Start Your Own Small Business Now!

Funding is usually the the biggest hurdle to being able to start your own small business. Since so many people are intrested in locating “free” money I will discuss a couple of the most sought after forms of free money.

Angel funding is money that is usually gifted or given to you for your small business startup. Before you get all excited at the prospect of finally finding a money source, let’s discuss where Angels come from. Angels are usually people you already know. Maybe they are mentors, current or former. They could be advisers. They could be friends or family that know you and trust you and love you and what to see you succeed. Maybe they have heard your pitch or seen your business plan and are really on board with your ideas. They might be in a position to be able to give you a few thousand dollars to get you started. That is Angel funding.

You likely won’t find an Angel association or group handing out cash to strangers, so don’t waste your time searching for such groups.

I’ve already discussed grants in a few posts. Look here for those discussions.  Unfortunately, you won’t find free money through grants either. Sorry folks. That’s the hard cold reality. Grants for start ups is a myth and many an entrepreneur has wasted countless hours in search of a grant for their new business.

Next post I will discuss venture capitalist money as another funding source. Yes, there are groups of venture capitalists looking to fund businesses. But as with most things, there is good news and there is bad news associated with that type of funding. Come back soon to read more about that. In the meantime look at the other posts for more funding ideas. Click here.

If you are interested in making money with an internet site then you must use affiliates!

Affiliate sales are the easiest way to earn money from a website. Not sure what affiliate sales are? Look at a post in this blog where I recommend SiteSell.com. This is an example of an affiliate. I recommend the product on my site and when anyone buys the product I receive a commission.

But keep in mind, that I recommend this particular product because I truly believe this is a great product and a superb company. You will notice that I actually offer very few products from affiliates. That is because I am very choosy about what I recommend. But that is a key component to successful affiliate sales. The more you believe in the product, the easier it is to recommend and generate the commissions naturally.

I also believe that generating an income from a website can be achieved faster and easier by using the affiliates that offer the most generous commissions. So far I can tell you that hands down, my biggest money generator is SiteSell.com. My first big commission sale was from Site Sell and it continues to be my best.

But in order to be able to earn money from a web site business, you first must create the website. Without hesitation I can tell you that SiteSell.com is the best way to create a web site fast and easy. They handle all of the technical stuff as you write your pages. They are there every step of the way to help you as much as you need. They also handle the hosting. The best part is that they are super affordable. I can also attest to the fact that I have heard only great things about this company. That is why I chose them as an affiliate and I cannot tell you how happy I am that I did! Learn more about how to earn the highest commissions here.

Now, to take affiliate sales to the next level I am recommending the product you see below. Rosalind Garner is extremely successful at what she does, generating income from affiliate sales of course. So grab yourself a copy so you too can start to earn money from your website.

Read the amazing true story of how one woman, with no previous business experience, earned $436,797+ in 2002 and now earns MUCH MORE than that … just by selling other people’s stuff online! In her down-to-earth, sincere and often humorous style, Rosalind Gardner guides you through the entire process of building an affiliate marketing business on the ‘Net.Frequently revised and updated to reflect industry changes, the Super Affiliate Handbook now consists of 236 pages and 124 screenshots that will show you step-by-step how to become a Super Affiliate. You’ll learn how to pick the best affiliate programs, negotiate a commission raise and save time, money and effort on everything from affiliate software to web hosting.To learn exactly how she does it, Click Here.

So just how long and how detailed is a business plan supposed to be? This question has started many heated discussions because people seem to be very divided when it comes to this topic.

My own personal experiences with loan officers and SBA representatives taught me that short and concise is best. This has always been my advice to others when trying to determine which way to go. And even though I didn’t seem to have too many other entrepreneurs (or preneuraholics as I like to call us) that agreed with me, I knew from my meetings with lenders that they much prefer short and concise. And now I finally feel vindicated in my beliefs. I was listening to the director of the entrepreneur program of the University of Southern California , Tom O’Malia and he touts the same advice: CONCISE and SHORT

He also agrees with me when I say that the Executive Summary is THE SINGLE MOST IMPORTANT PAGE of the formal business plan. That is the first page that the reader will read. They have to be engrossed enough to want to continue to read with great interest. Not just skim through the rest of the plan as a courtesy, but to truly want to be so interested that they feel compelled to continue reading.

