Young entrepreneurs have to work hard to overcome inexperience and gain credibility. Kiplinger’s Personal Finance offers these tips to increase the odds of success when starting out and starting up. And know, once you have your plan ready to go, contact us to quickly and easily get you incorporated.
1. Get some experience
If you’ve never clocked a day of work in your life, take a job before striking out on your own — even if the thought of doing time in a cubicle makes you shudder. Think of it as a paid research position. In a couple of years, you can give your business a go.
2. Build a winning team
Bring on people who complement your skills and fill in the gaps. Mary Beth Metrey studied Spanish literature at Georgetown University, and always dreamed of opening a boutique. But her short stint in retail didn’t provide all of the details of running a shop. Heather White, her hometown friend had studied fashion design and merchandizing. Naturally, Metrey asked White to be her business partner.
3. Fight inexperience with advice
Seek out local organizations. New Yorker Leah Alani, 29, founded SophieSays.com, an online boutique for stationery and gifts. She gained the confidence and the practical skills to accelerate the startup date after taking a four-week class with Ladies Who Launch, which has local chapters in metropolitan areas.
4. Write a bulletproof business plan
A solid business plan is your key to raising capital. You can demonstrate your penchant for using sound judgment by crafting a document that sells your business and lures financers. It’s your greatest opportunity to fill the credibility gap. Find inspiration from sample plans at www.bplans.com.
5. Raise money
You should overestimate how much money you will need from the beginning; it’s easier to raise money before the launch than it is after you’ve failed to meet projections. Clutching a business plan that sells, go first to a bank to request a loan. If the banker can’t offer you a loan, ask for his or her advice about how to improve the plan so you can try again.
6. Follow the money
Count on a cash cushion to live on for at least the first six months because you likely won’t have an income. Once the business launches, regularly compare your actual income and expenses to your original forecasts to take the pulse of your company.
Tags: advice, banker, business plan, experience, funding, kiplinger's personal finance, leah alani, loan, merchandizing, metrey, online boutique, raise money, research position, sophiesay.com, start your own business, start your own company, startup, winning team