So to get started, create your own simple, one-page business plan that is a high-level overview of the small business you’re about to start.
- Define your vision. What will be the end result of your business?
- Define your mission. Different to a vision, your mission should explain the reason your company exists.
- Define your objectives. What are you going to do — what are your goals — that will lead to the accomplishment of your mission and your vision?
- Outline your basic strategies. How are you going to achieve the objectives you just bulleted?
- Write a simple action plan. Bullet out the smaller task-oriented actions required to achieve the stated objectives
That’s it. It might be longer than one page, but it will surely be more organized and shorter than a full business plan, which could take weeks to write. If you need more information on the one-page business plan, or want to write out a full-blown finance-centered business plan
Decide on a budget
While I highly recommend you keep your costs as low as possible, you’ll still need to determine a budget to get started and how much you’ll be able to spend. If you’re self funding, be realistic about numbers and whatever you anticipate your budget to be. I’ve found that an additional 20 percent tacked on for incidentals is a realistic overage amount that helps you plan your burn rate.
Your burn rate is how much cash you’re spending month over month. It’s an important number for you to figure out to determine how long you can stay in business before you need to turn a profit.
You should set up your business with profitability in mind the first 30 to 90 days. It’s possible. But have a budget reserve so you can survive if things go leaner than expected.
Decide on a legal entity
Filing paperwork to start a business costs money. Often, depending on your state, it can be a lot of money. You’ll need to account for city or municipality licensing, state incorporation or business entity fees and more. Do a thorough search ahead of time to determine what the filing fees are for your city, county and state before starting any business.
Often in the initial “test” phase for your small business, it can be wise to start as a sole proprietor, as it means less paperwork and up-front expenses. That can save you some big-time cash while you determine the viability of your business. Do be aware though that acting as a sole proprietor can put you at personal risk, so you’ll want to weigh the benefits vs. risks and then speak with a local attorney or tax professional to decide which is smarter for your short-term vs. long-term goals.
You can always file for a business entity once you’ve proven in the first three to six months of business that you’ve got a viable, sustainable model.
Take Care of the Finances
Whatever business entity you decide on, keep the funds separate from your personal accounts. This is a big mistake that makes tax time and financials so utterly and horribly confusing. It’s really easy to set up a free business checking account with your local credit union or bank. All you’ll need is your filing paperwork, sole proprietor licensing information and an initial deposit to get set up from most financial institutions.
Don’t pay for an account or get any kind of credit lines yet, just get a holding place you can keep your money separated from your personal accounts. This should take you no more than hour at the financial institution of your choice.
Get your online presence/Website:
Regardless of whether your business will be brick or mortar or online, you’ll need a website and that means securing a URL. Popular domain sites such as idotzdomains and Go Daddy will allow you to search for the website domain address of your choice and purchase it for as little as $.99 (be careful with GoDaddy though, they will jack the price up in subsequent years so be sure
If you’re starting an online business, you can tie your domain to an online shopping cart and store front such as Gypsy Spoonful or you can build a basic website yourself on top of your URL with do-it-yourself drag-and-drop site builders such as Weebly for a low fee.
You have enough of a foundation now that you can start testing some sales. Try to spread the word in inexpensive and creative ways.
If you have a service-based business, get involved with your local chamber of commerce or small-business chapter immediately and ask what resources are available for you to speak, present or share information about your business. If you have a product-based business, test the viability of your product at local flea markets, farmers markets or other community events to test what the public really thinks (and if they’ll purchase) from you. Start social media accounts and post photos of your products to see if the public is looking for the items you create.
Drive traffic to your shop/website through simple Facebook Ads with capped budgets, or set up a simple Google AdWords account with a budget cap to test if traffic is going to your site.
The admin team of Gypsy Spoonful is happy to help you learn how to drive traffic to your shop~ where else can you get hands on help from the owners of the company?