Small business advice... Please help?

Question

I would like to start a small business, but I have no idea where to begin. I am interested in opening a bakery or a flower shop that would family owned and operated. About how much money will I need for start-up? What is the best book that you have read that helped you immensely with starting your own business? Any advice would be greatly appreciated! Thanks...

Answer 1

Associations may be a good avenue to explore. These organizations will address many of the thoughts, questions and concerns you'll inevitably have as well as many you haven't anticipated yet. See the source box for some relevant links.

Research, research, research – this cannot be stressed enough. Read as much as you can about the industry. Here are some book titles that are relevant:
* Starting A Flower And Gift Shop by Millicent Gray Lownes-Jackson
* Start and Run a Profitable Retail Business by Jim Dion, Ted Topping
* Retail Business Kit for Dummies by Rick Segel
* How to Open a Financially Successful Bakery by Sharon Fullen, Douglas R. Brown
* The Baker's Trade: A Recipe for Creating the Successful Small Bakery by Zachary Y. Schat
* Baking for Profit: Starting a Small Bakery by George Bathie

There are plenty of free informational resources out there. Check the source box for links to articles.

Hope that helps! I wish you much success & happiness in all your ventures!

Answer 2

There is a book on line called Hurdle: The book on business planning that really helped me and got me excited about my small business. Here is a section that I thought was really awesome:

A business plan is not the most important single requirement for starting a business. Many other things are much more important. For example:

* Customers: The first thing you really need to start a business, maybe even the only thing you really need, is customers. It all starts with at least one customer.

* Customer needs: Your business must fulfill some type of customer need in order to be successful. Sometimes customer needs can be intangible, like security or prestige. Some customer needs seem frivolous, but they still matter. Make sure there is a market for your service or product. Your business will fail if it doesn't address a customer need.

Myths About Starting a Business

It is dangerous to fall in love with the idea of starting your own business without understanding the realities. There are several myths about owning and operating a business that should be avoided at all costs. These common myths cause a lot of problems:

* The myth of "being your own boss": You are not your own boss when you own a business. Your customers are your boss. Your bank is your boss. Your fixed costs are your boss.

* The myth of "independence": Owning a business doesn't make you independent -- not needing money makes you independent. As long as you need money, you can't be independent.

Think it Over

The folklore of business start-ups generally underestimates the risks. Imagine yourself missing mortgage payments when you can't cover your business costs and facing employees when you can't make payroll. Those negative images are also part of business ownership.

Don't go into a business based on the folklore and myths. There are plenty of good reasons to do it. As you start a company, plan ahead. Give yourself the benefit of a real estimate of start-up costs.

* If you can't afford to lose the money, then don't put it at risk.

* If you can't convince somebody else to put up the money, think again about the business you want to start.

Answer 3

Step 1 is identifying the type of business you wish to own.
Step 2 is to research that type of business as in depth as you can. I would recommend not only Internet research, but actually interviewing people in similar businesses. I have found that most business owners are more than willing to share their basic business information.
Step 3 is to put together a business plan. In that plan identify your business strengths and weaknesses, your market and your intentions to capture the market, identify income streams and expenses, with that knowledge, prepare an income and expense projection for the next couple of years. When you do that, make notes and comments as to why you thing your numbers are accurate.

With this information you will be ready to seek financing options. Don't think that the lender will borrow you 100% of your operating capital, you will need to have personal cash and assets injected into the business.

Answer 4

I would highly recommend writing a business plan to refine your idea and turn it into a presentable document. You will need one anyway to secure financing from a bank or lender.

Generally you need enough money to cover all start up expenses (any equipment, raw goods, business license fees, building rent, etc) plus enough cash/credit to cover 3-6 months of operating expenses.

Also, consider working with a small business consultant to help you start your business. There are a lot of details to worry about while starting your own business and a consultant will be able to successfully get your business started.

Check out www.cogworksolutions.com

Answer 5

You can get free help (business plan included) using an organization called the Service Core of Retired Executives (SCORE). They are just what it says; retired executives who now help up and coming business owners and entrepreneurs develop business plans, find funding/capital and generally guide them through the whole process.

Their website is www.score.org --from there, you can enter your zip code to find your local chapter and someone there will help you from that point on.

Good luck with your business!!

-Mike