Business Information for Entrepreneurs by an Entrepreneur

Myth # 1: You Will Not Need a Business Plan

If you think that you can start your own business with just a vague business plan in your head, think again. You should have a written business plan explaining all factors of your company such as financing and attaining specific goals in great detail.

A well-documented business plan will chart out the path that you need to follow in order to achieve your business goals. This is a small business startup fact you should remember!

Myth # 2: Advertising Is Only For the Big Players

This small business myth has led to the closure of many small businesses. However, advertising does not necessarily mean spending obscene amounts of money on TV commercials.

You can at least advertise through flyers, sales letters, or by placing advertisements in newspapers or in trade magazines. You cannot increase your business if no one is aware of your business’ existence.

Myth # 3: You Will Become Your Own Master

When you run your own small business, you may have the potential to make more than you would if you were working for someone. It is also quite possible that you will have more time for your friends and family.

However, in the beginning, you will require additional time as you try to set up your business and will also need to put in long hours when you start to expand.

You might be able to attain some flexibility in working hours, but that may only be within a certain limit.

Myth # 4: You Can Convert Your Hobby into a Business

While this myth about business is partly true, it can still be potentially suicidal if you do not conduct proper research into the other aspects of the business.

You will need to arrange for financing, maintain a healthy cash flow, pay off creditors, handle employees and much more if you are to succeed in your business.

A hobby could be a starting point – but it should not be the only point when starting a business.

Myth # 5: You Can Form a Partnership with Close Friends

This myth about business can leave you without both money and friends. Just because you have great friends does not mean that you should enter into a partnership with them.

The small business startup fact is that there has to be the right mix of skills in order to achieve success. Too much money or too little money could cause a fatal crack in the partnership.

You should have all the functions of each partner clearly specified in writing before venturing into a partnership with anyone. Especially your friends.

Myth # 6. You Can Win Customers Just by Lowering Your Prices

Although pricing is very important, equal importance needs to be placed on after-sales-service, politeness and having the right products at the right time.

Your business will not last long if you just lower your prices. By using this tactic, you will not only squeeze your profit margins but land your business in deeper trouble if another business comes along and offers the same products at even lower prices.

Education is another big upside to a recession; as the picture darkens, people begin to wonder why this is happening.

The spike in interest means more markets for those who can explain recessions, and the result is a whole new wealth of material that can benefit anyone with a vested interest in the economy.

Economic resources can also be a great place to look when it comes to strategizing your way through a recession.

The places you can look for business resources that we will describe below are full of information not only on the foundations of a recession, but on ways that you and your business can survive one.

Online

On the Internet, you will find any number of articles, ebooks, and other business resources that can help you understand the economy and how to conduct business in a recession.

One word to the wise, though. Anyone can publish anything they want on the Internet, and it’s not always sound advice.

Check the sites you are reading to see what their “bias” might be. The same print resources that we have relied on for ages when it comes to economic resource material also have websites, so that’s a good place to start.

You should also double check the credentials of any site or writer before taking their advice to heart!

Governmental Organizations

The government has a big interest in making sure America stays busy and business stays American, so it will typically put forth a broad range of economic resources during financially troubled times.

Where can you look for this information, and what exactly will you find? Well, start out with the small business branch office in your town, usually under the auspices of the state government.

If you don’t have such an office, then check with your senator or congressman’s office. They can point you in the right direction in your hunt for economic resources.

What kind of resources can you expect to find? Well, government offices offer plenty of educational advice, but they can also help on the practical end as well.

There are published guides that can help business owners locate grants, loans, and tax cuts that are only available during recessions.

The fact is that there are hundreds of different business resources to take advantage of during a recession.

The trick is knowing where to look, and then understanding how those economic resources can be applied to your own business situation. With the right choice in business resources, you may even thrive during a recession.

A small business website can be a great marketing tool. Developing a website for a small business is not difficult. However, you want to make sure that you do it correctly to reap its maximum benefits.

Here are the steps you should take when creating a website for your business:

1. Business Domain Name
   
   When you pick the name of your website you want it to be a reflection of your business, yet creative and strategic all at the same time. Your business domain name should be something that people can spell and remember.

   Brainstorm possible ideas before you pick a business domain name for your small business website. If you already have a name for your business you may want to consider using your business name for your domain name.

   Once you have a few ideas on tap for your small business domain name, do a little research. Google your domain name to see if anything similar comes up. Additionally, check other companies similar to yours to see what their domain name is.

   If you have found the business domain name you want, make sure you reserve your domain name even if you are not ready to build your website.

2. Hosting
   
   To reserve your business domain name, you will need to find a company to host your domain name for you. There are plenty of options for domain name hosting.

   You can check with your Internet service provider to see if they offer domain name hosting options. Before you select a hosting company for your business website, make sure they offer all the services that you need your site to have.

3. Website Plan
   
   Before you start creating your website you should make a plan for your website. Decide what pages you want and how many pages you will need. Determine what will be on each page.

   Figure out if you are going to have an e-commerce site, and how you will set that up through your hosting company. The most important pages for a small business are the home page and the about us page. Make sure you know what these two pages will entail before you start building your website.

4. Creating your Website
   
   If you are not a tech savvy individual, you will want to either hire someone to create your website or use a program. Many companies have software included in their hosting packages that help walk you through the steps of creating a website.

   You can also buy web design software to create your website, if you feel that you have the skills to do so.

Having a web presence is an important part of small business success. It is very important to make sure that you take your time developing your website so that it looks professional. Follow the outlined steps and do your market research before creating your website.

With careful planning and decision making you can create a small business domain name and website that enhances your business – and increases your profit margin.