5 Things We Should Clear Up Before Starting A Small Business

Starting a small business can be complex and diverse process, if we don’t clear up following cases, we can get wrong direction and failure.

1. We must clear up whether to start a new business alone or in partnership

This is one of the most important initial issues that should be resolved before proceeding with further thinking about starting own small business. Starting a new business alone and in partnership are totally different platforms for managing  of the processes, independent from business idea.

We are witnessing a large number of businesses with partnership, which after some time fail for the sole reason, and that is a different view and approach to the conduct of business by the partners.

While if we start own business alone, we can use outsource advices and lead the business from our view and approach and take the whole responsibility for our success or failure.

If we decide to start a business with the partnership, we must make sure to set clear lines of responsibility and obligations for each of the partners in the business, which is an extremely difficult process.

2. We must clear up how we will realize our idea

There are several options:

  • We can buy an existing small business
  • Start own small business from scratch with investing in our idea
  • We can buy a proven franchise

The first option is maybe the safest solution, but requires high initial investments. We can consider the safest solution in terms of ROI (Return of investment), if we make good analyze before buying, we can account for the first profit after a short time.

The second option is to invest in our idea and start own small business from scratch. The initial investments are much smaller and controlled by us, but the risk factors and time consumption for success are much higher.

Buying a proven franchise is maybe the easiest way to start own small business, taking into account the fact that they work for many people and there is a plenty of sizes and shapes. But this is not really personal business where we can show our true abilities and personality and most important thing is that the franchisor is will get the biggest part of the NET profit.

3. We must clear up with goals and realism in our business plan

Creating detailed and realistic business plan is base of starting a successful small business. Realistic means  “honest”, if we have done our SWOT analysis, we know what our strengths and weaknesses are, and we should follow them in our business plan.

Detailed means “Goals”, this process is very similar to “Personal Development Plan”. A business plan without ultimate goals is the same as “ship in the ocean without the ultimate goal, it can sail long as there is a resource, but will never reach the goal”.

Finally, we must put our plan on paper and to keep near us. If over time, we make some adjustments to the business plan, it means that our business operates, but if we make completely rearrangement, it means failure.

4. Take Risk – Take Action

After resolving fist three points, we must clear up with the moment “Take Action”. This moment is closely related to “Take Risk”, and it means “take action” when we are ready to take all possible risks coming out of our new business operation, even total failure.

Of course this doesn’t mean we have to wait indefinitely, on the contrary we should “Take action” in the first moment when we feel that we are ready to “Take Risk”. If we do not try, we will never know the results.

5. We must clear up with our persistence

There are tons of examples when people are giving up on their life idea just a couple of days, weeks or months, before somebody else take their business and get success. Everything is in our mindset, if we decide to be successful and strictly set up our mindset for success, we will be successful. Only need to be persistent, because there is not a problem for which there is no solution, we just need to find the right approach.