Running your own business is a stressful but good career and life choice. It demands your time and focus. Start by expecting to live at your work, until it is established so you can get off the ground. There are many different opinions about how to start a business. Read below for some basic ideas and guidelines you can follow to get you started.
Part 1 of 7: Have An Idea
Patent your idea or invention before your meet with a manufacturer and patent the aluminum or steel mold or diecast that was used to create your invention as well.
1 - Come up with an idea. You will need an idea for a business before you do anything else. This should be something you are passionate about, since your new business will consume a great deal of your time and money. •Come up with business ideas by identifying things people need and are willing to pay for, that isn’t provided in your area, or which you can provide better than anyone else.
2 - Consider if it is possible. Before going too far, think about how plausible your idea is. Is it something that people would actually pay for? Will it turn enough of a profit to be worth spending your time to do it? You will also need to be sure that it is possible to put into action. While it would be great to have a computer which makes food magically appear out of thin air, this is simply impossible (unless you’re Patrick Stewart.)
3 - Be sure it’s unique. Whatever your idea is, be sure it’s as unique as possible. This will help you eliminate or significantly combat competition, which will make your business more successful. Simply putting a small spin on a currently existing product (making blue Red vines or something like that) is not usually enough to build a business on, so push the envelope!
Part 2 of 7: Make A Business Plan
1 - Determine your cost of operation. You will need a solid business plan to present to any investors and the best place to start would be with determining your basic cost of operations. This will outline and help you determine how much money is needed to produce the product or offer the service you intend to offer or produce. It includes production costs, shipping, taxes, worker’s wages, rent for workspace, etc. •Knowing your cost of operations will be vital to determining if your business will be profitable, since you will need to make more than this baseline in order to remain in business.
2 - Determine your potential market. Be realistic. How many people will realistically use your business? How much will they pay to use your services? If either number is too small in comparison to how much it will cost you to stay in business, then you should reconsider or change your plans.
3 - Determine impediments. You will need to plan ahead for all of the problems which can get in the way of running a business. •Evaluate your competition; if their market share or product offering is too strong and stable, then you will have a very hard time breaking into the market. No one will want to buy an equally priced or more expensive version of a perfectly good product or service which already exists.
•You will also need to explore the associated regulations and laws, especially regarding taxes. You should ask your local state authorities, as well getting information from the IRS.
•Make sure there are no prohibitive costs, such as equipment which is too expensive to make the business profitable. For example, cars didn’t take off until Ford figured out how to make them cheap by building more efficient equipment.
Part 3 of 7: Make A Marketing Plan
1 - Write up a budget. Once you have a general idea of how much money you have to work with, write up a budget for marketing which indicates how much money you have available to spend on advertising.
2 - Create ideas fitting your budget. Once you know how much money you have, research the costs of different types of marketing and come up with ideas which fit those methods and are effective for the price range. If you have a lot of money to spend on marketing, for example, you can consider shooting a commercial. If you have almost none, you’ll want to think about ways to use social media effectively, which is very effective for requiring little money.
3 - Plan timing and location of marketing. Once you know what kind of marketing you intend to do, think about the most effective places to advertise and what time of day, month or year are going to work best to reach your target market. •You will want to be sure that you are using marketing which is appropriate to the type of people you expect to be interested in your product or services. There is little point in using social media to, for example, advertise a 55+ only cruise line. Meanwhile, if you’re advertising for your new dance club, a printed newspaper is probably not going to be your best bet. There is also no point in advertising a business only available in Chicago to people in Seattle, so consider physical location as well.
•If your services are seasonal you will want to consider what the best time of year would be to advertise. Also, television advertisements will need to be timed so that the right demographics will be watching when they air.
Part 4 of 7: Get Financing
1 - Talk with your bank. Talk with a bank with whom you already have a positive relationship. Ask about what kind of business start-up loans they offer and how they can benefit your business. By using a bank you already know, the bank will have easy access to your financial records and will be more confident in investing with you.
