NFIB

How to Start a Business
04/ 01/ 2002

One of the toughest parts of launching a small business is getting started. Writing a proposal, financing your plan, choosing a location, staffing, marketing, customer relations...the list of items on your agenda can be daunting. But with NFIB's latest resources just clicks away, you can become a business pro in no time.

The Web is filled with ways to help you develop your idea from a simple concept into a successful, new business. But if you're like us, you may have a hard time navigating through all those sites. To help you out, we've asked NFIB.com contributor Bob Graham to survey a number of Web services that can assist you in gathering the facts -- and even the inspiration -- you may need.

To read more about how you can start on the road to entrepreneurial success, check out the information below.

WRITING A BUSINESS PLAN
It's probably fitting that one of the most difficult parts of starting a business comes at the beginning: writing a business plan. For most people, writing a business plan encompasses two daunting tasks. The first is writing itself, something most people haven't done since high school or college. Second, and more importantly, writing a business plan requires a comprehensive understanding of what it is you are proposing to create.

Whether the business plan encompasses one or 100 pages, there is no room for sugarcoating, vagueness or ambiguity. Bankers, potential investors and others will probably heavily analyze your words. These professionals can "make or break" your proposal, and they are looking for clarity of thought as well as careful planning.

Want more information? To access more information on preparing a winning business plan, check out articles listed in "Starting a Business," in the Business Toolbox. This can be found in the Tools & Tips section.

FINANCING A BUSINESS
There can be no business if there is no financing. Without the bucks, even the best of ideas lies in waiting for someone who can find the money. In the past, obtaining access to sources for loans, their requirements and the forms necessary to apply for financing was difficult without spending hours in the library or finding a lending specialist.

Now, scores of grants, dozens of specialized programs and hundreds of lending institutions have sites on the Internet, where everything from application requirements to changing interest rates are available for your review, 24 hours a day.

One obvious option often goes unused. About 95% of small businesses and home-based businesses qualify for Small Business Administration loans, according to the SBA. However, people starting businesses often fail to take advantage of such loans because of the paperwork required or because they never heard about them.

Want more information?
CHOOSING A LOCATION
The old real estate adage, "Location, location, location," holds especially true for people preparing to start a new business. Selecting a site that's too close to competitors could cripple business, while opening your doors to a new venture in a place removed from people and traffic could have the same result.

Placing your business in the right location can also be a challenge when seeking qualified employees to do the work and customers with the appropriate income levels for what you're selling or manufacturing. And fortunately, the Internet's variety of online resources can help narrow your search.

Want more information? To access more on how to choose a business location, check out articles listed in "Managing Your Office," in the Business Toolbox. This can be found in the Tools & Tips section.



BUSINESS STAFFING
The right staffing is key to running a successful business. However, finding -- and hiring -- the right employees is often one of the toughest challenges you'll face as a new or growing business owner.

When done properly, hiring can prove to be a seamless improvement to the work environment. Employees who share philosophies and goals can move your business forward and on to new heights. But when things are done incorrectly, hiring can have a devastating effect on the workplace, the climate of a business and its future.

Fortunately, online resources provide many avenues for recruitment, hiring, interviewing and other areas, including the acquisition of temporary employees. If you type into any search engine the words "recruiting," "recruitment," "hiring" or "employees," you can locate various resources that are frequently updated in your area. Initial contact can often be made online, with follow-up done by telephone, fax or in-person. Online resources also provide a good array of pricing, which can enable a business owner to evaluate what costs will be incurred if a hiring move is made.

Want more information? To access more on how to staff your business, check out articles listed in "Staffing/HR," in the Business Toolbox. This can be found in the Tools & Tips section.

PUBLICITY, PUBLIC RELATIONS AND MARKETING
The squeaky wheel gets the grease. And in the business world that means generating some publicity for your business -- to get the "grease" that customers create. Although it may seem easy, getting publicity or marketing ideas, services and goods takes skill, finesse and luck.

A big challenge, particularly to those seeking free publicity, is to create the perfect media marketing plan, implement it and then pray that the press covers it. There's only so much news that can fit in a paper, be placed on TV or on the radio. And there are only so many people who can cover the news. That means, your best plans can often be foiled by circumstances beyond your control. Don't be surprised if a perfect plan meets with failure. It's hit or miss when you're looking for free publicity.

When you're paying for advertisements, the same can also happen. What you or your team think will generate interest in your service or goods might not work because it's too edgy, too trendy, too hard to explain or difficult for people to find money for. Remember New Coke? To quote that great historian of our time, Forrest Gump, "And that's all there is to say about that."

