2006-12-06 09:09:52 · 15 answers · asked by yanswers 2 in Business & Finance ➔ Small Business
1. Make sure you have a business plan and a budget for at least 12 months (a budget BTW is an "economic planning" of your business, showing you revenue, costs, taxes, salaries, profits etc).
2. Make sure you have customers that are willing to pay for whatever you are selling AND make sure the customers are wiling to pay a price that will make long-term survival of the company possible.
3. Hire only "good" people. It has been said: "It is better to have an A team with B ideas, than a B team with A ideas." Hire only people who are prepared to work hard and at least occasionally many hours, people that are as committed to your company as you are. One trick may be to let them own part of your company (a few percent of the shares or possibly options, but shares are better). This will make them motivated enough. Hiring good people is hard. Take help from friends, family, others and if you can afford it external consultants when hiring. Getting the wrong person into your company may be disastrous. Of course it is possible to fire somone who doesn't meet the standards, but before you get there this person may have caused of lot of harm.
2006-12-09 23:37:24 · answer #1 · answered by BOHR 1 · 0⤊ 0⤋
Whether you're a gardener or a brain surgeon you need customers. That's number one. Go into something you know about. Remember this as well, most small businesses fail within five years. Those that stay are mainly sole practitioners of a profession or skilled trade. Of the remainer, many of the owners don't make big bucks. They just prefer self employment.
And others are part-time businesses. Granted, owning a business is the way to great prosperity. But it's very, very hard.
I'm not saying don't do it. I'm saying know the reality before you do it. You owe it to yourself to try if it's what you want.
2006-12-06 09:27:41 · answer #2 · answered by Big R 6 · 0⤊ 0⤋
No one has got the most important ones yet:
1. PAY YOURSELF FIRST. Period. Take a check every week, even if it's a small one at first. You can always give yourself a raise when you have the cash flow and savings to do so.
2. PROTECT YOUR ASSETS BY INCORPORATING.
Don't screw around with this. Remember, no one "Plans to Fail", they "Fail to Plan".
3. BUILD A PILE OF CASH. Every spare dime you don't need for immediate operations, sock away in a money market fund. Don't succumb to the temptation to run out and get a new truck, or new tools, or whatever unless you can ABSOLUTELY justify a NEED for them. NOT just a "Want". Stockpile cash like a deranged squirrel. You will know when it's OK to spend some of it on yourself- your accountant will tell you!
4. DON'T BORROW FROM THE GOVERNMENT. This means make your tax deposits on time, everytime. DO NOT ever succumb to the temptation to put off making the deposit when due, not even for a couple of days. If you don't have the money when it's due, you are NOT budgeting correctly, or you are Out Of Business already and just don't even know it.
2006-12-10 12:53:27 · answer #3 · answered by gfunk 2 · 0⤊ 0⤋
Hire for attitude, train for skills. You want people on your team with good work habits, a positive attitude, and an ability to get along with others. You can teach a smart and willing person a particular skill, it's much more challenging to instill the right attitude in the wrong person.
2006-12-06 09:21:27 · answer #4 · answered by CA DIVA 4 · 0⤊ 0⤋
Customer is King. Know your customer very well before going into any bizness. Satisfying their needs is the very basis for going into bizness in the first instance.
It is the Golden Rule no1.
2006-12-10 21:56:34 · answer #5 · answered by malikng 2 · 0⤊ 0⤋
Know as much accounting as you can. Don't think your saving money by not hiring a bookkeeper, CPA, or a tax specialist. In the long run you will know where the money in your budget is off and you can correct the problem immediately.
2006-12-06 18:45:58 · answer #6 · answered by Anonymous · 0⤊ 0⤋
You must create useful connections, have lot of motivation and keep your own accounting, be willing to work hard in order to meet your customers expectations in a fast but qualitative way.
2006-12-11 01:25:15 · answer #7 · answered by zigozago 1 · 0⤊ 0⤋
Be your own accountant. From experience, leaving someone to do your taxes for you or keeping the treasury can be very risky. Trust yourself with those kinds of issues or have it done professionally.
2006-12-06 09:27:12 · answer #8 · answered by Anonymous · 0⤊ 0⤋
the foremost golden rule is to have adequate knowledge of what you are going to do and after that belive in yourself and go ahead.god is with you
2006-12-08 02:43:07 · answer #9 · answered by anil k 1 · 0⤊ 0⤋
Don't think BIG or Small; think appropriate.
Do a reality check.
Avoid unnecessary analysis, which will result in paralysis - you won't be able to make decisions or even get started.
Consult me.
2006-12-07 19:25:05 · answer #10 · answered by Ashok Gidwani 1 · 0⤊ 0⤋