2- Get local investors. If the bank loans will not be enough, look into local investors. There may be a local business tycoon or other similarly wealthy person who would have a vested interest in seeing you succeed. Research people in your area who may have the funds and motivation to help you.
3 - Seek venture capitalists or angel investors. Angels are high net worth individuals and venture capitalists are companies. Both fund a promising high risk venture for a stake (partnership) and often bring experience, management expertise and contacts to the table. They usually work through a network or association.
4 - Approach friends and relatives. People who know you for a long time are most likely to have faith in your ability and intentions. These are also the people who are likely to stand by you if the going gets tough in the initial stages of your venture or you need to raise more money. However, make it clear the money is intended as risk capital and they might lose it completely or may not be returned in the short term.
****Borrowing money from a family member, friend, angel investor, venture capitalist means you will have to make a promissory note which states the amount of the loan, like a mortgage, stating the interest rate and the method of repayment of the loan. It is a legal document and it is recommended to be notarized by a notary public. There are secured and unsecured type loans. See above the pdf and word document of the types of secured and unsecured loans****
5 - Use crowd-funding. If you still can’t drum up enough funding, use websites to raise the money you need to start. These funding sources have several benefits: you will not have to pay interest on the money you get (since it is money which is used to provide actual product or services) and it will help you not only gauge interest in what you have to offer but also help you build a customer base. You’ll start business with hundreds or thousands of customers already lined up and ready to tell other people about what you have to offer.
6 - Report. No matter which source you raise funds from, be sure to provide key operating, strategic and accounting information to your financiers periodically, usually twice a year. It's a good idea to hold a board meeting if everyone can physically attend. If not, do it via teleconference.
Part 5 of 7: Build Infrastructure
Contact me if looking to lease commercial space or buy a mixed use building in Chicago or West Suburbs
VIctor Lopez Broker Associate 630-660-1292 HP Realty, Inc.
1 - Get an office. You will need a space from which to run your business. This can be a home office if you require little space and will not have employees, or it can require an entire workshop or warehouse. Look at renting in a low cost neighborhood or business incubators instead of a fancy address. Some universities make space available at a low rent for new business ventures based on an innovative scientific idea. It depends on what you will be doing and how big you intend your business to be. Make sure the space is coded and legal for how you intend to use it and within your budget.
2 - Purchase equipment. Purchase all of the things you need to start work. This can mean mechanical equipment, computers, telephone, or craft supplies. It all depends on what you are doing. Try to purchase from business supply companies as they will have significant discounts. If you are short of capital, lease or rent is an attractive option too, so as not to block your funds.
3 - Create a records system. From doing taxes to figuring out why you’re mysteriously missing $2,000 to searching through customer records to find out if Mrs. Jones did in fact pay her bill, you’re going to want a good records system to help your business run smoothly and efficiently. Invest in file cabinets, labels and digital records software to keep you organized and on top of things.
Get your business licenses and certifications:
For Realtors who want to open their own office, you will need:
1) Brokerage license
2) DBA cyberdriveillinois.com
3) Business Insurance
4) Sponsoring Broker License
5) EIN Number irs.gov
6) Must have Managing broker license
In addition to getting your licenses and certifications, you have to buy office supplies and equipment, computers, security cameras and security service (Like ADT), office chairs and furniture (With hidden lockable laptop compartment tables, like T-Mobile stores have), plants and pictures, light fixtures, hire weekly or monthly office cleaning crew, janitorial supplies, utility service, have office handicap bathroom, a break room with break room, coffee, refreshment supplies, conference room with projector, staff and client parking spots, office signage expenses, office staff license display, office listing display cases, open business bank accounts for business checks, office phone landline, cell phone and fax lines, payroll tracking software like quicken, continuing education, staff hiring, staff training, deal with staff drama and issues, try to streamline office training by using office youtube video channel or microsoft powerpoint presentations - new recruit staff training takes a lot of downtime, videos get new recruits oriented quicker), continuing education, networking, marketing flyers, postcards, business cards, business website lead generator, office website, real estate marketing and advertising services, a car (can be used as a business expense when used for advertising your business name), lawyer, accountant, insurance agent, office secretary, business card and business signage supplier, yard sign supplier and installer, maintenance person, pest maintenance person, storefront window cleaner, alderman or city contact, conduct first time homebuyer seminars, etc.
