Five Crucial Things To Consider When Starting A Small Business

by Shellie Turner
 
So, you've decided to start a small business-congratulations! You are joining many Americans who are tired of working for others and desire to work for themselves. I made this transition myself after eight years of teaching in the public schools. I did not regret the time spent with teaching future generations-but I became "burned out" and needed a change. My business is still relatively new, but I've already learned some valuable things that every small business owner MUST know when they are thinking about starting a small business:
 
1) Tax and legal issues
One of the most important decisions you will make is in regards to the legal structure of your company. Generally, two main types of business structures are what are known as sole proprietorship and incorporation. Sole proprietorship is the most popular method of running a small business. Essentially, it is a one-person business that is not incorporated. This is generally and easy method, though even sole proprietorships will need to comply with local business and zoning laws. Incorporation is a process which primarily protects the owner's personal assets. In the event that the owner were to be sued, only the business assets could be taken. Certainly, there are all kinds of tax implications which need to be considered, and it is best to consult with a tax advisor regarding tax benefits available to you. The Internal Revenue Service also has free information for small business owners.
 
2) Choosing the Right Name
This is one of the most important decisions you will make regarding your small business! When choosing a name, it is critical to choose one that lets the consumer know what you are all about. For example: "Say It With Flowers" is much more specific than "Jenny's Knick Knacks." The first example allows the consumer to more quickly identify what your product is. It is also important to consider how a potential name will look when typed into a web browser. Generally, the longer a name, the harder it will be for the customer to remember you (and your all-important web address)! You will also want to check and see if the name already exists, and, if so-is it copyrighted?
 
3) Finding Your Niche
Many people mistakenly think that offering everything "under the sun" is the way to go. Instead, focus on a particular target group. Ask yourself: "what is my niche market for my product? Who am I trying to reach?" For example, our company's niche market is mostly female, who are family-oriented and comfortable with online shopping. We can further define this niche as: moms, grandmas, married women, single women, etc. When you try to be "all things to all peoples", the chances of success are not as likely as finding out where your product line will sell and making efforts there. Any product lines that are introduced need to complement the existing business as well. You would not want to add tools to a floral shop-it just doesn't compliment each other. Yet, a gift basket business would be a great compliment to a floral shop!
 
4) Advertising
Every business MUST have advertising to be successful. This is especially true in the age of the internet. A internet site, preferably with your own domain, is essential. Many people will not buy from a company who does not have a presence on the web! This in itself is a great advertising tool, but just having a website won't attract anyone. You need to go to all of the big search engines (Yahoo!, Google, etc.) and search for a "submit a site" link. There is no guarantee that your site will be included right away (or at all), but usually it will get into the system. However, each of the "big" search engines usually require you to purchase some sort of advertising plan. Plans such as PPC (pay-per-click) are good because you are only charged when the user clicks on the link to your website. There are many good traffic exchanges which allow you to have visitors to your website-however, some of these are less than reputable, so be careful! Finally, business cards, magnets for your vehicles, and flyers are all a great way to promote your business. I highly recommend VistaPrint.Com for low-cost advertising options in these areas. They even offer you FREE business cards and other FREE products (minus shipping and handling). The best advertising, of course, is a satisfied customer. Word of mouth is priceless!
 
5) Customer Service
Customer service is a lost art today. Call any "big box" company, and expect to wade through endless options before, if ever, actually getting to speak to a real, live person. This is the benefit of being a small business. When someone calls your phone, you can actually answer! When people are ready to make a decision, or simply seeking to make an informed decision, they want a real person to help them, and not a machine. The greatest enemy of the small business owner is voicemail. No matter how nice your message is, people won't leave a message if you don't answer! Instead, consider using a cell phone as your primary business line-it's cheaper than a business line through the telephone company, and it allows you maximum portability so that you ALWAYS have your business life line with you.
 
Make no mistake-running a business is hard work! But many people find great satisfaction in working from home and running a small business. They are working for themselves, and they have more time with their family. Good luck to you!
 
About the author:
Shellie Turner, Owner, Sweet Wishes By Shellie, Florence, KY http://www.sweetwishesbyshellie.com