Small Businesses are started up every day. Some originate through hobbies, others to fill a need of customers and others just to create a means to bring in more money. Choosing what kind of business will be started can be a difficult task. During times of economic downturn many recently laid-off employees will turn to self employment as an alternative to looking for a new job. Making a decision out of desperation, having put no thought to it previously, could be a recipe for disaster if not properly researched and investigated.
The Right Business Opportunity and Passion
Taking a survey of one's passions, previous experience and resources is a good way to start the new business forming process. Taking a piece of paper and making a column for each of these and then listing possible business ideas that fall under each category should reveal ideas that fall into more than one column.
As an example, if a person loves to work with wood (passion), has worked for a wooden sign company for 10 years (experience) and has a friend out of state who has his business making wooden puzzles and other products (resources) then a wood carving business of some kind would be his best choice. The process is much more difficult than this example and yet looking closely at the list helps potential new business owners to see which type of business may at least be listed in two.
Small Business Proposal Plan for Funding, Investors, Bank Loans and Goal Setting
Writing a business plan in a professional format is a great way to present a business idea to a bank for a potential loan or to a potential investor. However, when a small business is being financed by the owner's personal monies, the business plan may only need to be a few pages long with goals and a mission statement setting the standard for the company's future. The company's structure is typically explained in the plan as well (i.e. Corporation, Sole Proprietorship or Partnership).
A good business plan should include at least a three year snapshot of company goals, list the target audience of the business' product or service and calculate anticipated revenue and expenses. A basic business plan is too often written and then forgotten. Businesses who have shown early and sustained success treat their business plans as living documents. The plans are reviewed on a regular basis and daily tasks are often compared to the business direction laid out in the plans.
Franchise Business Model Opportunities:
Starting a business for the very first time can be a grueling and confusing process. Many new entrepreneurs will choose to open a franchise. Franchising has been around for many years and flourishes during economic downturns. One of the benefits of opening up a franchise is that a new business owner invests not only in a business but in a support and training system along with it. Companies offering franchises for sale are aware of this and have well developed training programs and share the successful ideas of other franchisees helping to avoid some of the pitfalls of business ownership.
Franchising is not for every new business owner either. Some do not like to be restricted to geographical areas or may not be pleased with every directive set forth as a requirement by the franchiser. Weighing out the pros and cons of franchising is an important part of making the decision to start a new business.
Source:
Is Passion for Your Business Enough?, Belmont University (Accessed 3-14-2010)
W Denis Nurmela - - Built multi-million $ companies from scratch - Church & Non-Profit Leader - Educated & Avid Reader - Coach, Consultant, ...
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