Finally, many businesses have failed to generate business because they were unwilling to spend on promotion. Although it costs money, advertising can generate profits like nothing else. Don't jump with both feet, though. It's better to start slow and build up, see what works and assess why. You can always add money to advertising and promotion, but it's hard to take it away.

Want more information?To access more on how to generate paid or free advertising, check out articles listed in "Finance and Capital," in the Business Toolbox. This can be found in the Tools & Tips section.

PUBLICITY, PUBLIC RELATIONS AND MARKETING
The squeaky wheel gets the grease. And in the business world that means generating some publicity for your business -- to get the "grease" that customers create. Although it may seem easy, getting publicity or marketing ideas, services and goods takes skill, finesse and luck.

A big challenge, particularly to those seeking free publicity, is to create the perfect media marketing plan, implement it and then pray that the press covers it. There's only so much news that can fit in a paper, be placed on TV or on the radio. And there are only so many people who can cover the news. That means, your best plans can often be foiled by circumstances beyond your control. Don't be surprised if a perfect plan meets with failure. It's hit or miss when you're looking for free publicity.

When you're paying for advertisements, the same can also happen. What you or your team think will generate interest in your service or goods might not work because it's too edgy, too trendy, too hard to explain or difficult for people to find money for. Remember New Coke? To quote that great historian of our time, Forrest Gump, "And that's all there is to say about that."

Finally, many businesses have failed to generate business because they were unwilling to spend on promotion. Although it costs money, advertising can generate profits like nothing else. Don't jump with both feet, though. It's better to start slow and build up, see what works and assess why. You can always add money to advertising and promotion, but it's hard to take it away.

Want more information? To access more on how to generate paid or free advertising, check out articles listed in "Marketing and Sales," in the Business Toolbox. This can be found in the Tools & Tips section.

CUSTOMER RELATIONS
Success in business means serving your customers. Whether you make widgets or serve fruit juices, the people buying your goods have to remain in the forefront of your business mind at all times. Without them, you're swimming in widgets or guava juice.

First impressions are lasting impressions. And a good experience with a business is often dictated by how the employees treat the customers. Are they respectful, polite, understanding, interested, professional, well groomed, fair and honest? If so, the odds are excellent that a customer will return. In fact, they may even "spread the word" about your business to new prospects who might need what you have to offer. That word-of-mouth advertising is the best you can find.

But by the same token, failing to properly serve customers can cripple a business. Surveys show that people are likely to tell twice as many people of a bad business experience as a good one. And seven in 10 people who fail to return to a business, blame it solely on the service. This means that only 30 percent of the people who never return to your business decide to go elsewhere because of the price, location, parking, hours of operation, product lines and other reasons.

Want more information? To access more on how to make customers your first priority in building a business, check out Public Relations articles listed in "Marketing and Sales," in the Business Toolbox. This can be found in the Tools & Tips section.

MERCHANT-TO-MERCHANT RELATIONSHIPS Once you get your feet into the water of a business, you will soon realize how much you must rely on other people or companies for supplies, advice, counsel and motivation. These people provide lifelines to sanity and reality, while helping you to steer clear of the icebergs in the way of your success.

The best way to find these people is through word-of-mouth. If you need an accountant, ask other business people you know who they use, why, how much he or she charges and if you can have their telephone number. The same goes for just about all specialty services for businesses.

If you want to use the Internet for your search for legal, tax or other help, just type in the appropriate words in any search engine and see what comes up. But beware. Just because a company says it can provide something in its words on a home page doesn't mean it can deliver the goods or services when you call.

Want more information? To access more on how to grow relationships with merchants, check out articles in the Business Toolbox. This can be found in the Tools & Tips section.

BUSINESS TRENDS
Keeping current with what's going on in your business and others that might affect you is a tedious and time-consuming process, but one that is essential for a business to continue to thrive. Keeping your head in the sand offers no long-term possibility of success.

Until recently, the type of information about trends that business owners needed had to be gathered with great effort from reading the Wall Street Journal, Business Week, Forbes, attending the local Chamber of Commerce meeting, chatting with colleagues at the local watering hole and spying on your in-town competitors.

Fortunately, the Internet offers some of the best tools for keeping current with trends and fads. People share many ideas and concepts online, especially via bulletin boards and listservers. There are virtually a million ways to stay current, from typing in a keyword describing your business to joining chat rooms that deal with your interests or career goals.

Want more information? To access more on the latest business trends, check out Public Relations articles listed in "News, Knowledge & Development," in the Business Toolbox. This can be found in the Tools & Tips section.

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