7) Hiring Staff for your Real Estate Office
Once you have an office established, you’re going to have to hire newly licensed, temporarily licensed or experienced lease agents and real estate brokers, if you want your office to succeed. Ongoing training always helps the new and experienced brokers. Some agents need help and some agents are fine on their own. Hiring new staff is a challenging responsibility, and the managing and sponsoring broker should always appreciate and nurture their new members. The new and existing staff members are directly and indirectly responsible for the success of the branch office. There are many specialties in real estate for agents whether the realtor wants to be a buyer agent, selling agent, leasing agent, REO broker, property management broker, commercial real estate broker, luxury sales agent, real estate investor, real estate developer, BPO broker or a managing broker. Some Realtors who are really good need to create Team within the office. A Broker whose a Team Leader whose the ringer (like the best baseball player at bat, a talented realtor who brings in so much buyer, seller and renter leads that he or she needs a team to help him or her out) and trains the supporting team members. Many agents come from all walks of life. From walk ins, career changers, broker office transfer agents, right out of high school or college, real estate investors and so on. So there are many ways to recruit new coworkers for your office. Below is a list ways of hiring new staff members,
6)Referrals – Friends, Family, coworkers, neighbors, etc. 7)Block parties, festivals, holiday events, fairs, any event with lots of people – good for finding new recruits, buyers and sellers. 8)Email agents of other competing offices (I noticed a lot of Agents do this) 12)Office walk ins from office window sign - “Agent for Hire” and office website 13)Real estate Expo and seminars - 14)Office mailed out flyers, postcards, door hangers, guerilla marketing 15)Business contacts like from renters, homebuyers, homesellers, mortgage lenders, etc. 16)Social Media – Facebook, Twitter, Instagram, Youtube, Pinterest, Blog, TV, newspaper, magazines 17)Meetup.com, Alignable.com, Foursquare.com 19)Careerbuilder.com –
20) Real Estate Schools
Recruiting coworkers can be expensive hiring process but it’s worth it to promote the office team and the office name. To stand out, you must brand your office and business name. Give a reason why your clients should chose your office to do business with rather than do business with another real estate company.
For Chicago Restaurant Owners you will need:
1) 2 Business Licenses
2) DBA cyberdriveillinois.com
3) Business Insurance
4) 1 Purchasing License
5) EIN Number irs.gov
6) Accountant, Lawyer, Insurance Agent
7) Business Insurance and BYOB insurance
8) 2 Sanitation Licenses
9) POS System - Clover, Square, Silverware
10) Employee Punch Clock System
11) Security Cameras, Computer Supplies
12) Groupon, Living Social, Grubhub account
13) Restaurant Depot Account, GFS Foods Account, Sysco Account
14) Alderman or City Contact
15) Awning and signage display supplier and installer
16) If serving liquor you will need a liquor license
17) Fume Hood Ansol Certification City Inspection
18) Pest Control Service - City of Chicago Licensed Pest Control Log, spray every 2 months, night purple light for checking kitchen with lights off,
19) Employee Food Handling Certification
20) Staff Uniforms
21) Dining Room Furniture, Dishes, Silverware, candles - Chairs, Tables, Light Fixtures, Glasses, paper cups, mugs
22) Janitorial Supplies and closet
23) Food Service Equipment, prep tables, Refreshment and dessert coolers
24) Men and Women handicap bathrooms
25) Staff Training, front of house and back of house, restaurant manager
26) Maintenance person
Chicago License Requirements for Restaurants:
State of Illinois Business License Requirements for Restaurants:
Part 6 of 7: Build a Customer Base
1 - Make use of marketing and PR. You will want to reach out to potential customers in ways that make them want to use your business. This is especially important when you are first starting, before you have an established, regular customer base. •Advertise in a way that catches customers attention at a minimum and hopefully goes beyond to capture their imagination. Be creative and appeal to the right aspects of the customers you want to use your business.
