Ready to Launch Your World into Orbit?

Before you begin, before you even think about starting your own business, give serious consideration to whether you have what it's going to take to take on this endeavor and adventure. It's going to take your full commitment — 100% and more than you think you're currently capable of now. It's going to take all the resources you can afford to put into it. It's going to take a high level of responsibility and discipline. It's going to take blood, and sweat and tears. It's going to take dedication, perseverance, and ingenuity. It's going to take "strength of will" to make it happen.

"We become whatever we are committed to — our commitments define us." ~ Rick Warren

But if it takes all that, it's because the rewards are great, too. With careful research, planning, testing and execution, you can see your lifelong dreams and goals fulfilled.

First Steps :

RESEARCH IT:

1. Take an inventory of yourself — what talents, resources, skills and abilities do you bring to the table right now?
2. Determine a business based on your skills, talents, passions and interest. You are making a huge investment in terms of time and money, so make sure it's something you will truly enjoy.
3. Identify a market need. Develop a competitive advantage that matches your interest, experience, skills and expertise.
4. What type of a business are you considering?
   • Your own business.
   • Franchise
   • Buying an existing business.
   • Partnership
   • Consulting
   • Contracting
5. Research the business and industry you are considering:
   • Is there a need for your product or service?
   • Is there a sufficient market for what you are offering?
   • Who is your customer?
   • How often will they buy your product or service?
   • Ask your potential customers directly what their needs are, what is important to them, what would compel to buy your product or service, and when would they buy it. Draw up a profile of your target market.
   • Where will you find them? How will you reach them? How easy will it be for them to find you?
   • Who is your competition?
   • What are they doing and how are they doing it?
   • How will you differentiate your product or service from your competitors'?
   • Are your potential customers willing to switch brand loyalty to you, or will your idea bring new customers that aren't already buying?
   • What are the costs of goods or services? Take all factors into account: materials, labor, overhead, advertising and promotion, sales and distribution costs.
   • What can you charge for the product or service? What is your profit-margin per item? How much do you need to sell in order to turn a profit?
   • What market data substantiates the answers to the questions above?
   • What market data supports the viability of your business?
   • What resources will you need to launch the business in terms of capital, equipment, office space, supplies, people, expertise, talents, skills, etc.
   • How long will it take you to recoup your investment in these resources? How much will you need to sell?
   • What channels will you need for materials, manufacturing, distributing, etc.?
   • Where will you find your vendors? What comparative pricing needs to be done? What quotes can you obtain now? How reliable are these quotes? What is the fluctuation on pricing?
   • What parts of your business can you effectively outsource, and what will you need to own?
   • What are the legal requirements and licenses needed for this venture?
6. What kind of a team will you need to assemble? What talents, skills, knowledge and expertise will you need to be successful? Where will you find these people?

PLAN IT:

1. Draw up your Business Plan using the research data you've compiled from above:
   • Develop a Company Vision and Mission Statement.
   • State the Business Opportunity you are seizing.
   • Provide an Industry Overview and how your business carves out a niche or picks up lost opportunities, and how you can enter this space. Describe your competition, and how you will differentiate your company and brand.
   • Set clear Business and Financial short-term and long-term Goals.
   • Develop a core set of Operating Values.
   • Describe your Product or Service offerings. How will it be positioned? How will it be branded? How will it be "packaged?" How much will you charge for it? What is your profit margin? How will you differentiate your product or service from the competition? What will be your competitive advantage in this market?
   • Outline your Financial Plan: What financial resources will be required? Do you have the funding, or will you need a plan to raise capital? What is your investment, opportunity, inventory, and risks? Do you have the money to keep the cash-flow going if the revenue is slow to appear? Are you in a position where you can afford to lose this money? What are your strategies for dealing with worst-case scenarios? What are your accounting methodologies and who are the owner(s)? How long will it take to turn a profit? What is the ROI (Return on Investment)?
   • Include an Operating Plan: How will your business be Managed? What will be its Organizational Structure? Who will be responsible for what areas? What resources, talents, and skills will you need to recruit to assemble a winning team? What channels will you employ to distribute your products and services?
   • Use your market data to design a Marketing Plan and strategy. How will promote your products and services? How will you advertise? How will you reach your target market?
   • Exit Strategy: Develop a plan of action for exiting the business. If the worst-case scenarios come true, what will you do? How do you liquidate your assets? What are your mechanisms for closing shop?
   • Provide an Executive Summary — a brief, high-level overview of your business idea outlining all of the above.
2. Assemble your Professional Team: Find and retain your team of professionals — attorney, accountant, banker, and insurance agent that you will need now for advice and consultation as you are proceeding.

TEST IT:

1. Create a "prototype" of your product or service. Make a sample of your product and packaging. Prepare a flyer or advertisement for your product or service.
2. Do your own "man on the street" interviews, asking neighbors, friends, relatives, to give you an honest opinion of your sample product or service.
3. Test market your product or service. Distribute flyers to a tiny segment of your target market, and see what reaction you get. Take advanced orders. Set up a booth at a fair or home show (or any venue that makes sense for your business) and note how many people stop by, purchase your product or service, or what interest is generated. Ask your customers questions:
   • What sold you on this item?
   • What makes you hesitate to buy?
   • What would make it better?
   • What would make it irresistible?
   • What would prompt you tell all your friends about it?
4. Collect data and analyze. Based upon your results, what are the conclusions? What are your next steps? Is it back to the drawing board to a new product? Or does the current product need revision? New packaging? Alternative sales technique or pitch? Different positioning? Wrong target market? Or is the product a winner?
5. From your data, extrapolate the appeal of your product on a broader scale: expected sales based upon your results, demand for your service or product, ability to reach target market segment, and viability for profit.
6. Decide: is it a "go," or "no go?"
7. Note consistent feedback and make revisions to your Business Plan accordingly.

