How would I go about starting a small business?

Question

I'm only in high school, but I had figured this was an opputunity I couldn't pass down. This was a chance of a life time. I want to open a special type of arcade and I don't know how to go about opening the business, like getting the small business loan or getting the credit or just where I should start?

Answer 1

At this point you probably will be unable to start your own business like others have said because you are a minor...but don't let that stop you from learning how! It takes people months/years to save up money and prepare to get a business started and now (in highschool) is the perfect time to start.

When you get older you will be busy with family, work, etc and your dreams of starting a business may fall by the wayside because as they say...life happens.

But if you start leaning now and start saving now you can be on your way so that when the time is right you can take advantage of the opportunities in front of you (by the way...there will be multiple opportunites in your lifetime that your "won't be able to pass down")

There are pleanty of resources online and offline to help you start your own business and write a business plan.

Online:

SBA Articles About Business Planning

http://www.sba.gov/smallbusinessplanner/plan/writeabusinessplan/index.html

Free Online Business Plan Program and Start-Up Articles

http://www.diybizplan.com

They also have an overview of the process of starting a busienss and articles on the registration process with links to additional resources here:

Starting a Business Overview
http://www.diybizplan.com/default.php?act=11&catid=74&id=83

Business Registration Overview
http://www.diybizplan.com/default.php?act=11&catid=74&id=68

Business Legal Structure - Single Owner
http://www.diybizplan.com/default.php?act=11&catid=74&id=69

Financing Your Buisness
http://www.diybizplan.com/default.php?act=3&catid=75

More articles on Starting a Business

http://www.startupbiz.com

Offine:

Check with your local

SCORE Office - voluneteers who mentor entrepreneurs

http://www.score.org

SBDC Office - Help with Business Planning, Financial Projections and Identifying Loan / Financing Resources

http://www.sba.gov/sbdc/sbdcnear.html

I hope this helps

dwadholm

Answer 2

There are books written on the subject of opening a business, but the basics come down to:
1) Develop a business plan outlining what the business is all about, how you will manage it (especially if you are in school), how many people you will need to hire, where it will be located, what the competition is, how you will market the business, why it will succeed, etc.
2) Prepare a pro forma statement, that is an estimated financial statement of where you will be after your first year of operation. This will show your revenue and expenses ,as best you can estimate them. Have someone with accounting expertise help you with this.
3) Prepare a cash flow statement, that is an estimate of how you will survive month to month, showing detailed expenses and revenues once again for each month.

Preparing these documents will make you think very hard about your business, and get you ready to meet with a bank or other financier. You will likely have to put up equity of your own (I hope your parents are willing to back you!). Banks don't like to feel that you are passing all the risk on to them.

Just one more suggestion. If you have a local Chamber of Commerce, ask them if they have a program where an experienced businessman would be willing to step you through all these hurdles, and get you on your way. Good luck!

Answer 3

You're going to find it very difficult to raise capital as a minor without your parent's sponsorship so get them on board with your dreams. If you can create a solid business plan to show them in black and white how much money you need and what you will use it for, how long until a break even point, and profit potential they can assist you with finding resources. It's a good goal so don't give up but tweak it until you've found a solid formula for success. Your local library can put you on track with books that will show you what's needed from you. Start there!!!

Answer 4

Before starting business, I always recommend doing market research. Find out what sort of goods or services you want to sell. Find out what sort of market you would have for it. Find out if that market is already "saturated" or not. If the market is large and growing, find out which other businesses have a high percentage of market share.

Once you learn about your prospective competitors, find out how you can curve out a niche for yourself in the market. Find out if people who be willing to buy your niche goods or services. Once you get good results from your market research then, think about the business structure you want and get it set up with the help of a lawyer or an experienced accountant.

As far a finances or start up capital goes, have no worries. Money always follows good management/business. However, you'll have to have financial forecasts such as cashflow forecast, income statement forecast, and forecast for statement of financial position. However, the most important will be the cashflow forecast. Any lender, angel investor or potential business partner contributing money will be most interested in your cashflow forecast.

If your financial forecasts look convincing and realistic, you'll be able to get start up capital. Also, majority of people funding your start up will want to know how well conversant and experienced you are with the sort of business you want to start.

In your case, I'm guessing that you're a minor, so legally you can't get loans under name. You;ll have to get your guardians/parents to co-sign or apply for the loans of the business you want to start.

Answer 5

I have a friend doing this right now. She has a house and was able to take out a loan, maybe someone could sign for you if you dont have enough credit. She has also consulted a lawyer for her tax ID number. Theres alot involved and you should find someone who is experianced in that area to help. Good luck!

Answer 6

Starting a business is very competitive against all the other businesses and the ones that have been going on for years. You have to consider the various new niches, old niches, changing social patterns, new information about things, science, human needs, etc etc... however, this keypoints-dictionary will give you some ideas around initial business start up with some key points.

http://keypoints-dictionary.com/starting-a-new-business-key-points-key-words-key-phrases-on-the-go/

Answer 7

You need a place and the finances to get whatever equipment it will take. The SBA will help, but usually only people that have experience in what they want to get into.
Beginning capital, where ever you can get that is critical!

Answer 8

thats exactly wat i want to do...but i dont know...