If you’ve ever dreamed about starting a business — being your own boss, setting your own hours, working at a job you love — then you’ve taken that first important step.

But before anything else can happen, there’s a whole lot of thinking, planning and plain old-fashioned paperwork to be done. You can succeed in business, but not, as the title of that familiar Broadway musical would have you believe, “without really trying.”

In this practical guide, you will learn what it takes to start and sustain a business, step-by-step. By the time you reach the final pages you’ll have built a solid base from which to “make happen” the business you’ve long dreamed about.

 

Do You Have What It Takes?

Is Entrepreneurship Right for You?

What does it take to succeed in a business of your own? If you answered “money,” you’d be right — but only partly. More important at this stage — when your dream to start a business is still just a dream — is determining whether you really have “the goods” to be an entrepreneur.

Based on its study of 2,500 U.S. entrepreneurs, research firm Gallup Inc. determined that successful business owners share 10 personality traits. They are: business-focused; confident; creative; delegators; determined; independent; knowledge-seekers; promoters; relationship-builders; and risk-takers.

If your personality is strong in these areas, you’ll probably make a good entrepreneur. If not, perhaps it’s time to re-think your dream. And if you aren’t quite sure how you measure up, now’s the time to honestly answer these questions:

You may discover that starting a business is not the right career path for you. Or, conversely, that business ownership is a dream worth pursuing. If so, let’s get started.

Have You Done Your Homework?

Planning for Success

You wouldn’t buy a house or a car without some serious research first. So why would you even think of launching a business without the same careful attention to detail? Some things you need to consider before taking the entrepreneurial plunge: management style, the industry you represent, potential markets for your product or service and your overall financial condition.

Entrepreneurial Assessment
Despite differing backgrounds and goals, every business owner needs expertise in the same five basic business functions: management, operations, marketing, sales and finance. Use the Entrepreneurial Assessment at FloridaSmallBusiness.com/TryIt to rate your strengths and weaknesses in each of these areas. If you don’t have personal experience in a particular one, now would be a good time to acquire it. Reach out to family, friends or colleagues for their specialized expertise or enroll in a workshop, seminar or college-level course to broaden your knowledge of a particular topic or skill. Look for special opportunities, such as entrepreneurship educational programs specifically aimed at veterans, women and minorities.

Industry Analysis
Every business in the U.S., including yours, falls within a particular NAICS (North American Industry Classification System) code, a standard used by federal statistical agencies in classifying business establishments for the purpose of collecting, analyzing and publishing statistical data. Knowing the NAICS code for your industry is useful for filing tax forms and being considered for federal contracts; it also opens the door to a wealth of information.

Before launching your business, look up your NAICS code online for the following data:

Also, be sure to access the Industry Assessment template available at www.FloridaSmallBusiness.com/TryIt to categorize the positives and negatives about your industry, then use what you learn to take advantage of “opportunities” and counteract “threats.”

Market Analysis
Since no business exists in a vacuum, there are always market factors to consider, such as:

Look for market information online or at the library from such sources as Small Business Development Center (SBDC) National Information Clearinghouse (www.SBDCNet.org); industry and trade associations; chambers of commerce; market research firms; media; competing and non-competing businesses with the same target market; and the U.S. Census Bureau.

Financial Analysis
How much money you’ll need to launch depends on the type, size and location of your business. The task of estimating the costs of starting and running your business can be tedious, and you may be tempted to skip it for now because you’re uncomfortable with doing the math. Keep in mind, however, that by estimating your initial and ongoing costs up front you will be able to: (1) determine the amount of any financing you may need to get your business off the ground; (2) set a break-even point (the day when you can expect to begin making a profit); and (3) better manage your cash flow through the first crucial year and beyond. Two groups of figures to consider: