Tips for Starting a New Business

If you're starting a business, steer clear of these problems:

Starting your own business may be a dream that you’ve had for years, or it may be a relatively new idea. Either way, you can improve your chances for success by avoiding these common pitfalls.

• Lack of money. You’ll probably need capital to start your business, plus a cash reserve until your business becomes self-sufficient. Plan your cash needs carefully and realistically, and provide a generous cushion for setbacks and unexpected expenses. Consider leasing equipment instead of buying. If you must buy, look into used equipment. If your business is going to need a start-up bank loan or other financing, obtain the money before you make any major commitments.

• People problems. Make sure that you’ll be able to hire and pay for the employees you need, especially if your business requires specialized skills. And since you’re the most important employee of all, try to evaluate yourself honestly and objectively. Do you have both the financial and marketing skills that your business will need, or do you plan to hire someone who does? If you’re used to working for a large company, or if you like having colleagues around, will you be able to adapt to a smaller office?

• Professional advice. While we’re on the subject of people, be sure to line up qualified accounting and legal advisors, as well as any other experts you may need. Good advisors can mean the difference between success and failure, especially in the early days of your business.

• Insufficient planning. Research your industry and your competition in depth, and prepare a written business plan covering several years. Write a short mission statement for your company, identify your target market, and try to focus on both as closely as possible.

Building a successful business requires more than a good product or service. If we can assist you in getting off to a good start, please call us.

Related Information:
        Consulting Services
        Every Business Needs a Written Plan
        Setup new corporations
        Setup payroll and payroll taxes
        Small Business Services
        Sources of Business Financing
        The New Business & Professional Advisors

© Copyright 2001 Raymond S. Kulzick. All rights reserved. 011230.

This publication provides business, financial planning, and/or tax information to our clients. All material is for general information only and should not be acted upon without seeking appropriate professional assistance. Read Disclaimer.