Starting a New Business

Last updated on: April 11, 2006 at 6:49 pm by Desh Kapoor

Starting a New Business 2006-04-11T18:49:00-05:00 Desh Kapoor

LOGO Patheos Explore the world's faith through different perspectives on religion and spirituality! Patheos has the views of the prevalent religions and spiritualities of the world.

Starting a new business? Here are some good questions to ask beforehand… The article is with reference to a query on business in NY but it is worth reading…

• What type of business entity will you choose to establish for your business? • How will you be funded? • What will it cost you to operate the company? • How will you set your prices and what kind of profit margin can you expect? • How much capital will you need to operate the company until it begins to show a profit, and how long do you expect that will take? • Who are your potential customers, and how will you reach them to let them know about your products and services? • Who are your competitors, and how can you differentiate your company from theirs? • How can you best design, operate, and promote your Web site? • Who will make your deliveries, and what kind of insurance will you need to cover their presence in your customers’ homes? • How will they make deliveries to clients living in New York’s secure high-rise apartment buildings and condos? • What will be your long-term strategy for growing the company?

Here is some more advice on where to get the various resources:

First, check out some of those entrepreneurial advice books. Browse any general-interest bookstore, and pick out several business startup guides that appeal to you. If you don’t want to purchase them all, check them out of the library, one or two at a time. You can also find information online, from the Small Business Administration and from private organizations that assist entrepreneurs, such as SCORE and MyOwnBusiness.

PLENTY OF FREE HELP. Next, seek out advice from business consultants, professionals, and advisers. This doesn’t have to cost a fortune. Score, a nonprofit business mentoring organization, has a New York office where you can get free advice. The SBA operates Small Business Development Centers around the country that offer free and low-cost workshops, counseling, and seminars.

Robert M. Donnelly, a planning adviser at New York University’s Stern Center for Entrepreneurial Studies, recommends that you take the time to write up a simple business plan — a document that defines your business, identifies your target customers, and includes financial projections and cash-flow schedules. You can purchase business-planning software online, find templates in a startup guidebook, or follow the guidelines provided by the SBA.

"Most entrepreneurs are long on ideas but short on cash," Donnelly says. "That’s why it’s so important for them to be aware of the financial aspects of their business." He also advises that you draw up a detailed marketing plan that gives you a blueprint for how you will spend your precious advertising and marketing dollars to best effect. "Entrepreneurs are great salesmen but not necessarily good marketers," he adds. "Success in business is about marketing."

GET INSURANCE. Gene Fairbrother, a longtime entrepreneurial consultant based in Texas, suggests establishing your business as a corporation or a limited-liability company, rather than as a sole proprietorship, to shield yourself personally from legal liability. "You’re distributing products, and let’s say one of your customers gets a product and their puppy dies or has a bad reaction to it," he says. "If you’re a sole proprietor, you’ll get sued, and you’ll be personally liable."

You’ll need expert advice on which business structure is best suited to you, depending on several factors, according to Fairbrother. Assuming that your delivery staff will be entering private residences to bring customers your products, you’ll need general liability insurance, he adds.

Making your Web site user-friendly and promoting it online are additional considerations. Martin Lehman, a counselor at the New York SCORE office, suggests that you choose a domain name that tells the story of your business, and that you make payment as easy as possible for customers. "Since 95% of online purchases are made via credit card, you’ll need to establish a merchant account," Lehman says. "Check them out, as the charges vary."

KEEP YOUR PROMISES. Other priorities include making sure your site turns up high on search engines and finding ways to drive traffic to your site, establishing a shopping-cart program, refining your product list so you get the best prices from suppliers, and eliminating items that sell poorly. "Establish a good reputation for service, and have a dialogue with your customers," Lehman says, adding that a venue for customers to give feedback "is always a good idea."

Finally, Los Angeles business adviser Frank Stokes, of Stokes Pacifique Associates, recommends that you develop a "damaged goods and returns" policy that will satisfy your customers and confidence give them conidence in your company. "Just make sure you only make promises you can keep," he notes.

Stokes also suggests that you create letterhead and stationery that’s consistent with your Web site and that you use mailing labels for shipping that include your logo or letterhead, or both, to create product awareness and promote company image.

LEARN EVERY DAY. "Starting a business is a wonderful challenge, which may become very rewarding. But also beware of some of the pitfalls of entrepreneurship," he warns. "Failing to plan, taking too much personal income, lack of experience, lack of capital, unrealistic expectations, too much capital going into fixed assets, and not knowing when and where to seek help," are some of the things to watch out for.

Do your homework, seek expert help, and continue to learn about the pet-care industry every day. With a blueprint like that, there’s no way your business will wind up going to the dogs.

Tags: entrepreneur, business

Business

Business Strategy

Careers

Previous Post

April 11, 2006

links for 2006-04-11

Next Post

April 12, 2006 Top 25 India Inc. Brands

Browse Our Archives

Select a Category Aarti Achievement and Leadership AfPak Africa Annual and Year-end Asia Audio Australia Behavioural Sciences Bhagwad Gita Bhagwad Gita Blogging Blogs Business Business Intelligence Business Strategy Cannes Careers Chanakya China Conservation Corruption Creative Daily Links Desh Poems Development & Welfare Devotional Audio Devotional Songs Drama Earth Economics Education Entertainment Environment Europe Everyday Quotes Featured Articles Featured Songs Finance Flickr Pictures Food Geo-Political Global Warming Globalization Health & Medicine Hinduism Historic History Humour India Indian Culture Indian music Indian Weddings Israel Issues Legal Link Love Minorities Misc Motivation and Personal Development Movie Lists Movie Reviews Movies Mumbai terror attacks Natural Disasters Nature News Outsourcing Pakistan Parenting Personal Philosophy Poetry Politics Poverty Quotes Recipe Regular Blog Post Relationships Religion Religious/Spiritual Audio Sciences Showcase Slideshow South Asia Special Stories Spiritual Quotes Spirituality Sports Stories Strategy Technology Technology Terrorism Travel Uncategorized US Video Women Women_s Rights Worship Yoga

Select a Month December 2015 November 2015 October 2015 September 2015 August 2015 June 2015 April 2015 March 2015 February 2015 September 2014 August 2014 January 2014 November 2013 October 2013 September 2013 August 2013 July 2013 June 2013 April 2013 March 2013 February 2013 January 2013 December 2012 November 2012 October 2012 September 2012 August 2012 July 2012 June 2012 May 2012 April 2012 March 2012 February 2012 January 2012 December 2011 November 2011 October 2011 September 2011 August 2011 July 2011 June 2011 May 2011 April 2011 March 2011 February 2011 January 2011 December 2010 November 2010 October 2010 September 2010 August 2010 July 2010 June 2010 May 2010 April 2010 March 2010 February 2010 January 2010 December 2009 November 2009 October 2009 September 2009 August 2009 July 2009 June 2009 May 2009 April 2009 March 2009 February 2009 January 2009 December 2008 November 2008 October 2008 September 2008 August 2008 July 2008 June 2008 May 2008 April 2008 March 2008 February 2008 January 2008 December 2007 November 2007 October 2007 September 2007 August 2007 July 2007 June 2007 May 2007 April 2007 March 2007 February 2007 January 2007 December 2006 November 2006 October 2006 September 2006 August 2006 July 2006 June 2006 May 2006 April 2006 March 2006 February 2006 January 2006 December 2005 November 2005 October 2005 September 2005 August 2005

TAKE THE

Religious Wisdom Quiz

Which book of the Bible is known as the 'Book of Beginnings'?

Select your answer to see how you score.

Genesis Job Psalms Exodus