That was the strategy I took with my first, and of course subesquent, business plans. While the Executive Summary is the last section that you write (because it summarizes the rest of the plan), it is the first section that is read. It is important to keep it short (as with the remainder of the business plan), but thoroughly exciting so that you capture the reader’s attention right from the first paragraph. The Executive Summary should be no longer than 2 pages.

The entire business plan can be completed in as few as 20 pages.

Since this just a blog and space is limited, I cannot teach you here how to write your own business plan. But I have written the book, “You Can Write Your Own Successful Business Plan” where I take you step-by-step and tell you exactly how to do this. Look here to order your copy (hard copy or eBook).

Writing your business plan need not be the stumbling block that stands between you and your dream. It can be done. And you can do it yourself. My book is specially written for the absolute beginner with no experience with a business plan. It shows you what makes up a formal business plan (the SBA preferred format), how to write the business plan, and gives you an example of a simple plan that you can follow along and see exactly how it was created. The ebook version is only $9.99. Check it out.

As you’ve heard me say many, many times. There are no free rides. There are no grants for for-profit startups.

I read in a WAHM forum about a mom that normally was extremely careful about scams and very aware and always on the lookout. However, she let her guard down just one time when she found a resource grants online that really looked legit. They asked for $1.50 to gain access to their info. She read and reread their agreement before she clicked and paid the $1.50. She didn’t see anything that sent up any red flags so she figured she was safe. Afterall, if it was bogus she was only out the $1.50.

She didn’t see anything useful so she left the sight. After a while (I couldn’t tell how long) she discovered a charge to her bank account for $49.50 from this company! She called them several times to complain to no avail. They swore up and down that they clearly stated on their site that if she didn’t cancel within 7 days, they would automatically charge her $49.50. She fought and fought but never got her money back.

Folks, please stop grasping at straws. Forget about grants. Government grants just are not available for the regular Joe/Jane that is trying to start a new small biz. You need to look elsewhere for funding.

Where? Well to be honest funding is still mostly gotten from loans or personal savings or home equity or even credit cards. There are some other obscure sources that are legitimate, but still not so easy to obtain. For example, there is Prosper.com where pretty much anyone qualifies for loans up to I believe $25,000. This place is a throwback to times when communities banded together to help each other. This place matches lenders with borrowers. The lenders are people with a little extra cash that they are willing to loan at variable interest rates. The borrower doens’t necessarily need to have good credit, however, good credit does help in finding the lenders with the lower interest rates. Loans are available to borrowers with not so great credit, but of course at higher rates.

What’s the catch? Well, technically there really is no catch. But the problem is that if you are looking for a loan of say $25,000, the borrower may need to combine a bunch of different loans. The reason for that is that lenders are more apt to give loans in very small amounts ($50 or so). But it is an option to pursue if you cannot qualify for a bank loan.

The cold hard truth is that we all need to rely on ourselves and our own ingenuity and be willing to work and save, save, save. Since SBA backed loans require your own infusion of cash (20-30% of your startup funding needs), plus collateral, plus experience in the industry you are going into, it is also a good idea to get some experience in your industry of choice while saving up your portion of the cash.

If you already have experience, you are that much more ahead of the game.

Bottom line…..get grants out of your head and get real.

I offer much more detail about where to find funding in my One Stop Business Startup Kit. 

Free money?? Uh, no. Sorry. If you plan to fund your business with grants your business will very likely never get off the ground. Ever since that infomercial started playing on late night tv several years ago, so many people have fallen under the mistaken impression that government grants are out there for the taking. The truth of the matter is that while there are indeed grants out there, those grants are not meant for small business startups. They are not for for-profit businesses.

