| Nearly half of all small businesses fail within the first | | | | helps you make sure you're on course and reaching |
| two years of operation. The number one reason for | | | | the goals that you set for your business. |
| business failure is inadequate planning. The second | | | | The second step to business survival is getting enough |
| reason is under-capitalization. | | | | financing. Although the term "bootstrap entrepreneur" |
| So before you mortgage your house, or go into debt | | | | describes most small business owners, having enough |
| financing your business, you need to know if your | | | | capital to be able to keep your business afloat is vital |
| business is going to do more than survive -- you want | | | | to your survival. |
| to know if it's good enough to thrive! Here are three | | | | When you're creating your financial analysis of your |
| things successful businesses that have stayed in | | | | business, make sure you're being realistic about costs |
| business for five years or longer have in common: | | | | and expenditures, so that you give yourself the cushion |
| 1. The idea. A successful business start-up always | | | | you need to succeed. |
| starts with an idea. Something that makes your | | | | If finding financing is a problem, either because you |
| business stand out from all the rest. So how do you | | | | don't have enough credit or equity, or there are other |
| know if you've got a good idea? | | | | problems, take the time to look into the resources that |
| You've probably got a good idea if you can answer | | | | are available in your community. There are a wide |
| yes to any of the following questions: Does your idea | | | | variety of grants and loans (including microloans) for |
| provide the solution to a significant problem for your | | | | entrepreneurs, if you know where to look. |
| target market? Does it satisfy a need or want? Does | | | | Some great resources will be: |
| it create an opportunity? | | | | -The Small Business Administration |
| The most successful businesses either fix problems | | | | -Local Small Business Development Centers |
| (either real or perceived), or they increase your | | | | -Women's Organizations |
| customer's pleasure. They create a repeat need for a | | | | -Local University or Community College |
| product or service among the target market. | | | | -Chamber of Commerce |
| 2. The market. Your chances of survival are better if | | | | -SCORE (The Association for Retired Executives) |
| you can answer the following questions with a yes: Is | | | | -Nonprofit organizations that work on economic |
| there already a market for your product or service? | | | | development in your area |
| (It's much easier to fill a need than trying to create an | | | | Use other successful business models as a guide. |
| entirely new market.) Can your target market afford to | | | | When you're getting started, look around. What |
| buy your products or services? (If they can't afford it, it | | | | businesses are successful? Why? What is it they're |
| doesn't matter how great it is, you won't sell any!) Will | | | | doing that is working? What attributes do you admire, |
| your target market perceive your product or service | | | | and why? You stand a better chance of succeeding if |
| as valuable? (If they want it, but don't think it's worth | | | | you're modeling someone who is already successful. |
| what you're selling it for, you won't make any sales.) | | | | Find a mentor. Most entrepreneurs have great skills |
| 3. Your ability. Do you have the people, the resources | | | | and abilities, but no one does everything well. You |
| and the knowledge to be able to consistently provide | | | | probably already know what your strengths and |
| your products or services to your target market? Can | | | | weaknesses are. (If not, there are many resources |
| you maintain a competitive advantage? Do you have | | | | and tools that can help you figure it out!) Rather than |
| enough manpower? Can you purchase the supplies | | | | ignoring your weaknesses, find a mentor who can help |
| and materials you need over the long run? | | | | you either build your skills in your weaker areas, or |
| Your first step always is to create a solid business | | | | offer advice for getting what you need. |
| plan. Your business plan is more than an essay on | | | | If you take the time to plan to succeed, you could be |
| "Why I deserve to get funding for my idea" however. | | | | creating a legacy that will be enjoyed by future |
| Don't spend all the time creating a business plan and | | | | generations, and that other entrepreneurs will look at |
| then toss it in the bottom drawer of your desk. Your | | | | as a model for building their own businesses. |
| business plan should be a living, breathing roadmap that | | | | |