With a tough economy, high unemployment rates many people are looking for other solutions including starting up their own small businesses. Opening your small business is a big decision to say the least. If you are one of the many looking to start your own business here are some tips to keep in mind.
- Be clear on why you want to start a business. Don’t look at opening your own business because you’ve run out of options. If you are truly interested in being your own boss then you be ready for a lot of hard work. The satisfaction and possibilities of financial security are worth the effort to run your own business.
- What type of business will you choose? Be original in your business plans. Choose a business that can fill a nitch that others have not yet done. Use your experience and skills to help you choose a business that best suits you. You want to do something you enjoy and have passion for.
- Business Plan. Don’t get too carried away with doing a detailed business plan. Consider a one-page business plan that covers what you offer, who you will be targeting, how much you will charge for your service, your marketing strategy, financial backing and how you plan to make this happen. Keep it simple to start.
- Target Customer. Know who your target customer is. Your marketing depends on you knowing who to target. Example: if you are making all natural products, like soaps and lotions, don’t target “all people”. Look for markets where women/men are interested in using natural products. Consider local spas, gift shops even health living stores.
- Pricing. This is always the most difficult part for business owners. Finding a price point where they make a profit and still keep it affordable for their customers. Remember not to undervalue your time and talent. Choosing the perfect price might take some adjustment as you become more familiar with your target audience. Pay attention to your demographics. If you are looking only to market locally then make sure the price point is correct for your area. If your overall goal is to market globally, you have a little more wiggle room to play with on pricing.
- Insurance. Many don’t think of the importance of insurance with your first business. It’s very important to have the proper business insurance that will cover your style of business. From a simple General Liability (GL) to Commercial Insurance or Workers’ Compensation if you have employees. Find a local insurance agent that you trust to sit down and discuss your business plans so they can help find the best business insurance for you.
We hope these tips will help you as you plan your new business.
Penny Hanley & Howley Insurance
Protecting YOU is our Job