My sister and I are thinking of starting our own business. What are the first steps to doing that?

Question

Can someone please give me a run down of steps in starting your own buisness? What are some things to expect as well? What are some hurdles you have come across starting your own buisness and how did you handle them? How good of credit do you need to have to start if applicable? How hard was it for you to get started? Did your business take off or shut you down as fast as you opened? We are interested in a opening a retail type store. Thanks for all your feedback!

Answer 1

get a book at your library on writing business plans. This will help you to take a look at all aspects of your business before embarking. It's fun to think about, but is it feasible to do.

You need a lot of cash on hand, or the ability to attract somene to invest in your company. They will want to see you business plan before they do (even if it is family.)

Make sure you look at insurance costs,cost of leasing a place, attorneys to review documents, Labor costs, advertising, etc

Answer 2

Before any business can make money, you need to decide on a product that can be made cheap but can sell for a profit. So, step one is to think of a product that you can make and sell with ease.

Good luck!

Answer 3

There are different types of businesses to start.  A traditional store front business, or a home based businesses.  A traditional business will cost a lot of money to start.  You will have a lot of over head to cover each month.  The amount of money it will cost you will depend on how much your lease or renting a space will be, how much the product is giong to be to buy, unless you can get them on consignment, business loans and paying them back with a percentage over etc.  You'll need to have good credit to get the loan for this.  Getting a business loan is harder then getting a home loan.

Your other option to starting a business is a home based business.  You have the same income opportunity as a traditional business without all the over head expenses.  Almost everything in your home that you use daily like your phone, computer, electricty, gas and car expenses are tax write off's.  Home based business cost a fraction of the cost as a traditional business.  Most home based businesses cost under $500.  So you really don't need a loan and it doesn't matter what your credit is like.

I created a blog on my 360 yahoo page on home based business opportunities.  Over half a dozen different ones to chose from in different industries.  The blog will answer a lot of these questions your asking as well as give you a lot of information on home based businesses.

http://blog.360.yahoo.com/blog-eqfAfFMlc...

If you have any questions, feel free to contact me at [e-mail]

Answer 4

first step:  are you ready to sacrifice your time/life to do it?

Answer 5

Visit the business department of your local bank.  They had advisers that can help you determine some of the hurdles of a new business.  They will also help you with credit and setting up business accounts.