1: List your reasons for wanting to go into
business. Some of the most common reasons for starting a business
are:
- Self-management
- Financial independence
- Creative freedom
- Full use of personal skills and knowledge
2: Next determine what business is right for you. Ask yourself
these questions:
- What do I like to do with my time?
- What technical skills have I learned or developed?
- What do others say I am good at?
- Will I have the support of my family?
- How much time do I have to run a successful business?
- Do I have any hobbies or interests that are marketable?
3: Identify your business niche. Research and answer these questions:
- What business am I interested in starting?
- What services or products will I sell?
- Is my idea practical, and will it fill a need?
- What is my competition?
- What is my business's advantage over existing firms?
- Can I deliver a better quality service?
- Can I create a demand for my business?
4: The final step before developing your plan is the pre-business
checklist. You should answer these questions:
- What skills and experience do I bring to the business?
- What legal structure will I use?
- How will my company's business records be maintained?
- What insurance coverage will be needed?
- What equipment or supplies will I need?
- How will I compensate myself?
- What are my resources?
- What financing will I need?
- Where will my business be located?
- What will I name my business?
Your answers will help you create a focused, well-researched business
plan that will serve as a blueprint for business operations, management,
and capitalization. SBA offers a tutorial on preparing a solid plan.
Once you have completed your business plan, review it with a friend
or business associate. When you feel comfortable with the content
and structure, review and discuss it with your banker. The business
plan is a flexible document that should change as your business
grows.
For a comprehensive overview of the startup process:
Review SBA's online business course |