week) and hasn't got your order ready. It's far from impressive.

Let's face it, being organized, following up on the details and managing projects is all down to you. Even if that means delegating. And while we're talking about tricky situations, how well do you handle tricky situations or deal with different personalities? (I mean difficult personalities, but diplomacy is needed)

As a potential business owner, you will need to get yourself technically up to speed and develop successful working relationships with any people you need to make your business work. Customers, suppliers, staff (hopefully some day), accountants, probably lawyers, and of course the bank manager.

Let me think it over

I struggle with this one myself. Sometimes there's just no substitute for straightforward - quick from the gut - decision making. As a small business owner you will often need to make rapid decisions under stressful conditions or tight deadlines without the ability to consult.

Ok, but what about when you've already been on your feet for 12 hours, your children kept you awake last night and the computer just crashed? Physical and emotional stamina is essential. This is because you can only live on the adrenaline and excitement of being an entrepreneur for so long. There is nothing more frustrating than wanting to keep going, but having nothing left in the tank.

All that for that?

You've dug deep, you've made the calls, got the goods, delivered the product, collected the money, paid the supplier, the accountant, the taxman, the rent, the, the, the...

There's nothing left. You've been a busy fool. Oh No. Better give up now. No not really. Resolve to learn from mistakes and make essential changes is critical. We've all heard research that shows poor planning is responsible for many failures, but not as many as running out of money. Cash is King for a reason. Without it you just can't go on.

Many different operational aspects of your business end their life either in or out of your bank account. Things like managing inventory (stock), delivery and production schedules and quality control all need to be managed through your financial statements. A tight fist of control and mastery of your business dynamics will have you ordering that new car soon enough!

Get your credits into the emotional piggy bank first

The first few years of business start­up is the hardest. It's important that you brief your family so they know what to expect, but it's as important to make sure you have their support during this time. You're not going to be as well off as you used to be until you make the business profitable and trade above break even. You're going to be short tempered, tired and crotchety at times and you're not always going to be home in time for dinner.

There are no guarantees that you will succeed, and there are many risks when you start out. Careful planning can eliminate many of these, but even the best plan in the world cannot take everything into account.

Now you know you've evaluated your own personal character strengths and weaknesses and know you've got what it takes, its time to work out exactly how to start a business

If you don't know what to put in a business plan, what sections it should contain, and how to put it together so it delivers the results you need, then sign up for our free business planning course now, and jump start your business plan today.

Neil Best is an accountant with more than 15 years experience working with business and finance. Make a profitable visit to Small Business Finance Tips right now.