Government grants (federal or state) for example are meant to create jobs (not just for yourself or your few employees), but for major players. Sometimes grants are targetted for manufacturers or environmental concerns or scientific studies. Usually grants are meant to targic a very specific niche/need in a specific community.

Applying for a grant can be extremely tedious and can take months. The criteria is very limited and restrictive. But the bottom line is, grants are not for new small business startups. Ok, you might see a very small grant or contest here and there, but the prize is usually very small. Maybe $1500 or so. Not enough to make a difference for most funding needs. And even then the competition will be fierce.

Additionally, even for those tiny “grants” (contests) you will likely be required to provide ongoing monthly reporting on your business activities. It can be a real hassle for that little bit of money.

A typical small business startup will likely require at the very least around $10,000. More likely between $50,000 and $100,000 and higher. The exception to that would be very small home based businesses or online businesses.

I know I’m bursting a lot of hopeful bubbles out there, but I hate to see folks spinning their wheels and wasting time chasing down non existent grants. It’s best to get real and start looking for funding realistically.

More on those other options to come.

I just realized this is the last day of June and I haven’t posted this month at all! Why not? Truth be told, I’m techno challenged. I upgraded to a better computer and haven’t been able to transfer my files. That means I haven’t been able to keep up with my website SmallBusinessStartup.BIZ .

I was just notified that Google Adsense Referrals are being discontinued, so I need to remove those and replace with something. Geeze, just when I learned to add those ads to my pages, they go and throw a monkey wrench at me.

I also plan a major change to the main site which will take a lot of time and effort. But my end goal is to be albe to provide much more info on the main site for FREE!

So, stay tuned and watch for the new and improved pages soon!

In the meantime, look around. There is a ton of great info on this blog (if I may say so myself). 

If you are hoping to someday start your own small business, you’ve come to the right place. Scroll down and you’ll find tips and information on how to get started. If you want to start an internet based biz you’ll find information on where to go to get your website built.

If you are a stay at home mom you will find info for WAHM’s (work at home moms).

If you are wondering if a franchise is the way to go, you’ll find a post about franchises. I owned my own franchise (a children’s retail shop) so I can give you plenty of insider info!

You’ll see that my posts tend to be long. Well that’s because I intend to give you plenty of truly useful info here! So, keep reading….there’s plenty to get you started on that business idea of yours.

Let’s get back to Ann who is starting her first small business. If you recall from the April 5, 2008 post titled Actual New Business Step by Step, Ann had developed a new product and needed to set up her company to be able to sell her product. Her intention was to sell initially from a web site to keep start up costs as low as possible. Eventually she wants to expand by making her product available at wholesale to retailers.

First things first. Ann had long since decided on the product name and I advised her that she also needed a business name. Two separate names. The business name is needed to be able to register the business with your local and/or state government. In order to register the business, a legal structure for the business must be chosen. More about that will follow. However, I also advised Ann that as soon as she chose her product and business names, she needed to purchase a domain name for her website. I always steer folks to www.GoDaddy.com for their unbeatable low prices and outstanding customer service. (When deciding on names for your business it is always a good idea to check on the availability of the domain name during your brainstorming. Domain names go fast and often you need to change gears when it comes to choosing a name.)

Back to the business structure….What exactly is a business structure (also known as business entity)?

A business structure is the legal structure under which you are operating your business. You must choose a business entity for taxation purposes. The simplest form is  Sole Proprietorship, then Partnership. In days gone by these were the most often chosen types. However, with today’s litigation crazed mentality, many new businesses choose an LLC (Limited Liability Company) because of the relative ease of formation and the many tax and liability advantages. For others an S Corp (hybrid of the C Corporation) makes the most sense.

This is where I remind you to pay a visit to an accountant and an attorney. The initial consultation visits are usually free so take advantage of that offer. You can gleen quite a lot of information from those free visits! An accountant can recommend which business entity offers the best tax benefits and an attorney can advise as to which entity offers the best liability protection.

