What keeps you from starting your own business?

A recent report reveals that the biggest reason entrepreneurs fail to start new businesses is available capital. All the great ideas in the world won't pay for them so the real work begins actually before the real work begins.

As many know, The Corporations Bureau does not support entrepreneurs preparing business plans, in the formal sense, prior to doing business. Business plans, in our corporate culture indeed have their place in the planning process however, business plans were initially intended for obtaining financial backing and resource loans for start ups.

These days however, due to the current economic climate, banks won't even finance an automobile, don't mention a "wonderful business idea". So the onus is on you as the impending small business owner to come up with your resources.

Nationally, new businesses require an estimated $15,000 to get off the ground. What's equally important to note is that those same entrepreneurs are only able to come up with nearly $6,000 which leaves a gaping hole in the start up expectations. Don't let this keep you from starting your business. Take a look at your offerings, your intended clientele and the goals you have set. Then, look at alternative ways to accomplish these goals with a reduced budget.

Easier said than done? well this is when that business plan kicks in to gear. Not a plan for the bank or loan officer, but yet, a plan that will stream-line your business and ideas into a coherent vision of efficiency. Lets not lose sight of the goal we all have when we open our doors; to please our customer and meet their expectations.

They have these expectations in part because we as owners, have set them. How do you do that? Thought you would never ask:

- Invest your time into the social networks,i.e. facebook, twitter, myspace, etc.

- Invest in building relationships that help with word of mouth. This will reduce your dependancy on marketing dollars.

- Go as long as you can without a website (unless your business is web based).

- Maximize your time with ONLY those things that yield results IMMEDIATELY. You will need the instant rush of cash to keep from going into your personal finances so often.

- A firm handshake beats a glossy business card anyday. Although Vista business cards for $5 are also a bargain.

- Don't invest in Letterhead so soon. Emails and direct phone calls improve your chances of success by 200% at no additional cost.

- Develop ways to bring business to you. This will keep you from spending 3days worth of gas to track down one potential customer who asks you all the questions, but ultimately gives their business to the family friend.

Your plan of attack is vital! Know your customer and how you intend to meet their needs before you even introduce yourself. Your finances will grow with you so stop thinking you need to have ALL of it before you can conduct your first day of business. Don't let that keep you from starting your business.

The Corporations Bureau wants to help you get your ideas off the ground without all the excuses. Lets go!

Reducing Cost and Pain

Small businesses get so caught up on our branding and creating a name for ourselves we forget to quantify our success in relation to Cost and Pain. The hard about business is actually doing business. I say all the time, if starting a business was only about purchasing business cards and letterhead, then all of america would be entrepreneurs and small business owners.

There is so much more however. Today, I have a wonderful friend going out to make a dream purchase of his lifetime. He has always wanted a Mercedez Benz E-Class, but more than that, he has always dreamed of walking into the dealership and just flat out paying cash for the entire cost of the car. I will say, there has been a great deal of time spent on researching the automobile purchase as well as all the ins and outs.

We've discussed the Cost of the car. Not in actual dollar value, however moreso in what else will this purchase "do" towards the goals you have put in place? Are there other sacrifices necessary for you to make this deal possible? The thought of making this purchase a full cash purchase is exciting however, can you live for the next 3-6 months if something horrible happened in your life? Are there any other bills in jeopardy of default? That would be "cost".

The Pain of a bad deal is felt for 4-8 months if not years after your decision to act. Pain is not intended to felt as an ache or physical ailment, although your heart may sink everytime you think about it, but instead Pain is the fallout or domino affect that comes after the new car smell is gone.

Do your research and do your best to predetermine what your Cost and Pain will be when you are approached to make challenging decisions. Never agree to pay or provide something you have not yet personally taken possession of yourself. If you have to commit to donating $500 to a major charitable event and you stand to get major press from, but you don't have the $500 yet, well.....don't make that type of committment.

The Cost and Pain of having to fix a broken committment like that will show up in ways that money alone cannot never repair. Your word and work ethic is everything in the world of small business. In every life, a little rain must fall, but do you really care about a flood when you own a boat?

Are You Professionally Insane for Starting A Business?

Well, lets leave that one open for more qualified professionals, however it can be found that more and more we tend to teeter on that very notion. Business and business formation is not intended to drive us all bonkers, yet, at the end of the day, we all seem to grasp tightly right before pulling our hairs out.

It's not suppose to be that way!: Consider for one moment the efforts you are taking to cultivate your small business, product or idea. Are you functioning as efficient as you can to prevent burn-out? How long can you continue as this pace? Is your "outputs" yielding a progressive return?

The formation of your new organization is not at all even mildly crazed, however the way you manage your time and tasks may very well be. What does the make-up of your team, volunteers, supporters, etc, how does that aid you day to day. Business is not insane, the way we conduct business, if not done correctly will drive us over the cliff and into the deep in.

The shortest distance from point A to point B is a straight line. I'm sure you've heard that before. If so, why all the sway? Corporately, we believe "sway" is our flexibility and our willingness to "customize". Not so, sway is creating distance between you and point B; and point B is what you view as success.

Be smart about your day to day steps toward organizational sanity!Start by simply getting incorporated and speaking with professionals to strategize your success. Contact The Corporations Bureau today.