START IT:

1. Name your Business:
   • Choose a name and verify its availability.
   • Research and test the effectiveness of the name.
   • Reserve or register the name with the state.
   • Trademark the name with your state and USPTO.
   • Reserve the domain name for your business website. (These days, every business needs a website presence in order to "exist." Don't discount a web address — it adds to your credibility as a viable business).
2. Choose the Legal Structure for the Business:
• Decide whether it will be a Sole Proprietorship, Partnership, Limited Liability Company, Limited Liability Partnership or Corporation (S or C).
• File the required Organizational documentation.
• Apply for a Federal Employee Identification Number (EIN).
• Apply for a State Sales Tax Number.
• Apply for required Licenses and Permits: city, county, state, federal, professional, and occupational. Order any required Public Notices.
• Open your business bank accounts: checking and money market.
• Establish a business line of credit.
• Obtain a business credit card.
• Open a merchant account to accept credit cards.
• Establish merchant accounts with vendors for purchasing.
3. Protect Intellectual Property: copyrights, trademarks, patents, and legal agreements. Patents are obtained to protect new and useable inventions, machines, processes or improvements.
   • Copyright protects artistic expression, such as a book, article, drawing, movie, song, speech, or written sets of insructions.
   • Trade Secrets include processes, formulas, techniques, designs, and materials that are not public information. Trade Secrets must have economic value, be stamped "confidential," and you must use nondisclosure agreements to ensure protection under the law.
   • Patents prevent others from profiting from your invention, by either using it or selling it. It gives the patent holder a right to litigate against those who infringe upon it.
4. Start implementing your Marketing Plan and prepare your Promotional, Advertising and Sales Materials:
   • Create your logo.
   • Design and order Business Cards.
   • Design and print flyers, catalogs, brochures, etc.
   • Order stationery, envelopes and mailing labels.
   • Create your website.
   • Buy or compile mailing lists, email contact lists, etc.
   • Design and create your advertising.
   • Order promotional items for your business.

SET-UP YOUR BUSINESS:

1. Location, location, location: Determine the type of facility and prime location based upon traffic, convenience and your needs: home-based, rented office space, retail location, warehouse or manufacturing space.
   • Employ the services of a business property broker, discuss your needs in detail, and begin investigating properties.
   • Decide whether to rent or own your business property as part of your long-term strategy.
   • Enter into lease negotiations and obtain terms.
   • Investigate local zoning, facilities, service and sign regulations.
   • Determine needs and timeframe for site preparation: repairs, outfitting for your particular business needs, interior decorating, office layout and equipment, furnishings and display units, inspections, etc.
   • Compare location advantages, disadvantages and terms.
   • Obtain your location.
2. Equipment and Furnishings:
• Order phone, fax and internet service.
• Order office equipment (computers, printers, fax machines, phones, filing cabinets, furniture, etc.) and office supplies.
• Order fixtures, signs and inventory.
• Obtain insurance: rider to home owners, business insurance, liability, medical and dental.
• Purchase the software or solutions you need to run and manage your business.

MANAGING YOUR BUSINESS:

1. Refer to your Business Plan as your Bible. Follow your plan and work your plan. Revise as necessary, making notations, but otherwise use it to keep your business on track.
2. Set a "Grand Opening" date to launch your business. Track all things that need to be in place before you're open for business, to make sure you're on target.
3. Launch your advertising and promotional efforts to coincide with your start date.
4. Draw up and send out press releases to announce your new business.
5. Recruit, interview, hire and train your employees.
6. Set-up your accounting system. Make sure to keep all business expenditures and receipts separate from personal expenses.
7. Join Professional Associations for your industry, community organizations (local Chamber of Commerce, Better Business Bureau, local Business Owner Association).
8. Plan on attending events such as conferences, seminars and tradeshows to promote and showcase your business.
9. Subscribe to industry publications to stay on top of the latest trends, strategies and techniques in your business.
10. File taxes and business documents (obtain a free Small Business Tax Calendar from the IRS): state and federal taxes, quarterly and annual reports, employee withholdings, workman's comp, annual corporation or LLC reports, any name changes, amendments, or change of officers or members, stay current on labor laws.
    

We wish you the best of luck and huge success in your new venture!

RESOURCES:

• Resources - Small Business
• Resources - Sales & Marketing
• Is Self-Employment for You?
• Business Ideas
• Consider purchasing a copy of Business: The Ultimate Resource, as a practical hands-on Business reference covering everything from setting organizational strategy, to calculating net rate of return, to motivating employees.
• Check out The Personal Branding Phenomenon by Peter Montoya as a great all-around Marketing resource.
• Sample Business Plan, useable as a template.

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P.O. Box 270353
Louisville, CO 80027-0353