Quote:
Originally Posted by LeslyVillatoro
any advice on how to start a small business
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Absolutely first and foremost, determine how you're going to market yourself. I'm always amazed at the number of people who start a business, mortgage their house, etc. etc., and never think what it's going to take to actually convince people to buy from them. A good rule of thumb? Find out what typical advertising expenditures of similar companies as a percentage of sale and of gross profit (the SBA will have that info), and DOUBLE that number in your first year.
Second, be sufficiently capitalized. The hardest thing in the world is to bootstrap yourself.
Third, aside from marketing, do not skimp on lawyers and accountants. They'll save your bacon the first couple of years when you make inevitable mistakes.
Fourth, when doing your initial pro forma, take your anticipated sales and cut them in half. Now take your anticipated expenses and double them. Now you have a realistic picture of what you really have to make to succeed.
Fifth, keep all expenses possible down. Don't rent the swank office. Don't spend a bundle on office furniture. Don't buy a company car.
Sixth, keep your objectives simple. I mean childishly simple. Sell one thing and one thing only, whatever it is. Resist the temptation to build additional revenue streams, for clients will be confused about what you're selling.
Seventh, have a clear cut position in the market. Write a 70-80 word positioning statement that expresses what you do, why you do it better, and why this should appeal to your market. This is known as the "elevator pitch," a position that should lay out the advantages of hiring you to any prospect.
Eighth, remember at all times that you are fulfilling a need, not selling services. That means should talk about the customers needs rather than what you want to sell. As long as you do that, you'll have their attention.
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