Starting a Small Business

Starting a small business is not an easy task. You will need a significant amount of cash, expertise and, most importantly, persistence. Don’t expect everything to go smooth when you are starting a small business. It often takes several years for a new business to establish itself in the market place.

When starting a small business it is important to work out a good business plan in advance. In the plan, you should clearly detail your business model, objectives and an activity plan that spells out exactly how you are planning to achieve your goals. The plan should include a section that lists the resources that are required – financial and otherwise.

Then, when you have started your business, you should regularly review your plan and make necessary adjustments. You should persistently follow your plan with your goals in mind.

Starting a Small Business – Company Structures

Before starting, you need to decide on the most appropriate company structure. In most cases, this will either be a sole proprietorship, partnership or an incorporated corporation. A sole proprietorship will be useful if you are starting a small business that is locally based and if there is little risk involved. Keep in mind that as a sole proprietor, you will be personally liable for all business activities. A partnership is useful if more than one person is involved. Again, as a partner you may be personally liable for business expenses. A corporation allows you to limit your liability to the amount of the share capital. Before starting a small business, we strongly recommend that you seek advice from a qualified lawyer or accountant in order to determine the company structure that is most appropriate for you.

Starting a Small Business to Work from Home

Working from home has its many challenges. It’s hard to keep up discipline when working alone at home. There may also be children or other relatives who provide a distraction. On the other hand, working from home and being able to organise your own work schedule can be most fulfilling.

When starting a small business and working from home, it is most important to set up a separate work area. Ideally, you should set up a separate room as an office, preferably with a separate entry. If this is not possible, at least dedicate a part of your house as a work area.

In order to avoid unnecessary distractions, relatives should be asked not to disturb you during work time. You could develop a system to let them know when it is fine for them to disturb you and when not. For example, a closed door could mean that you want to be undisturbed, while everybody may enter the office when the door is open.

Another challenge when starting a small business from home are young children. They tend to be noisy when you are on the phone. This may create a bad impression with your clients. If you have small children, you should also tell them not to pick up the business telephone. While you think it is cute to see little Jonnie pick up the phone, your client may think otherwise. If you are not at home, you should switch on your answering machine or redirect your calls to a professional answering service.