I learned an extrememly valuable and little known piece of information from my free consultation with an attorney regarding the popular LLC. Many new businesses are needlessly forming LLC’s under the erroneous assumption that their personal assets are then fully protected from potential law suits. This is WRONG. I go into full detail in the One Stop Business Startup Kit .

Ann chose to do business as a Sole Proprietor. She intends to start small and see where this new business leads before making things any more complicated than needed. As a sole proprietor she can file her business taxes with her personal taxes. Simple and clear cut.

With her business structure chosen she was able to then register her new business with the county offices. Registering a business in usually very simple, quick and inexpensive. It took Ann all of 15 minutes to fill out a one page form and $5.00. This county requires that the new business name request be announced through the local newspaper’s legal notices. A quick 10 minute visit to local newspaper office with a form provided by the county and payment for the legal ad and she was done. The business registration arrived by mail 3 weeks later. How simple is that?

Stay tuned for the next post for the next step in starting a new small business.

For those of you that missed the Spring special promotion for Site Sell’s Site Build It, this is your luck day. Ok, sorry, that sounds corny and over used. But seriously, for the first time ever, Site Sell is promoting a Mother’s Day $100 special. If you haven’t read the previous post where I break down how Site Build It works and what a truly great deal they offer (and a great product of course!), I urge you to read the post from March 16th, Spring Is Here, Time to Build Your Online Biz.

Why do I so heavily promote Site Build It? Because I’m here to show you how to start our own business. And one of the fastest, easiest ways to start a business is with an online business. For those of you that want to start a more traditional, brick and mortar business, you still need a web site. There’s no getting around it. A web site is a must. If you want to start a home-based business you need a web site. And Site Build It totally simplifies the whole process of building your own web site.

The genius behind the Site Sell model is their subscription program. For an amazingly low $300 you get to build your website and have it hosted. There is no more monthly billing. With most other hosting companies you pay a monthly fee which adds up to much more than the $300 you pay for Site Build It. But with Site Build It you get much more. You get the best customer service around. I have heard from looky loos (you know, just browsing) that have asked question after question from Site Sell’s customer service folks, often over weeks and months, and they are always treated like a life long customer. And they haven’t even spent a penny yet! Where else are you going to find that kind of customer service?? Go here to have your questions answered.

Since the current special promotion is in honor of Mother’s Day, it’s only fitting to mention that Site Sell is perfect for WAHMs (work at home moms). Learn why stay at home moms yearning to bring in some extra income should build their own online business. (Check out the video of the day in the life of a Site Build It mom.)

When my kids were very young I chose to “stay at home”. That was a very deliberate decision. But it was long before the World Wide Web when staying home meant making ends meet on one income. Boy, times have changed! Today’s moms have unlimited options with online businesses. You really can create an online business and bring in some extra income while staying home with the kids. Take the mystery out of the equation with Site Build It.

I haven’t posted in a few days because I’ve been busy helping someone, one on one, with a new product development and business startup. Then it occurred to me that this would be a perfect opportunity to have readers follow along with an actual new business start up to see how it’s done, step by step.

You will see actual steps used to take a new business from concept to reality. For confidentiality reasons I will change the person’s name and not reveal the product details or business name.

“Ann” had come up with what she considered a unique product idea. She embarked on an in depth Internet search to see if this product was already on the market. The initial search didn’t come up with anything even remotely similar.  Could this be a marketable product she wondered? There was no reason why not. It was a simple concept that could be created at home.

She started brainstorming for a suitable prototype.  With 3 little ones underfoot, she found it difficult to devote the time needed. She designed the initial examples and it took several more months of painstaking work and lots of trial and error to come up with the final design.

During the design process she came up with a product name. It was during the initial development process that she asked for help. Ann felt clueless as to how to proceed.

