Do Your Homework

Okay, you’re sure you want to start a business. Your first step, in my opinion, is to do some research. Even if you know what business you want to start, what do you know about the business of business? Sure you can just open shop and go. But then you could be spending more of your time playing “fireman” – responding to emergencies. That can be more expensive, in money and emotion, than the cost of a little planning. During the first couple of years of my business, I read a lot of business books. Not just books on running a business but marketing too. I used the internet and early blogs to get ideas and find resources. Below are some of my suggestions.

The best resource for any new business owner is the Small Business Administration (SBA). Their website is a usable entry into a wealth of info for people thinking about starting their business to established business needing specialized information. The SBA also has area offices. They also provide funding to two programs that directly aid small businesses. The first is SCORE the second is the Small Business Development Centers (SBDC). Score provides mentors along with business info and help to small business owners. The mentor is a local business person (retired or active) who can provide guidance and resources to a business owner. The SBDC are info centers where a business owner can find a business counselor, low cost (or free) classes and training. I used the KS SBDC in Wichita when I started. After a basic class, I was assigned a counselor, Joann, who walked me through getting started. She helped me fine tune my business plan so that I could get a business loan. I learned how to write the business plan through one of their classes. (To find a SBDC close to you, use the zip code resource locator on the SBA website.)

I’ll get to the Internal Revenue Service more in another post, but they have a lot of info for small business owners on their website and through some materials they still publish. What is no longer published is available on You Tube or their website.

The business section of any bookstore will have plenty of books to choose from but I have a few suggestions. These are the books I use and have kept in my office library. They are the ones I suggest to friends (in no particular order).

• The E-Myth Revisited  by Michael E. Gerber is a great primer on thinking like a business owner.
• Drive a Modest Car by Ralph Warner is a NOLA book that focuses on making your business a long term success. I especially like the chapter on starting on a shoestring.
• Paul and Sarah Edward have written extensively on starting and running small businesses and have a wide variety of books to choose from. They specialize on home based business and write for “Entrepreneur” magazine.
• The Girl’s Guide to Starting Your Own Business by Caitlin Freidman and Kimberly Yorio.
• The Art of the Start by Guy Kawasaki.

While you’re in the bookstore, you might want to check the magazine rack. There are a lots of business choices but the only one I read when I was starting was “Entrepreneur.” But I would suggest focusing on the articles and remember that most of what the ads are trying to sell, you really don’t need.

The suggestions I’ve made have focused on starting general business start up but there are resources for most types of business and specific business issues too. You just have to look. But be careful and always taking into consideration the writer’s motivation. What are they selling? Do they have a personal issue they are venting about? You can still get good info if you can be objective about the source.

If you are serious about starting a business, you need to know about more than the product or service you want to sell. You need to understand the business of being in business. That is how these resources will help you if you use them.



Comments

[Brian O'Connell]

I'm curious about the negative impacts of having a business that doesn't really make any money. Besides the obvious, that is. For example, a photography company that runs out of the person's house. If the person doesn't make many or any sales for the year are there any tax implications they could get slammed with that would make the person want to say "nevermind... I don't want to be an official company anymore?"

[Carla Santiago]

Wow, thank you for this. My daughter wants to open her own business for the longest time and I just sent her the link to this article. Thanks!

[Daryl]

I've read both Gerber and Kawasaki's books and second the recommendation, especially on The Art of the Start.