The United States has always been the land of opportunity; anyone has the right and “theoretical” opportunity to start a business and be successful. The risks of starting your own business can be high, but the rewards can be well worth it.
The fact is, however, more businesses fail each year than start. In 2014, there were 514,332 new businesses started in the United States; unfortunately, there were 548,159 closures and over 55,000 bankruptcies.
There are many reasons why a business fails. They include poor product concept, lack of a reasoned business plan, undercapitalization, insufficient marketing efforts, and changing market economics.
So with statistics like these, how do you become a business success and not a business failure? The answer is to have a viable strategic and tactical plan, seek help, and be smart about how you set up your business and how much you spend to do that.
Five Steps for Starting a Business for Under $1,000
1. Strategic Plan. All of us have heard of a “back-of-the-napkin” story about how a small idea turned into a successful business—and these stories do happen. However, it is typically the basic concept that happens on the back of a napkin, not the actual plan to bring that concept to the market. The first step is to develop a well-thought-out business plan that addresses key success factors such as:
Name of firm. This should be descriptive of your service or product; such names generate more web visits than ones using fictitious or personal names.
Owner or owner-to-be. Are you going to be the sole owner or will you have investors or/and partners?