Today, I went to a small business seminar at a local elementary school. There were six individual classes open to those who signed up. I gravitated towards the Entrepreneurship and New Business Start Up class. The network connections were phenomenal! Certified Instructor, Janaire Croom was very detailed with her discussion on targeting a business idea, how to form a mission statement, and how to register information to the State of Ohio as a legitimate business.
She incorporated how being aware of the competition helps drive your idea and passion further. Make sure you are not duplicating services that are already out there. Keep your day job between 18 months to 3 years while working on the investment of your business plan or concept. For example; look at finding other legal ways to make money when a lay off occurs or if income gets too low.
A business plan is the bible or blue print to your business. I have been working on my business plan now for at least a month and haven’t even tackled the financial portion, yet. The plan is already at twenty-five pages. So, give yourself time. Realize the first arrangement is just a rough draft. Have someone review, critique and give you pointers on what is a good fit to your mission/purpose. Prepare yourself for negativity. Take that pessimism, analyze its content, keep what you need and throw away what you don’t.
Seminars, such as these are priority for those who wish to succeed further into a business, or just get their financial position in order. Did you know there are three credit reporting agencies? What may be reported to one credit entity may not be reported to the other. Do an annual check to make sure the report is accurate. Identity theft is really real. Know your rights to negotiate dispute resolutions with an agency or credit lender concerning items on your report between 7-10 years old. Have a relationship with your bank so when problems occur, your rapport with the lenders and bankers will shine through concerning your immediate circumstance. It is also wise to get a Certified Public Accountant so they can direct you in numerous financial areas.
What makes a lot of people afraid to start their own business is the up-front financial portion needed. Some banks are willing to match your start up business dollar for dollar. Yet, you will need some personal collateral. Looking at the economy it is necessary to learn how to make money from past experiences. These experiences can become motivators that could possibly turn ideas into a positive entrepreneurial journey.
I learned the critical differences between a sole proprietor, L.L.C, non-profit and corporation status. These are important to understand and review before deciding what you will do in your business. The information is located on your local Small Business Gateway or Secretary of State’s web-page. An attorney can help guide you to the best fit for your business. My family attorney gave me advice, free of charge and even directed me to the site to check name availability and helped me register the business.
Do not distribute business cards or promote website information if your business is not registered with your State office. Insurance is crucial, even if you are leasing or renting. Make sure you at least have liability coverage on your business so you will not get sued from your personal assets or so you can recover if something happens to your supplies.
An aggressive attitude will help balance a business. Are you dedicated, determined, ambitious, a go-getter that will actually get your idea accomplished? You are the sponsor to your idea. So, nurture it, build it, give it time to blossom to its fullest potential and then go after your heart’s desire. If it helps a community or your service is in demand, you’re onto something great!
Lending is not always the best road for all to take. If you can work your business as if you are on the time clock and receiving a wage is a sure way to actually save, invest in the company and use less resources that may eventually take up to 75% of your profit (McKeever, 2008). But, if your credit is “A” rated you will have people ready to lend. But, be very careful of the risk that your business may assume.
Resource Citation:
McKeever, Mike (2008). How to Write A Business Plan (9th ed.) Nolo, Berkley CA, pp.55
Delta Sigma Theta Sorority, Inc- Economic Development Committee
Sponsors: Anderson Interiors, Huntington Bank, Homes Saving and Loan Company,
J.E. Washington Funeral Services, Y.S.U. Financial Aid Counselor.
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