Checklist For Starting a Business the Right Way
File this one under, "Don't make the same mistakes I made.
" If one person learns something from my mistakes, it will have been worth writing this article.
Starting a business is just like building a house in a lot of ways.
You need to start with the right foundation.
If the foundation is shaky, problems will arise.
It might take years, but there will be problems just as surely as the sun will rise.
In fact, no matter what you do in business, you will encounter challenges.
Why make these obstacles worse by building on a shaky foundation? Here is a checklist that I wish I had followed before starting my business:
It cost me a lot of time and money.
So often we get caught up in the day-to-day tasks that we forget that our enterprise is actually a system.
Minding the health of the system is you job as an entrepreneur and boss.
Here is one more thing that you need to do: Ask yourself, "Do I really want to do this?" Make no mistake -- once you start a business, you are all-in.
Make sure that what you are doing is something that you can enjoy on some level.
If it is not something you can enjoy, ask yourself how long you will have to do it before handing the management off to someone else and basking in the profit of your work.
It's OK to start a dry cleaning business even when you hate doing laundry -- just make sure that you will not be doing that for the rest of your life.
If you figure you can make a million bucks in five years, it might be worth it.
That's your call and nobody else's.
May you prosper!
" If one person learns something from my mistakes, it will have been worth writing this article.
Starting a business is just like building a house in a lot of ways.
You need to start with the right foundation.
If the foundation is shaky, problems will arise.
It might take years, but there will be problems just as surely as the sun will rise.
In fact, no matter what you do in business, you will encounter challenges.
Why make these obstacles worse by building on a shaky foundation? Here is a checklist that I wish I had followed before starting my business:
- Define your core business, but do not let it limit you.
If you can't explain in one short sentence what need your business fills, you may be on the path to failure.
At the same time, take note of all possible fallback positions or ancillary products and services that you can offer. - Set up the right legal structure.
Corporation, S-corporation, LLC, LLP, sole proprietorship? Talk to an attorney and find out which is right for you. - Obtain financing.
No matter how frugal you may be or what field you are entering, you will need money to get started.
The best way to get money is to have a solid business plan and a little bit of savings that you are willing to commit.
Go to a bank or a venture capitalist with a good plan, and make sure you have enough cash to keep you going for at least six months, preferably a year.
Be sure to check your own credit rating and improve it if at all possible before asking anyone to fund you. - Set up a proper accounting system from the word "go.
" Quick Books might be good enough or it might not.
What do you plan on doing? The best bet is to set up some sort of web-based system so that you can enter your debits and credits from anywhere.
Keep every receipt.
When you hand this over to your accountant, you will be glad you took the time to do it right.
I wish I had.
It cost me a lot of time and money.
So often we get caught up in the day-to-day tasks that we forget that our enterprise is actually a system.
Minding the health of the system is you job as an entrepreneur and boss.
Here is one more thing that you need to do: Ask yourself, "Do I really want to do this?" Make no mistake -- once you start a business, you are all-in.
Make sure that what you are doing is something that you can enjoy on some level.
If it is not something you can enjoy, ask yourself how long you will have to do it before handing the management off to someone else and basking in the profit of your work.
It's OK to start a dry cleaning business even when you hate doing laundry -- just make sure that you will not be doing that for the rest of your life.
If you figure you can make a million bucks in five years, it might be worth it.
That's your call and nobody else's.
May you prosper!
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