Starting a Business: The 3-Part Series

by Jesse Smith

Part 1: Thinking About It; aka “plan your business”

It is reasonable that you have been thinking about starting up your own business. Many people have been dreaming about it for years; but it seems complicated and expensive, so most folks shy away and keep working for someone else.

It is difficult to be a startup in the modern marketplace, but if you have a good idea, some perseverance, and either a small amount of business sense or a partner who does, you may be able to make your dreams come true on a budget you can afford. It may end up taking longer than you would like it to, and you are guaranteed to run into unseen complications; but in the end there is a possibility that you may succeed in creating your own economic powerhouse; and most importantly you can be your own boss.

The first step along this path is to make a very basic business plan. You will want to do this at the outset; and you would be well advised to revisit and possibly rewrite your business plan again in a year or two.

Your first business plan can be very brief: I am going to sell granola bars. I will make the bars in my kitchen and sell them to other members of my pony club. I know there is a market there because I always see the moms eating granola bars while they hang out in the barns waiting for their kids; and the kids are always hungry after they get done with a good steeplechase or whatever. It will cost me x for the ingredients to make x number of bars, which I can sell for x each to make a projected total net profit of x.

Some things to think about as you describe your business plan: Is there another company you wish to emulate? Describe their business model, in general terms that will also be applicable to your situation.

What are you selling? How much will you sell each one for, and how much do they cost you to produce and transport? Is there enough of a market for your product or service that you could potentially make a real profit?

How will your company interact with customers? Will you have a physical storefront? Will you have a promotional website? Will you have an e-commerce website that allows your clients to place orders online? Where will your site be hosted? Will you have a phone number? How about a toll-free number? A fax line? Company e-mail? How will you advertise? Will you have a yellow pages listing? A large sign out in front of your shop?

Determine if you have sufficient startup capital of your own. To do this you may need to estimate how much money your business will require for its first year of operations, taking into account ongoing expenses such as production costs, rents, salaries, utilities and advertising, as well as capital investments and startup costs including equipment and machinery as well as the design and production of your online storefront and marketing materials. If you plan to pay for all this with your own money, make sure you would be able to withstand a total loss on your business investment without causing total ruin to your personal finances. In general there are three ways to finance a startup:

pay for the costs using money you have saved
pay for the costs using a credit card
get an investment loan

Obviously the third option is the best; but if you’ve never started a successful business before, it may be difficult to get an investment loan. At the very minimum you will need a very detailed outline of projected expenditures and revenue forecasts; and in many cases you will have to sacrifice a certain amount of control over your operation to the person or organization that fronted you the money. Your other option would be to start off on a very small scale niche market with probably relatively high prices. Either of these options may be worth it in order to finally launch your dream career so we encourage you to investigate all the possibilities. Talk to a loan officer at your local credit union, and contact your local Chamber of Commerce or Small Business Association to find out what possibilities would work best for you.

This topic is continued in part two of our series

Please note: This information is posted for reference only and is not meant to advise or condone any course of action. We are a design firm, not a law firm. If you have any questions, consult a qualified legal professional. Any actions you make are your own responsibility and Basementia will not be held liable for your mistakes should you make them.

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Graphic Design Printing Solutions Website Design Website Hosting Content authoring SPAP! Contact About Portfolio Articles Links Basementia Press Releases	Starting a Business: The 3-Part Series by Jesse Smith Part 1: Thinking About It; aka “plan your business” It is reasonable that you have been thinking about starting up your own business. Many people have been dreaming about it for years; but it seems complicated and expensive, so most folks shy away and keep working for someone else. It is difficult to be a startup in the modern marketplace, but if you have a good idea, some perseverance, and either a small amount of business sense or a partner who does, you may be able to make your dreams come true on a budget you can afford. It may end up taking longer than you would like it to, and you are guaranteed to run into unseen complications; but in the end there is a possibility that you may succeed in creating your own economic powerhouse; and most importantly you can be your own boss. The first step along this path is to make a very basic business plan. You will want to do this at the outset; and you would be well advised to revisit and possibly rewrite your business plan again in a year or two. Your first business plan can be very brief: I am going to sell granola bars. I will make the bars in my kitchen and sell them to other members of my pony club. I know there is a market there because I always see the moms eating granola bars while they hang out in the barns waiting for their kids; and the kids are always hungry after they get done with a good steeplechase or whatever. It will cost me x for the ingredients to make x number of bars, which I can sell for x each to make a projected total net profit of x. Some things to think about as you describe your business plan: Is there another company you wish to emulate? Describe their business model, in general terms that will also be applicable to your situation. What are you selling? How much will you sell each one for, and how much do they cost you to produce and transport? Is there enough of a market for your product or service that you could potentially make a real profit? How will your company interact with customers? Will you have a physical storefront? Will you have a promotional website? Will you have an e-commerce website that allows your clients to place orders online? Where will your site be hosted? Will you have a phone number? How about a toll-free number? A fax line? Company e-mail? How will you advertise? Will you have a yellow pages listing? A large sign out in front of your shop? Determine if you have sufficient startup capital of your own. To do this you may need to estimate how much money your business will require for its first year of operations, taking into account ongoing expenses such as production costs, rents, salaries, utilities and advertising, as well as capital investments and startup costs including equipment and machinery as well as the design and production of your online storefront and marketing materials. If you plan to pay for all this with your own money, make sure you would be able to withstand a total loss on your business investment without causing total ruin to your personal finances. In general there are three ways to finance a startup: pay for the costs using money you have saved pay for the costs using a credit card get an investment loan Obviously the third option is the best; but if you’ve never started a successful business before, it may be difficult to get an investment loan. At the very minimum you will need a very detailed outline of projected expenditures and revenue forecasts; and in many cases you will have to sacrifice a certain amount of control over your operation to the person or organization that fronted you the money. Your other option would be to start off on a very small scale niche market with probably relatively high prices. Either of these options may be worth it in order to finally launch your dream career so we encourage you to investigate all the possibilities. Talk to a loan officer at your local credit union, and contact your local Chamber of Commerce or Small Business Association to find out what possibilities would work best for you. This topic is continued in part two of our series Please note: This information is posted for reference only and is not meant to advise or condone any course of action. We are a design firm, not a law firm. If you have any questions, consult a qualified legal professional. Any actions you make are your own responsibility and Basementia will not be held liable for your mistakes should you make them.

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