Every major company in the world was once a small business. Starting something and creating something essentially from nothing is considered a classic element of the American dream. Many have dreams up starting up their own business and being their own boss. However, some folks do not have the skills and/or organization it takes to handle the details which entail running a successful small business. Follow these steps and you’re sure to have a smooth startup and establish a strong foundation for your business to thrive upon.
Create a business plan– Do it yourself or meet with a professional to draw up a plan for your company’s next year and into the foreseeable future. Your small business may need to have a profit-loss forecast, a break-even analysis, and a cash- flow analysis.
Begin with as much of your own money as possible– Try your best not to take out loans and save up as much of the start-up capital as you possibly can before the grand opening. Start up costs can add up quickly and you can find yourself buried in fees if you have too much interest to worry about paying.
Determine how you will make a profit– Because making a profit is the purpose of any business, it should be one of your main priorities. Examine your business’ expenses (employee compensation, materials, rent, etc) and figure out how much capital you need to make in order to actually start making a profit.
Pay your bills on time– Although this may seem as a no-brainer, if you’re not 100% on top of the bills and taxes you need to pay, interest rates can add up rapidly before you realize it. The IRS is adamant about payroll taxes and may even threaten to remove your personal assets if you don’t remit your payroll taxes on time.
Create healthy employee relationships– While keeping the wellbeing of your employees to the highest regard, remember to hold them accountable for their responsibilities. It is they who make your company run and be sure that hold their work to the highest caliber and are loyal to your company.
Keep your edge– What differentiates you from other companies that are similar to yours and what can you do to keep this competitive edge? Whether it’s better customer service, a more convenient location, or better prices, find and hold on to what sets your small business apart and hold on to your trade secrets. This way, you can open with a “bang” and stay open with a loyal clientele.