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Starting a small business is a risky
and potentially expensive proposition. If you'll follow these
seven formulas your risk can be reduced significantly.
Number one
Set
a specific goal and visualize it as a reality. Play the picture of your
goal as already realized on the screen of your mind over and over again.
Number two
Look
for a problem you can solve with a product or service that is high quality
and good value. All successful businesses are based on products or
services that are high quality and good value.
Number three
Start
small and learn your business thoroughly. Be patient. Invest time rather
than a lot of money. One of the best ways to build a business is to
start off on a bootstrap. This means that you start off with very little
money and you grow your business with the money that you earn in the
business, rather than outside financing, borrowing, loans from friends and
so on.
Number four
Test
every major move before you invest in it. Test, test, test. Don't plunge
into a business. Move ahead carefully, one step at a time.
Number five
Expand
on the basis of your success. Borrow only as much money as can be serviced
by the cash flow from the business.
If you're starting off with no money, go to work part-time for a business
in a field that interests you. It's a valuable form of on-the-job
training. Work evenings or work weekends. Or work on your holidays if you
like. Sometimes a business that looks tremendous from the outside will
look terrible once you start working for it. But sometimes when you start
working for a business, you start to get an intimate understanding of how
it works and you get insights on how you can improve it.
Number six
Expand your business management expertise. Most businesses fail because of managerial
incompetence. So take the time to learn what you need to know to manage
your business. Be patient. The time you invest before you start will pay
off over and over again in the months and years ahead.
Number seven
Be prepared. The number one reason that people succeed in starting
their own businesses is that they have the business knowledge and experience, in
advance that they need to succeed. Do your homework.
The Bottom Line
Start with a solid idea. Begin with a small operation. Some people think that
they can be successful faster by putting all their savings at risk at the
very beginning. The opposite is true. Start small and grow out of the cash flow from successful
operations
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