User:Ravi Namboori Entrepreneur/sandbox

It is a fact that many startup businesses flounder, but is that reason enough not to hold you back? It may sound clichéd but the fact is that you should have a proper business plan in place before you embark into it. A well thought out business idea has created many successful entrepreneurs. The plan must spell out your goals, keep you unswervingly focused on your goal, and let you be prepared should any contingencies arise. Sketch out a road map with your main objectives, detailing how you want to position your business. This is a key as potential investors and partners alike would want to know what exactly you are wanting to do before they invest in your venture.

This will help you be in control once your business is up and running. This plan will be your reference point when you start examining your progress later at regular intervals once you have started off. In case your business is a success, this plan will tell you how to go about expanding. It could be having more staff or moving over to an office with a larger space.

It is common sense that if the economic scenario is not too rosy, raising money is the toughest thing. Many small businesses borrow money from various sources. Apart from friends and family, it will be your business connections you will turn to. Venture capitalists and other investors are not your sources as yet.

A major mistake committed by many startups is underestimation of expenses in the early stages of planning. This causes them to default on payments of bills as budgeting did not factor in unexpected expenses. It is imperative to have some extra bucks in hand for a rainy day. If you are funding your business yourself, you will depend on savings or low interest credit cards. If you raise money from your close friends and family members, make sure to protect both them and yourself from legal issues. These can ruin your personal equations with the people you have been close to.

If you have a plan that you are confident of, do invest some money of your own that will keep you afloat when you are not in a position to procure a business loan.

In this digital age, never ever underestimate the power of a professional website, even if your business is small. Do not also undermine social media, particularly a Facebook page and a LinkedIn account. Today, most of your potential customers look at the Internet as their main reference tool. Most customers, these days, do their research mostly over this medium. These will keep your potential investors and partners in the loop and keep them informed as to how your business is functioning.

Pay your taxes promptly so as to be in the good books of IRS. In case you have missed out on the deadline for tax-filing due to various reasons, ensure that you file for an extension with the IRS. This would give you time until 15 October every year for filing your taxes. Let the IRS also know that you are not the kind who tries to evade paying taxes. If filing for an extension, do communicate with the IRS in order that you can negotiate and pay your taxes at a decided date.

Before anybody embarks on setting up a small business, it is vital that they undertake market research. It will tell you what is in store for you or your particular sphere of business. You can go ahead only if the study throws up positive results.

Prior to conducting your research, try to understand who your likely customers would be. Also, have a relook at your business idea to see if your business plan is in touch with the changing times.

Identify your potential competitors, and also see if there is enough space for you to jump onto the same bandwagon.

Do remember that market research is important even after your business has taken off. It has to be revisited at regular intervals. Do your own research too by keeping tabs on your competitors. For example, you will know if they have added any value propositions to the services or products being offered. Finally if you have decided to go ahead, zero in on your marketing plans, such as product, promotion and pricing.

Undertake an analysis as to who is likely to buy your product and also decide on your pricing strategy, what your advertising mediums should be. Most importantly do a SWOT analysis to realize your strengths, weaknesses, opportunities, and threats. This is important as it may make you modify your plans.

Risks are inherent in any business, both big and small. But you will benefit if you carry out your business plans in a focused manner. Successful persons like Steve Jobs, Michael Bloomberg or even a Larry Page did take ideas that were risky to get where they are. They also surely committed many mistakes in their early days.

There are other things that any entrepreneur will learn himself when he is on the ball. Nobody can advise you as to how you have to handle them. Needless to say, you will learn them yourself.