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Frequently Asked Questions
Typically, as a small business owner you will be responsible for everything, from marketing to maintenance. Expect to spend long hours (perhaps 10 to 12 hours per day) on the business for the first few years. Carefully consider your personal needs and those of your family before taking on this commitment.
Finding the right kind of business is an individual choice. Your personal expertise, management skills, and financial capacity will help in making this decision. Take inventory of your knowledge, interests, talents, and resources. There are books and self-tests that can help.
When a student asks us to do so, the Office of Services for Students with Disabilities, provides reasonable accommodations such as readers, scribes, signed language interpreters, and assistive technology.
At no time does a student pay fees for reasonable accommodations. However, personal services such as personal care attendants, drivers, etc. or personal devices such as tape recorders, software, etc. which would need to be taken home are the responsibility of the student.
No student can be denied access to any program based solely on his or her disability. All students must adhere to the standards of the program with necessary accommodations made according to his or her disability so long as the accommodations do not fundamentally alter the objectives of the program. When the standards are not met and the student has been given appropriate accommodations, it is reasonable that the student may be denied certification in the program.
There are four basics of success in small business:
- Sound management practices.
- Industry experience.
- Technical support.
- Planning ability.
Few people start a business with all of these bases covered. Honestly assess your own experience and skills; then look for partners or key employees to compensate for your deficiencies.
Personal savings or money from family and friends finances more than 75% of start-up businesses. Willingness to commit your own funds is often the first financing step. It is certainly the best indicator of how serious you are about your business. Risking your own money gives confidence for others to invest in your business. Banks are an obvious source of funds. Other loan sources include commercial finance companies, venture capital firms, local development companies and life insurance companies. Trade credit, selling stock and equipment leasing offer alternatives to borrowing. Leasing, for example, can be an advantage because it does not tie up your cash. Ask your local SBDC office for information about the various sources of funding available.
Small business today faces growing inventory requirements, increased customer expectations, rising costs and intense competition. Computers can provide information that leads to better management of resources. At the same time, they help you cope with the many other pressures of your business. Computers are not cure-alls, however, and considerable care should be given to:
- Deciding if you need one.
- Selecting the best system (or personal computer) for your business.
- Selecting and learning appropriate software.
There are four basic aspects of marketing, often called the “four P's”:
- Product: The item or service you sell.
- Price: The amount you charge for your product or service.
- Promote: The ways you inform your market as to who, what and where you are.
- Placement: The channels you use to take the product to the customer.
As you can see, marketing encompasses much more than just advertising or selling. For example, a major part of marketing involves researching your customers: What do they want? What can they afford? What do they think? Your understanding and application of the answers to such questions play a major role in the success or failure of your business.
The principles of determining market share and market potential are the same for all geographic areas. First determine a customer profile (who) and the geographic size of the market (how many). This is the general market potential. Knowing the number and strength of your competitors (and then estimating the share of business you will take from them) will give you the market potential specific to your enterprise.
Your business growth will be influenced by how well you plan and execute an advertising program. Because it is one of the main creators of your business' image, it must be well planned and well budgeted. Contact local advertising agencies or a local SBDC office to assist you in devising an effective advertising strategy.
The price of a service or item is based on three basic production costs:
- Direct materials
- Labor
- Overhead
After these costs are determined, a price is then selected that will be both profitable and competitive. Because pricing can be a complicated process, you may wish to seek help from an expert.
You have done your homework:
• You have a complete business plan.
• You know where you want to operate.
• You know how much cash you will need.
• You have specific information on employee, vendor and market possibilities.
You now may want someone to look over your plans objectively. Contact the business department at a local college for another opinion. A counselor at the Small Business Development Center can also review your work and help with the fine-tuning. Then, when you have made the final decision to go ahead, it is time to call the bank and get going. Good luck!
You can find forecasts of the “top businesses for the '2000s” in books and magazines. However, much depends on timing, location, hard work, and luck. Research your business and industry thoroughly.
Many small businesses fail. There are no guarantees, but studies have shown that careful planning and objective evaluation will increase your chances for a successful business.