•Offer free samples of what you do to the right people, in order to get people saying good things about what you have to offer. Word of mouth (i.e. good PR) is the best way to attract new customers. If you get bad reviews or negative feedback, respond positively and fix the problem. People will be much less judgmental about mistakes if you’re willing to fix them.
2 - Use a little old fashioned networking. Go to conferences, charity galas, meetings with complementary businesses and anywhere where your customers are likely to be highly concentrated. In other words: get out in public and interact with people. Use your friends connections to meet people who may be able to help you. This kind of interaction is very important for starting a business. You can’t exist in a vacuum after all.
3 - Have great customer service skills. Be good at interacting with people. Practice reading between the lines of what people say. Learn how to meet needs they didn’t know they had. Figure out how to make people happy. Be charming. Most importantly, be humble. The customer may not always be right but you need to be able to let them think they are.
4 - Have a website. The world has moved online. Any business that wants to survive the next ten years is going to have to have a website. People will use it to contact you, find your location, learn your operating hours, ask you questions, make suggestions, and maybe even buy your products or services. In having a website and services which are available over the internet, you will be able to expand your service area out across your region or even the world.
Part 7 of 7: Get Paid
1 - Require payment. Don’t let people take advantage of you. Require payment within a specific window of time (whatever is appropriate for what you do). Invoice people as soon as you possibly can. If someone is late in a payment, talk to them. If you ignore these problems hoping that they go away, you will find yourself working for free and your business in the tank.
2 - Take credit cards. Very few people consistently pay for products or services with cash any more. It will be much easier for your business, as well as records keeping and accounting, if you accept credit and debit cards. If you want to save yourself ridiculous fees or keep your business more mobile, consider using the Square. This device plugs into a smartphone or tablet and lets you swipe customer’s card.
3 - Set up an online system. If you plan to have products for sale online you will need to make sure to set up an accord online payment system. Services like Paypal make this incredibly easy. Research to find out which method is best for you. However, make sure that whatever system you use is secure. You don’t want either your information or your customer’s information to be hacked or taken advantage of.
•Make sure your product / service is appealing for the public, area and community not just in your perspective if not how can you make it more appealing? Be sensible.
•Ask people you know that run a home based business. They could help you get started.
•Make sure your business looks professional and is attractive to the eye. Have a professional logo, branding that is consistent and a professional website to support it. There are several groups that will help you with all this, for example. https://www.sba.gov/content/follow-these-steps-starting-business and vistaprint.com
•Recognize that getting your business off the ground will take time. Most businesses don't become profitable right away, so plan for that in your personal life too. You will be making sacrifices to be your own boss.
•Use free resources. Your local library contains numerous useful references regarding incorporation, writing business plans, marketing, as well as information specific to your industry. The Small Business Association, Chambers of Commerce, AMEX Small Business website, associations for your industry, associations by ethnicity...all of these offer training, materials, networking and sometimes financing. Another good option is SCORE, a group of retired executives who provide business start-up advice.
•When hiring, make sure you have an in depth review and interview of the worker. Make sure you get their real information, passports, id , former work, license and many others that they are truly honest and they are dependable.
•Make paying convenient and affordable. Accept credit cards, offer monthly payment plans, promote product with buy one get one free offers or sale prices.
•When coming up with a name, slogan, service etc. ask people's opinions on it.
•Ask your parents for help.
•Ask your friends, relatives, and colleagues and plan something with help of your good wishers and supporters.
•Beware an overly friendly shareholder. They may pull some tricks on you. Business requires your resources which you have to give passionately and wholeheartedly.....Avoid procrastination, most wonderful ideas die as a result of this. once you have your mind set on something, go for it, make research and talk to professionals in that field about it even if it takes time for you to schedule appointment.
•Be sure to carve out time for yourself. Make sure you stick with an exercise program or build in time to see your family.