Starting a New Business

by: Joel McClish
SCORE MENTOR
​
How hard can it be?
When we start out creating a new business idea, we think about the ability of that creation to provide income and maybe some joy or satisfaction, we are energetic, motivated and have the “can do” attitude.

Before you go any further with planning a new business, you should ask yourself a few questions, these may include; “why do I want to start this business, do I know anything about the industry of this business?”, “do I think I will make lots of money in this business because someone makes it look easy?”, “have I ever worked in the industry of this business?”, “what time frame am I expecting to start this business”, “how much money do I have to start the business.”

Being positive is the best frame of mind and most difficult to maintain, especially when the reality of how difficult the task of creating new business with all the rules, regulations, logistics and negativity from our
closet’s family and friends. If you keep the positive energy you have when start the project, working through all aspects of your endeavor, positive and negative, will help you push through and no the outcome, you will know you made the best choice for you.

While the Business Plan is one of the most important ‘tools’ you can have, the most important is understanding the P&L (Profit and Loss) for EVERY aspect of your business. Know all of your costs including the cost of having you working the business, (keep track of all of your hours creating the business and assign a realistic hourly cost per hour, minimum wage, how much you would make if you were working for someone else or having someone you pay to do what you are doing).

Now that you figured all of the “little stuff” out, you can move forward, set you timeline, watch the trends, find your target market, straddle the line between a paying job, your new job (developing your business), while balancing your personal life with your work life all while keeping that positive can-do attitude!

If you decide that the business plan just looks too complicated, you should ask yourself some realistic questions, like; “who will buy my products”, “if someone else was selling my product”, “how many and how often can I sell my product or services”, “does my product have a shelf life?”, “how can I reach more people and how much will it cost?”

Where to go from here? Look at the business realistically, answer as many questions on a business plan template you can answer, project your sales and figure your costs and possible profitability.