Facts About Starting a Small Business

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U.S. Small Business Administration (SBA)

Starting and managing a business takes motivation, desire and talent. It also takes research and planning. Lack of planning is one of the leading causes of business failures. Developing a business plan will walk you through the questions that every prospective or new business owner should answer. Before you start your plan, carefully research and answer these basic questions:

What niche will my business fill?
What services or products will I sell?
Is my idea practical, and will it fill a need?
Who is my competition?
What is my business's advantage over existing firms?
Can I deliver a better quality service?
Can I create a demand for my business?

Once you've determined that your idea is feasible, answer these questions:

What skills and experience do I bring to the business?
What will be my legal structure?
How will my company's business records be maintained?
What insurance coverage will I need?
What equipment or supplies will I need?
How will I compensate myself?
What are my resources?
What financing will I need?
Where will my business be located?
What will I name my business?

If you are starting a home-based business, you will want to answer these additional questions:

Does my home have the space (preferably separate) for a business?
Can I successfully run the business from my home?
Can I deal with the isolation of working from home?

Your answers to these questions will help you create a focused, well-researched business plan that should serve as a blueprint. The plan should detail how the business will be operated, managed and capitalized.

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