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What Every Entrepreneur Needs to Know: 5 Tips For Starting a Small Business

Discover Five Tips for Starting a Small Business. What every Entrepreneur needs to know from Fresh Insights.

Owning a small business can be one of the most rewarding enterprises to embark upon. However, it's no secret that many small businesses struggle to survive within the first five years of getting off the ground. For new entrepreneurs, the best chance for success is to take the time to plan carefully and research their options before starting a small business.



Here are five basic tips that contain valuable information on getting started.

  1. Create a business plan. Even if a business does not need financing, a business plan gives an important outline of goals and a path to achieve these goals. This can be formal or informal, but it should be an ongoing document that changes as the business grows. A business is an ever-evolving entity, and the business plan should reflect both goals that have been met and those that are still being developed.


  3. Secure enough capital. One of the biggest downfalls of new business owners is underestimating the amount of money or capital they need in starting a small business. At a minimum, a new business will need enough money to launch the business and sustain it for at least six months, including the owner's salary. More than a ballpark estimate is needed to build a strong business plan. There are multiple resources available to help small business owners arrive at some solid estimates to get started. Consider talking with other business owners of similar ventures, trade associations, or SCORE - The Service Corp. of Retired Executives. An SBA-sponsored program, their mentorship and online programs can help get small businesses off the ground.


  5. Have a marketing plan/budget. Marketing is essential for a new business to build brand awareness and attract customers. Too many new business owners do not give this area the high priority in their budget it requires. The business planning and capital allocation process should always include a strong emphasis on marketing and advertising plans. Online media campaigns are the wave of the future, but it's also important to consider more traditional avenues like print ads and signage to get the attention of target customers on a local level.


  7. Have an accounting strategy. To stay within budget and track the progress of a venture, a small business needs to have good records. Most new business owners should invest in accounting software or a professional accountant to provide up-to-date financial reports and avoid expensive record keeping errors. For those business owners without extensive accounting experience, working closely with a certified public accountant also may be of some benefit.


  9. Do extensive research. All businesses will require some type of local or state licenses and permits to open. New business owners need to research beforehand what they will need (licenses, permits, tax ID, registrations, etc.) and decide on the appropriate business structure (sole proprietorship, partnership, incorporation or LLC). Business owners should carefully explore the options available in order to make the choice that best suits their individual needs as a proprietor. In some instances, it may be advisable to consult with an attorney on required licenses and permits as well as business structure choice.


By taking the time to carefully plan for their enterprise, new small business owners have a greater chance of success. Taking this basic information on starting a small business and putting it in place can help a savvy entrepreneur be successful.
Learn about Cadence Bank's Small Business products and services designed to help your new company thrive.
This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.

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