How to Open a Small Business￼
Opening your own small business is a lofty goal. However, it’s one that requires a lot of both personal and financial investment to get off the ground. Fortunately, it’s not too hard to open a business these days. But you do need to be diligent on how you go about this. In this article, we’ll go over how to open a small business and what you can do to keep it running.
Pursue Your Bachelor’s Degree
Running a business, regardless of its size, can be really difficult for people who are doing it for the first time. In fact, you’d be surprised at how many businesses fail because the owners didn’t have the proper knowledge or experience. Before you start the process of opening your business, it’s best you aim toward getting a BA in business management and administration. The average cost of a Bachelor’s Degree in Business Management and Administration costs around $35,000, but it can go up to as much as $75,000. And if you aim to acquire your master’s degree, it can cost more than $150,000. You can pay for both degrees by taking out a student loan. You can use a student loan to cover the tuition costs, purchase any necessary supplies, and textbooks. If the need arises, you can also use it to buy a new computer if you plan on going to college online.
Decide On Your Niche
There are so many things to consider and as you go through your college program, you have the perfect opportunity to plan everything out ahead of time. The first, and most important for that matter, is deciding on the niche your business will cater to. It’s not uncommon for new business owners to be a little stumped with this decision as there are many niches available. Since you’re new, it’s best if you choose a niche that has a wide and diverse audience, like food and pets.
Start Making Your Business Plan
A business plan is what basically goes over the goals of your small company and it’s going to achieve them. Below is what needs to be included in every plan:
- Basic summary
- Description of what your business is all about
- Solid financial plan
- Comprehensive list that goes over the products and services you’ll be selling
- Your marketing plan
- How you’re going to organize and manage everything
- List of all the short-term and long-term goals you aim to achieve
This step could take a while, so be sure to spend as much time as possible getting everything in order. Your plan is what will ultimately help guide and remind you of why you opened your small business.
Choose a Business Structure
A business structure is basically what dictates who owns the company, how taxes are handled and who’s responsible for liability claims. You need to pick one before you can open your doors to the public. There are a total of four structures to choose from: sole proprietorship, partnership, corporation and limited liability company (LLC). It’s always recommended for newcomers to become an LLC as they’re far easier to manage.