Seven out of ten new employer firms last at least two years, and about half survive five years. More specifically, according to new Census data, 69 percent of new employer establishments born to new firms in 2000 survived at least two years, and 51 percent survived five or more years.
Looking at the above statistics the probability of your business being a success or a failure in say 5 years from now is pretty much 50/50!
You have that special big idea and are all set to start your own businees, but looking at the above stats and depending on where you want to see yourself in 5 years, it is time to get set and know these essential tips before you launch your business.
Emphasis on knowledge is a very important step towards building any skill set or starting a business. What you are about to do has been done over and over again somewhere sometime (in all likelihood, of course your ideas may be new or truly path breaking but some inspiration can be derived from other’s previous experiences). And where do you get this knowledge and inspiration?
- Read relevant magazines for example: Entrepreneur, Inc. and if you want something readymade then there are solutions around, for example the Entrepreneur magazine’s Startup Guides give you all the information you need to start your dream business (see link: http://www.smallbizbooks.com/ )
- Read the newspapers and information on websites like SBA.gov which assist you with detailed information from putting your plan on paper to legal assistance to your local retargets. Look up this FAQ page which might answer many questions you have right now http://www.sba.gov/ADVO/stats/sbfaq.txt
- SCORE (in the US) is “the counselor to American Small Business”, the website (http://score.org/ ) provides very detailed how-to guides and business tools to guide you through the planning and execution process of your dream venture. A very cool page is that of Retargets for Young Entrepreneurs. And if you want a personal touch there are various SCORE centers around the nation which provide free and confidential small business mentoring.
2. Business Plan and Goals
Before you even dream about having an empire or making that first million in whatever time frame you have set – make sure that your plans and time frame for execution are practical and doable. A solid planning is the key to success in whatever you do. Must read article on Inc. columns: How to Structure a Business Plan. This article goes through a step by step process in helping you develop the business plan that can be the foundation for your success.While preparing your business plan make sure that you focus separately on your short-term and long-term goals. When on the way to achieving your short-term goals never lose sight of the long-term ones. The short –term goals must strengthen your vision of success and achievement of your dream venture.
3. Legal Awareness
There is this one very good info article on Entrepreneur.com which talks about the legal tips as an outline, good way to start here – gain knowledge on what is being discussed here and then delve deeper into whatever topic is most relevant to your business type. Read the tips at SCORE’s Top Legal Tips. (The legal matters and taxes are different in different countries, if you are not in the US or starting a business worldwide, ensure that you spend some time gaining knowledge on your particular country (or the country where you are planning to start your business); it is also strongly advised to seek an attorney in your country of business to understand and deal with any legal matters that might crop up now or later.
4. Financial Planning
Financial awareness and planning is a very essential skill to master if you want to be a survivor in the tough business sector. You may have a great idea, valuable skills and a team to execute your plans to action, but without a sound financial backing and a plan to sustain in the long-term your venture might not see the light of the day. Some very good tips on this topic are here (please take time to read and apply to your situation):
5. Work Hard
There may be many alluring stories around of how people are making hundred and thousands of dollars by “working on two hours a day” or the easy money without “any work”. Remember that there is no shortcut to success. Be prepared to work long hours and also work hard to reach the benchmarks you set for yourself along the way. Breaking down large tasks into small steps can be the ideal way to celebrate your “first achievement” or reaching that first benchmark that seems like an unreachable rugged mountain. Don’t take short cut to success – your careful planning and hard work will reap long-lasting results. A lot has been said about it but still it features in the first 5 steps you must know about when launching your business.
Some other articles and retargets you must read:
The Basics of Starting a Home-Based Business