Wednesday, September 28, 2011

2011-09-28 Wednesday - Starting a Small Business, Part-1

A friend recently asked me for advice on starting a small business (a small retail shop)
 
This is the initial guidance I offered...
 
 Step-0: Initialize

 Register to obtain a business tax id with the IRS

Starting a Business

 Step-1: Legitimize


Register a Doing-Business-As (DBA) with your the State's Department of Commerce

 Step-2: Publicize
 
Setup a web site

you can create a very nice looking (and free) web site via
http:sites.google.com

you can also create a free gmail account

Alternatively you could pay for a domain name - and get an email account setup with your domain name.  Yahoo hosting and professional email are what I use - about $12.95/month for the hosting, and $19.95 for the professional email service.

 
 Step-3: Electrify

Register with one or more Crowdsourcing Fund Raising Services: A few possibilities:

http://www.kickstarter.com/
 
http://33needs.com/

https://www.profounder.com/
 
https://www.microplace.com/

http://www.dreambank.org/

http://www.advertactivist.com/

 Step-4: Internalize

 
Schedule an appoint with a SCORE counselor
http://www.score.org/ 
 
There are many aspects to running a business - SCORE counselor's can help provide much needed wisdom. 
 
 
 Step-5: Monetize

Setup Bank Accounts

- look for a bank that offers a no fee checking account 
https://www.usaa.com/inet/pages/no_fee_checking_main 
 
Other possibilities include local credit unions 

 
- there's a good argument for setting up a business checking account....

- as soon as you have the account, ask them about setting-up a line of credit - or - obtaining a business credit card.  This will allow you to start building the credit history for your company tax id. 
 
 
http://www.inc.com/financing-a-small-business
 
 
Inc.com article: An Easier Way to Apply for Loans 
[see: http://www.boefly.com/]
 
 
 Step-6: Stabilize
 
Identify merchandise supply channels:
- http://www.craigslist.org
- http://www.ebay.com
- local thrift shops

Identify some low-cost high-margin mark-up items to sell in your own shop... 
 
 
 Step-7: Energize
 
Setup Referral Revenue Streams

Identify other merchants with whom you can create referral agreements

For example, someone comes into your shop and needs some help painting their house, fixing a plumbing problem, etc.  You should have already established relationships with a list of merchants and service providers (who would be willing to pay you a referral fee)
 
Create a Facebook page for your business
 
Create a LinkedIn profile for yourself [search out the various LinkedIn groups that may be aligned with your business interests]
 
Find or create a local meetup.com group that is focused on your business interests (collecting antiques? trading merchandize? etc) 
 
 Step-8: Quantify
 
Assess Your Market

visit other consignment shops
visit thrift shops
visit auctions and flea markets

ask questions

find out what products sell fastest
find out what sells slowest
find out what has the best mark-up / margins
find out what can go wrong with your business model


 Step-9: Organize
 
Setup a Customer Relationship Management service account

Once you actually have sales, You can probably use  something like
SalesForce.com or SugarCRM.com to manage email marketing campaigns and
managing customer contact info

https://www.sugarcrm.com/sugarshop/product/professional

http://www.salesforce.com/crm/editions-pricing.jsp?d=70130000000s0AL&internal=true
 
If you don't already have Microsoft Office, you can download the free Open Source Open Office suite of tools
 
If you need a good email client, Mozilla Thunderbird is an excellent choice. 


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