Opening a Small Business

Have you dreamed of opening a small business of your own? Do you feel you have what it takes to be in the retail business? If so, it's not as hard as you think! If you follow these tips, you’ll soon be on your way to opening a small business.

First, what kind of small business do you want to open? Let's use an example of opening a florist shop. Now that you know what kind of business you want to open, what do you do next? Here are nine simple steps to get you on the road to opening a small business:

(1)Business Plan

You will need to develop a good business plan now that you’ve decided that opening a small business is right for you.

You have your idea—a florist shop, but how are you going to pay for inventory, equipment, advertising and marketing and, payroll expense? If you need a business loan from a bank, a business plan is a must in opening a small business. A good guide to follow when writing your business plan is:

Name and description of small business
Owner, names and financial information
Proposed location-This is important, so take your time
Complete start up expenses expected
Expected commercial loan amount you need
One-year projections of income and expense

Once you have this written you can take this business plan to your bank to seek out a business loan.If you don’t feel comfortable writing a business plan, check with your local small business association or economic development organization. These organizations are there to help people and give them advice on opening a small business and usually employ retired business people who are willing to share their knowledge at no cost and walk you through your business plan.

(2)Premisis

Where will your new small business be located? Do you plan to rent or buy a building? If you have the money to invest and can afford it, buying is always good because your building will be an asset for your small business and it will create expense, which you will need at tax time. It will also give you equity in your business.; If you can’t afford to purchase a building for your florist shop, renting is also a good way to go. You don’t have a monthly mortgage payment and as a tenant, most major items and building repairs will be the landlords expense. Also, a lot of landlords these days are willing to make free tenant improvements to their rentals for people who are opening a small business.

(3)Financing

If you need start up money when opening your small business, you should already have met with the bank and submitted your business plan with a requested amount needed to open your small business. Now that you’ve found the location for your florist shop, this is a good time to call you bank and see how your business loan is going. If you are renting, let them know your estimated rental expenses.

If you are buying, do you need a larger commercial loan for a mortgage on the building? If so, give your personal banker this information. If you don’t feel you have enough money to put down on a commercial loan, plus pay loan fees to the bank, seek out investors who might be interested in helping you open your small business. These can be family, friends, or other business owners(see how I raised some money by asking friends and family) opens new window. Remember, if you need investors, make sure you agree to what you are doing, have documents prepared by a solicitor, and make sure all parties sign the investor agreements.

(4)Licenses-Registering Your Business

Okay, you have your location and know how you are going to finance your florist shop. What’s next? You may need to apply for a license depending on your particular business (e.g. selling alcohol )and open business bank accounts when starting your small business.You will also need to register your business with the Inland Revenue within 3 months or risk paying hefty fines.Also you need to find out what legal structure you want to set up for your business such as a sole trader, a partnership or a limited company.Seek advice from an accountant if your not sure who will explain the best structure for your business including if you need to register for V.AT value added tax.

The video below gives you some ideas and answers some interesting questions about opening a small business-it's not great but does provides some useful ideas.

(5)Advertising

While you getting your building or retail space ready, you should begin to advertise and market your business. If you’ve included this in your business plan and have the funds for it in your bank loan, then seek out companies who can help you create brochures and help with mass mailings. Place advertisements in the local newspaper to let them know when your florist shop will be opening and what type of florist services you will offer.

Meet with your local chamber of commerce and join as a business member. Your annual fee to the local chamber of commerce will pay for their support and advertising on their local bulletins to the community. If you haven’t included advertising in your bank loan and are going it on your own, make your own brochures and place them on windshields of parked cars to announce your business as well as connecting with other florist shops. Making a connection to other small businesses in your area can often be beneficial if they are willing to help you pay for joint advertisements.

(6) Inventory

You will need to find wholesalers that will sell you flowers and florist accessories for you to keep in stock. Ask other florists who they used when they first opened their small business. Find reliable wholesalers who can provide you with all the products you’ll need in your florist shop. Make sure they will deliver as promised and sometimes, signing a business contract with wholesalers will help you in opening your small business, as they will look at the signed wholesaler/retailer contract and you as a serious small business owner.

(7)Employees

If you need employees, you can put a help-wanted ad in your local newspaper or check with your local unemployment office to see if they have any qualified people you can employ. Make sure you check their background references and take the time to interview so you get the right people on your staff. Your staff is important when opening a small business and they must be people you can trust and rely on and possess good customer skills.

(9) Opening Day

Now that you have completed the steps above along with the small things like getting phone, fax and, computer lines, a credit card machine and have your business operating and payroll checking accounts opened, you are ready to open your small business!

Offer free give-always at your open day to entice people to visit your florist shop. Also, offer free seminars on flower arranging or wedding planning—these will bring in lifetime customers.Following these steps when opening a small business will ensure that you do it correctly, wisely and profitably.

By the way here is a true little story on how someone else has started her dream small busines in retail *Please read and leave some POSITIVE comments*

Plan your Business Today-Find Out More about Writing a Business Plan

Find Out More about Writing a Marketing Plan

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