I let her know that since she had settled on a product name, the next step was to purchase a domain name. It is absolutely essential to have a web site for just about any business. Domain names go quickly so it is important to do this early on. I recommended Ann use www.GoDaddy.com (at the top of the home page click on Domains, then from the drop down menu choose Register). I have used other registrars that charged A LOT more for the same service. GoDaddy is by far the best and least expensive. For as low as $1.99 you can register a domain name. The average is closer to $7.99, but that is a bargain.

Just as Ann was really making headway with her new product she hit a snag. A huge snag. She had developed the product using a material that had a very distinct quality that would become the focus of the product’s usefullness. Used in other, totally different products, this particular quality worked perfectly. She was working  under the assumption that her product would work just as well. When she finally tested her product she discovered that it didn’t work! It didn’t hold up under certain conditions. It didn’t deliver the main property she was touting as THE selling point! She couldn’t believe that after months of hard work it was totally useless! The dissapointment was heart wrenching.

Then she remembered that she had initially thought of this idea without the so-called miracle property. That had been an idea that was developed later in the process. Why not go back to the original design? It could still be a great product.

Back to the drawing board. Literally. Several more months later she finally settled on a prototype that she believed was ready. Again, Ann didn’t know what to do next.

As I ran down a long to-do list,  Ann’s eyes just glazed over. She had no idea what I was talking about when I said she needed to decide on a business structure and she needed to register the business and get a reseller ID to be able to buy materials wholesale. She needed to develop a real marketing plan and finalize the packaging and price point. And she needed to develop a logo and trademark it. And she needed to set up a web site and merchant account. But first she needed a bank account. But to get the bank account she needed the DBA certificate….

Developing the actual product was the easy part. Setting up an actual business…that is a whole other monster.

She decided on a business entity, chose the business name and registered the business. My next post will go into detail on how to do each of those tasks.

If you don’t want to wait for the story to unfold, you can also purchase my One Stop Business Startup Kit and get started on your own small business right away. I promise you, this is the most complete start up info you will find anywhere. It takes you step-by-step showing you exactly what to do, how to do it and when to do it. It has a detailed Timeline telling you what to do first, second and so on, right to the launch. I am happy to report that of all the Kits sold, not a single customer has asked for a refund! I am very proud of that!

Because of the current state of the economy here in the U.S. I have decided to reduce the price of the eBook version to $19.99. Don’t put your dreams on hold. SEIZE THE MOMENT!

If you are undecided about what type of business you want to open, then you should do some soul searching (no doubt you’ve done plenty of that already or you wouldn’t be reading this blog).

• What are you passionate about?
• What are you particularly good at?
• Do you have certain strengths that you can take advantage of? 
• Do you prefer to work alone?
• Do you prefer to work with the public?
• Are you especially good with children?
• Are you happier around animals?
• Do you have a talent for home repairs?
• Are you good with computers?
• Do you love interior design?
• Can you become a consultant?
• Do you have monetary limitations that will determine the type of business you can start up?
• Will you be limited to working from home?
• Are you a good salesperson?
• Do you prefer to service needs rather than  provide a product?  

 

Once you have some ideas in mind, start to explore your options. Look through newspaper classifieds and see what types of businesses are available for sale. The different industries will offer you more ideas to consider. Also, looking through franchise sites (see the ad on this page) you will find hundreds of different types of businesses. You don’t need to buy a franchise if that is not what you were planning, but you can get ideas for your own business.

Whatever you decide to do, keep in mind that  you may be working this business 24/7 at the start, so you want to be doing something that you truly enjoy. There is nothing worse than leaving the hum drum 8 - 5 life and jumping into a hum drum 7 - midnight “job”.

Think about your potential customer. Will you be going into an industry where the customer is in a happy state of mind? If your business is in the baby industry, likely the customer will be in a good frame of mind (unless they haven’t slept in days). If you are going into the pay day loan business, your customer is likely down in his luck and miserable. What type of customer do you want to be dealing with 12 - 18 hours a day?

Do your research and choose wisely.