How do I start a business?

Question

A shopping center just opened in my city

about 3 years ago and I have realized

that there is a demand for an arcade. I

don't have any money and I am only 20

yrs old(still in college). Id like to cash in

on the idea before someone else does, but

i dont know how. I know about loans and

contacting a small business helper. Id

definetly like to open an arcade business

in my shopping center

How do I start, and how do I do it?

thanks

Answer 1

This is a link to an article on the SBA's small business primer

http://www.americasbestcompanies.com/blo...

Answer 2

Before you go any further, I STRONGLY recommend you contact the Small Business Development Center (at your local community college) and talk to them; the counseling is free.  Then sign up for the NxLevel Entrepreneurial program...  it's a 12 session course that walks you through the ins and outs of starting or growing your business, and as part of that you will write a business plan.  At the end of the class your plan will be reviewed by a lending professional, and will be critiqued, telling you the strong points of your plan AND the weak points.  

Then you can work on the weak points and hopefully get it into shape to actually present to a lender and get the loan you need.  There is a cost for the NxLevel program ($375.00 last year at my SBDC), but it’s a lot cheaper than losing your investment.

Even if you hire a professional to write your plan, you should still take the NxLevel course.  It saved me from going into a business that would have failed within a year or so, taking my investment with it.  

Business plans may be (ARE!) a pain in the butt to prepare, but without one, your business is doomed to failure.  To start with, you won't know what your startup costs are going to be, what kind of income to expect, what your ongoing expenses are, who your competition is, and even whether or not you can make a profit.  Without a GOOD business plan, you will not be able to get a business loan to get your business off the ground.

Answer 3

Starting a new business is an exciting thing to do! It is an excellent thing that you identified an opportunity that nobody else has identified yet, that is the way to succedd. The first thing you'll want to do is research start up costs for the business such as renting space in the shopping center/ buying/leasing arcade games, other needed business equipment, employees, insurance, advisors (accountants, lawyers, etc.) and see how long you think it would take you to break even. This is a large step towards determining if your business is viable.

Once you have this information you'll want to write a business plan that discusses your competitive advantages, target market, costs, etc. There are many online resources available to wrtie business plans. Once you have a business plan you can approach investors (friends and family), the Small Business Administration (SBA), or banks. Once you secure capital for your business you can put the wheels in motion to open up your arcade. You'll want to focus on developing a unique brand for your arcade. Joining arcade industry organizations may also be beneficial.

After this occurs you'll want to focus on advertising and marketing your business. Opening up a great arcade is not enough, you have to engage customers in your arcade's brand. You may also want to check out some news articles about branding campaigns by large corporations, which will help illustrate teh direction they are going in, and come up with messaging for your brand.

Answer 4

Start by finding out if there are any incentive programs for young people to start a business, ie: grants, loans

Go to the proper city office and find out about business licenses etc.

Make a list of everything you need and the total cost proposed monetary gains expected, to show to an investor that you are serious.

There is more than just money and need that go into a business, you need to know how to keep books and a whole lot more, so do your home work and then you will be closer to knowing if this is a do-able dream.

Happy Pondering.