NFIB

Preliminaries for Starting a Successful Business
04/ 01/ 2002


Becoming your own boss is a dream almost everyone has during their lifetime. Unfortunately, many of those who take the leap and start their own business are not successful. Often the difference between success and failure has nothing to do with the talents of the entrepreneur or the viability of the business. The difference is often a matter of ignoring the basic requirements for success in business. In today's Workshop, Edith Helmich discusses the four elements of a successful business.

Planning ability

Planning ability is not necessarily an innate virtue. Planning ability is based on knowledge. Doing your homework before starting a business is a very ordinary task that is often left unfinished. Taking time to read extensively about the business area, talking at length to other business owners in the same or similar businesses and asking advice from knowledgeable people makes the planning process easy. The more an entrepreneur knows about the new business, the easier it is to eliminate potential problems before they occur. Taking time to become well informed will save time (and maybe the business) in the future.

Sound management practices

Sound management practices include a well thought and written business plan to cover the economic, housing, personnel and inventory requirements. This plan is a working, dynamic document that becomes the road map to move a business from an idea to a profitable enterprise. What, when, where, who and how much it costs must be anticipated and spelled out in the plan. The presence of a detailed business plan is often instrumental in obtaining bank loans for start-up costs or business expansions. Implementation of the plan must rest with people who are responsible for the on-going operations, and who understand the organizational theory of the business plan.

Industry experience

Industry experience is essential to avoid the pitfalls and surprises that the naive entrepreneur encounters. If the new business owner has a good idea but lacks the practical experience, then hiring employees with specialized industry experience is crucial. To reap the full benefit of employee experience, an owner must establish an open atmosphere of employee participation and communication. Likewise, establishing lines of communication with the owners of similar businesses is very important. The key is to listen and make sure that all suggestions, even criticisms, are welcomed and thoughtfully considered.

Technical support

Technical support is cost-effective in the long run. Paying for the expertise or advanced technology that is not available within the company invariably results in better results than trying to make do with inadequate resources. It is particularly important for new businesses to have processes and procedures designed for efficiency and effectiveness. For example, an employment service may screen all applicants with a formal background check before sending them for an interview. Each business has different needs for technical or professional assistance that should not be ignored.

Do you have what it takes to start a new business? The answer is yes, if you don't ignore the basics.

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