How to start a successful business

Most people dream of starting their own business.  Turning that dream into reality can seem so overwhelming that for many it remains only a dream.  For those who are brave enough to take the leap, it can pay off big time.  There is so much to gain.  You gain the freedom to have true control over this major part of your life.  You can save serious money through tax write-offs.  The fulfillment that you feel is unparalleled. 

Make no mistake; having your own business takes tremendous patience, perseverance, unwavering determination, and good old-fashioned hard work.  It can be very stressful at times.  It is absolutely critical to be well-prepared before you get started.   At the very least you should create a business plan with a 12-month financial projection, including a cash flow statement.  Cash management is usually the difference between a successful business, and one that doesn’t make it. 

You don’t have to quit your day job to start your own business.  I recommend starting with something small on the side that doesn’t require a big investment up front.  This way you’ll have very little downside risk, and if it doesn’t work out you’ll be alright financially.

When you’re starting out, you’ll probably be on a tight budget and you should look for every opportunity to save money.  That said, it’s important to recognize when paying a little more might get you a big return on your investment.  Investing some money in a CPA or attorney to help you get started could end up saving you big bucks later on.  For example, choosing the right corporate structure (S-Corp, LLC, Partnership, etc.) can help ensure that your personal assets are protected and minimize your taxes.

There are many great resources out there to help you along the way.  One of my favorites is the Small Business Association (SBA).  Anyone considering starting their own business should start here:  http://www.sba.gov/category/navigation-structure/starting-managing-business/starting-business.