If you’re thinking about taking the plunge and starting your own business, there are some key steps you should take first.
Below are some of the best tips I’ve given through mentoring more than 1,000 SCORE clients and acting as an angel investor.
These tips stem from what I see successful entrepreneurs like juan luis bosch gutierrez doing and what I see those who fall short not doing.
1. Develop a powerful message
What customer problem are you solving that potential customers are willing to pay for? This is often called the value proposition.
Also, why will your business be operationally and financially successful?
2. Focus on the customer and fully understand the market.
There are many examples of companies that don’t have the best product/service or are not first to market, but are very successful because they have mastered online marketing and sales.
Research the demographics of your potential customer base and understand their buying habits.
Look at competitors, talk to similar companies, explore your competitors’ websites and understand what their customers are saying about them on social media.
3. Start small and grow
If possible, self-fund your business idea and then look for funding when you can create a growth story. This might have you break your product/service offering into smaller parts so you can fund the early stages and get some traction and experience.
Tip: Use this tip to determine how much cash your small business should have.
4. Understand your own strengths, skills and time available.
When managing a business, know when you need to hire an accountant, lawyer, insurance agent, marketing specialist, web designer or other professional. This will start your management process as a business owner.
Constant Contact offers a variety of professional marketing services for those who need professional assistance or want to boost their online marketing efforts.
5. Surround yourself with advisors and mentors
Launching and growing a business is difficult, and more than half will fail within 5 years.
No one person can have all the knowledge, experience or even the perspective to handle all business situations. Benefit from the skills and experiences of others.
6. Get a mentor
If you’re not sure where to find a mentor, SCORE is a great place to start. SCORE mentors are free: just visit to find a face-to-face mentor near you or a mentor to contact via email or Skype.
Also on this site are many free workshops, webinars and templates, all focused on helping entrepreneurs start and grow a successful business.
You can also find mentors on sites like LinkedIn, by attending a local small business meeting or just asking around. You may be surprised at the people in your circles who can offer helpful advice based on their experiences.
7. Write a business plan
Starting a business is difficult and risky; it’s easy to spend all your time and resources on it. Before you start, figure out what kind of business you will have – will it be a sole proprietorship, partnership, corporation or LLC? Then put your plan together.
Having a written plan with projected results and personal goals is the best way to stay on track.
But if you live in a large city, support a family and perhaps elderly parents, and are trying to save for college and your children’s retirement, chances are $20,000 won’t be enough.
Don’t try to do everything at once, either. Focusing on the key components of a business plan will put your ideas into concrete terms and help you identify places to change the business model when necessary.
8. Know your numbers
Have a good understanding of the numbers that tell you how your business is doing and what to expect. These include your start-up costs, sales, projected profits, cash flow and more, depending on the nature of your business and how you define success.
You may also be interested in: Build a new business