Starting a Business All-In-One For Dummies Cheat Sheet

Starting and running your own business can be one of the greatest joys in life. It can also be the hardest thing you ever do. The fact that no one is going to be standing over your shoulder telling you what to do can be simultaneously exhilarating and frightening. Finding sources of inspiration can keep you going in the absence of that voice over your shoulder. Nailing down a handful of basic, fundamental practices can keep you on the right track. And getting a grip on the money constantly flowing in and out of your business is one of the big keys to success.

Sources of inspiration for starting a business

Maybe you’ve been talking about your great business idea for a long time now. You know you can do it — so what’s stopping you? Or maybe you started taking steps toward making your idea a reality, but something came up and you just haven’t gotten around to committing yourself. The following suggestions can help you get some traction on your idea for starting a business. They can also serve to inspire you and spur you on in your business endeavors.

Be sure all is good with your immediate family, loved ones, or those very close to you who, in one way or another, are involved in your daily life

They can be a powerful source of strength and inspiration. But starting and then running a business is almost always a full-time job and requires a very significant claim on your time and energy. If there’s friction within your circle about the choices you’re making, it’s best to resolve it before you move forward. The last thing you want is to be fighting fires on the home front while trying to get the ball rolling on your new business.

Join a community business organization

Almost every community has an organization where you can meet and talk with other business owners. If you get involved, you’ll have no trouble finding people who offer encouragement to take the next step in starting your business. You’ll also find people who can help you take that step. Options to consider include Rotary International, your local Chamber of Commerce, and various trade organizations for your industry.

Spend time with someone who has already started a business

What better way to get inspired to start a business than to spend time with someone who has done just that? Spend a day with an entrepreneur or business owner you admire — perhaps someone in your favorite industry. Shadow that person, observing what they do on a day-to-day basis. Entrepreneurs love to talk with fellow entrepreneurs, especially budding entrepreneurs. Your chosen person can give you personal advice based on their experience on how to get started, what pitfalls to look out for, and how to balance your personal and business lives.

‍Find a mentor

When you’re starting a business for the first time, it’s wonderful to have someone you can turn to when you need advice, when you’re frustrated or discouraged, or when you want to share a small win. Mentors come in all shapes and sizes, but the best mentors are ones who believe in you and can be honest with you, who introduce you to important people you need to meet, and who pick you up when you fall down. A mentor may be someone who has had a successful business in the industry in which you’re interested or someone whom you admire regardless of whether they happen to have experience in the same area as you. That’s why it’s so important to network, get out there, and meet new people, because you never know when you’ll meet your mentor, the person who ultimately starts you on your way.

Do something — anything

Leap into your opportunity with both feet and start doing something that makes your business happen. File for your DBA (“doing business as”) or your incorporation papers with a business name. Set up your home office to accommodate the new business until it’s ready to move to a more formal site (or like many entrepreneurs today, keep your business at home and operate it online). Get your domain address for the web. Have some business cards made up. It doesn’t take much to start building a critical mass of activities so that, before you know it, you feel like you’re honestly in business.

Tips for success in starting a business

Although no one can guarantee that your business will be a success, if you work hard, price your products and/or services right, and keep your customers satisfied, you stand a good chance of starting and building a successful company. The results you get out of your business are a direct result of the work you put into it. The most successful owners — those who get the results they hoped for — share many of the following traits.

You and your startup business’s money

Of course, you want your business to make money. Duh! That shouldn’t be the only reason you’re starting a business, but it’s certainly a big one. You spend money on your business, your customers pay you money, money goes out for this, money comes in for that . . . one glance at your books should remind you that the sheer money aspect of running a business can get complicated.

You have to stay on top of it, or it will climb on top of you and stress you out. Keeping three pieces of advice in mind can help focus your mind when to comes to handling the money for your business.

Charge what you’re worth

No matter how hard you work, if you charge your customers less than you’re worth, you won’t be able to stay in business for long. Why would you charge less than you’re worth? Well, some people do so because they don’t realize exactly how much they are worth. Others charge less than they’re worth because they’re embarrassed or afraid to ask for an amount that reflects their true worth. Whatever the reason, if you don’t get paid what you’re worth, you may very well drive yourself out of business.

If you don’t know what you’re worth, find out what other companies charge for similar products or services by researching catalogs, price lists, stores, and e-commerce and auction websites. If you can’t find written prices or listings on the web, call or email the companies for information. From there, develop a pricing or fee structure that will help you attain your personal goals.

Avoid unnecessary expenses

Spend your company’s hard-earned money only when you have to. You can often get a lot more mileage out of stuff than your itchy spending urges would prefer. A good example of this is your personal computer. Every other week, computer technology makes another great leap forward, which may constantly tempt you to upgrade to the latest and greatest and fastest computer with all the latest bells and whistles. Unless your older, slower, and less flashy computer — and the software within it — is actually getting in the way of your ability to do business efficiently, stick with it for as long as you possibly can.

Do your best to hold the line on all the other expenses that simply drain your financial reserves while bringing in little or no additional revenue. If you’re going to eat out, for example, go to less expensive places. Save the expensive meals for your highest-paying customers. Or consider inviting your best customers over as dinner guests in your home.

Manage your cash flow

Cash, or the lack of it, is one of the key indicators of a company’s success over the long run. If you have cash, you can buy and stock new products for your customers, develop innovative new services for your clients, pay for your day-to-day operations, and expand your business. If you don’t have cash, your business will certainly suffer, and so will your customers and clients. You may even jeopardize your own personal or family financial situation.

Simply watching your cash flow — the money going in and out of your business — isn’t enough; you have to actively manage it. Managing your cash flow means looking to the future, planning and scheduling your projected cash inflows and outflows, billing quickly, staying on top of money owed you, and paying attention to the money that goes in and out of your business.