When starting a new business venture, there are many hidden costs and responsibilties to consider. A good business plan shouls always start with a mission statement or goal statement, which keeps ones main goals clearly in sight.
In his article below Van Theodorou guides us through the steps and hidden pitfalls one may encounter when starting a new business. Browse the links for additional business education reviews or visit CBN for other business related articles.
Tips for Starting a Small Business
By Van Theodorou
There are many things to consider when thinking about starting a small business that some items can be easily overlooked until it is too late. One good way to begin the process is to review the successful business plan for a similar business. Choose a business in the same arena as the one you plan to open as well as one that is similar in size.
Reviewing the business plan can tell you a lot and can be a real eye-opening experience. It will show you items you may not have thought about before. A good business plan starts with a mission statement or goal statement. This is the main theme of the business and should never be out of sight.
The next thing to examine is the financial statement. This should show a budget that takes every possibility into consideration. When you are ready to start writing your own business plan you may want to enlist the professional help of a writer and a financial planner or accountant. The business plan should include specific details that are important for possible investors and loan officers.
Keep these expenses in mind when working on the budget:
· Rent
· Insurance
· License Fees
· Marketing budget
· Internet fees - upkeep of web site
· Employee wages
· Telephone expenses (telephone system and T1 long distance line)
· Computers and modems
· Electricity/ Gas / Water (Utilities)
· Repair expenses
· Service contracts
· Materials costs
· Machinery
· Cleaning company fees
· Copy machine
· Coffee machine
· Fax Machine
· Office supplies
· Office furniture
· Remodeling expenses
· Fixtures
· Locks
· Signage
· Business cards
· Waste removal
· Cleaning supplies
· Alarm costs
· Storefront costs
· Cash register
· Merchandising supplies
· Training costs
· Employee time clock
· Accountant
· Postage and packing supplies
Aside from all the expenses listed there may be additional expenses associated with your specific business. Always allow for some additional money to be set aside for unforeseen expenses.
Once you have a business plan you can begin to set up your business. Make adjustments to the plan as necessary. Before you hire employees setup some human resource data including job descriptions and compensation plans. If your business requires technical personnel you may want to enlist the services of a staffing professional who will be able to review applications.
With a staff on board you can organize the office. Make sure that the office is set up for optimal efficiency. Put some basic housekeeping rules into effect so that the office stays clean and hire a professional cleaning service.
Good communication is key to keeping your business running smoothly. Even a small office needs official communication occasionally. Get into the habit early of using either email or newsletter format to convey important information. Always handle employee problems with discretion and compassion.
Learn to delegate tasks to others in the organization. This is critical if you want the business to succeed. Allow others input into some of the decision making process where appropriate so that they take ownership for the company.
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By Van Theodorou
