101: Thinking About Starting a Business? What You Need to Do Now. [Podcast]

Are you thinking about starting a business? Over 3000 new businesses are started each day in the United States alone. But, most new owners are not prepared for what they are getting into and have failed to prepare – which is the reason many will fail. I am not talking big issues or big strategies to get started – but some common sense things each person who is looking to start a business needs to do to improve their chances of success and increase their enjoyment when they become the boss.

“Creative Commons” by Luis Llerena is licensed under CC BY 2.0[/featured-image]

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What to Do Before Starting a Business

1. Know your goals

Why are you starting a business? Is it to control the money, more time with the family, to make your fortune, or just because it is a lifelong dream? Knowing your WHY will prevent you from starting a business you learn to hate. For instance, if you are wanting to be with the family more and love to cook for the family, you might think owning a restaurant is in order. The result will have you working long hours to the point you forget you have a family. There are other options in food services – but keeping your why in check will prevent you from killing your why.

“Knowing your WHY will prevent you from starting a business you learn to hate. #entrepreneurship”]

2. Kill the debt

Debt kills business ventures. Get out of debt before you start, and certainly NEVER go into debt to start a business. You could, however, start a side business to generate cash to help you get out of debt. Just remain hyper-focused on the goal of being debt free before you grow or quit the day job.

“Debt kills business ventures. Get out of debt before you start, and certainly NEVER go into debt to start a business.”]

3. Gather cash

Starting a business, even on the side, will take some money as well as plenty of time. The average cost of a startup in the United States is $7000. But the bigger issue is you will not have a steady income for the first few months. So prepare by saving up 6 to 12 months of personal AND business expenses before you start. If you are starting a side business, you can use the income from the business to build up this cash fund. Being debt free and having cash on hand gives your new venture (or old venture) room to breathe.

“Prepare for your startup by saving 6 to 12 months of expenses before you start. #entrepreneurship”]

4. Get your ego in check

Many who work the corporate world have nice and powerful sounding titles such as director or vice president. If you have an awesome title, you might feel important and powerful – like you really know what you are doing. But, in the corporate world, titles are an easy reward. Very often, your title has little to do with ability, intelligence, or control. And more importantly, the skills of getting along in the corporate world are not all you need to make it in business alone.

But now you get to name your own title –  such as president or CEO. If you have an ego you will really feel important now. But, no one cares. You are the chief grunt and everyone knows it. Stop trying to be Mr. Big Pants and get down to reality. Egos cause mistakes. Remember, pride goes before the fall.

Starting a Business – the Next Steps

Sure – there is more to do than the simple steps above. But, these steps can get you ready and put you mentally and strategically in a winning position. Check out some of these posts for more information:

• Finding Your Why
• Be Careful of Your Friends
• How to Find a Good Business Idea
• The Non-Profit Trap