Seven Steps to Starting Your Own Business

People are always asking for a list of fundamentals, a checklist they can use to start

their own businesses. From your business type to your business model to your physical location,

there are so many variables it's not easy to come up with a list that will work for everybody. The key, regardless of what type of business you're

starting, is to be flexible!

Step 1: Personal

EvaluationBegin by taking stock of yourself and your

situation. Why do you want to start a business? Is it money, freedom, creativity, or some other reason? What skills do you have? What industries do you know about? Would you want to provide a service or a product?

What do you like to do? How much capital do you have to risk? Will it be a full-time or a part-time venture? Your answers to these

types of questions will help you narrow your focus.

Step 2: Analyze the industry

Once you decide on a business that fits

your goals and lifestyle, you need to evaluate your

idea. Who will buy your product or

service? Who would be your

competitors? You also need to figure out at this stage how much money

you will need to get started.

Step 3: Make it legal

There are several ways to form your business – it could be a sole proprietorship, a partnership, or a corporation. Although incorporating can be

expensive, it is well worth the money. A corporation becomes a separate entity that is

legally responsible for the business. If something goes wrong, you cannot be held

personally liable.You also need to get the proper business licenses and permits. Depending upon the

business, there may be city, county, or state regulations as well as permits and licenses to

deal with.

Step 4: Draft a Business Plan.

If you will be seeking outside financing, a business plan is a necessity. But even if you are going to finance the venture yourself, a business plan will help you figure out how much money you will need to get started, what needs to get done when, and where

you are headed.

Step 5: Get financed

Depending on the size of your venture, you may need to seek financing from an “angel” or from a venture capital

firm. Most small businesses begin with private financing from credit cards,

personal loans, help from the family, etc.

Step 6: Set up shop.

Find a location. Negotiate leases. Buy inventory. Get the phones

installed. Have stationery printed. Hire staff. Set your prices. Throw a

"Grand Opening" party.

Step 7: Trial and errorIt will take awhile to figure out what

works and what does not. Follow your business plan, but be open and

creative. Advertise! Don't be afraid to make a mistake.

Thank You

Mihran Kalaydjian, CHAConsultant, Strategist, and Writer

@Mkalaydjian