Resources Needed to Start a Small Business

By Cindy Hill

Starting a small business is a complex process that requires significant resources, not only money and materials but also time, energy and commitment. While becoming an entrepreneur is the dream of many people, it takes hard work, a team of professionals ready to assist, and the support of friends and family to make that dream come true.

Starting a small business is a complex process that requires significant resources, not only money and materials but also time, energy and commitment. While becoming an entrepreneur is the dream of many people, it takes hard work, a team of professionals ready to assist, and the support of friends and family to make that dream come true.

Capital

Small businesses need an infusion of capital in order to operate until the business starts making a profit. Usually, the business owners make a capital contribution to capitalize the business -- or start with nothing and bootstrap their business with hard work and tight belts until it begins generating income. Loans from friends and family, bank financing, and grants or loans from non-profit organizations or the U.S. Small Business Administration are other common ways that entrepreneurs secure startup capital to launch their small businesses. Like most other aspects of starting a small business, securing capital requires superb communication skills, strong commitment and the dedication to continue seeking alternative funding sources if you are turned down by those you approached first.

Protect your loved ones. Start My Estate Plan

Expertise

No small business owner can start up and succeed without a support team that includes expertise in law, finance and marketing. A sharp accountant can save you money and make sure you avoid trouble with taxes, while a savvy business attorney can help make sure you secure valuable rights in your products and marketing materials. A mentor can provide the invaluable wisdom of experience. Mentors and connections to people with small business marketing savvy can often be found through SCORE, a national non-profit associated with the U.S. Small Business Administration, or through state or local non-profit small business development centers. Workshops and social gatherings through these nonprofits help put you in touch with other small business owners who can share their resource of experience.

Management and Plan

A successful small business starts with a business plan. The business plan establishes a road map for moving your small business forward. Writing the business plan allows you to assess your capabilities for managing the growing business. A startup small business typically needs a person who is dedicated to running the business on a daily basis and for long hours, including on weekends. While a new business owner with substantial resources may be able to hire managerial assistance, the person working the 80 to 100 hour weeks in most startup small businesses is the owner. This commitment requires not only time, but the support of friends and family.

Marketable Product

A startup small business needs a marketable product or service. The small business owner must acquire the expertise as well as any professional licenses required for many service businesses, from cosmetologist to attorney. Developing a new product requires capital for purchasing inventory or raw materials, as well as acquisition of skills in packaging and marketing, production at the scale necessary for profit, and safety considerations, especially for products like food. Test-marketing and producing samples to entice wholesalers into picking up the product may be necessary, depending on the type of business. Time and money must usually be spent on market research, discerning consumer's needs or wishes and creating a unique product or service that fills the market niche.

Protect your loved ones. Start My Estate Plan
Guide to Setting Up a Sole Proprietorship in Florida

References

Related articles

How to Register a Sole Proprietorship in the State of Florida

If you plan to start a business in Florida and want to work by yourself, a sole proprietorship might be an appropriate option. Choosing this type of business entity gives you the flexibility to begin transacting business quickly with relatively little paperwork. Starting a sole proprietorship business is less cumbersome than starting other types of businesses, such as corporations and limited liability companies. You can register your business in only a few simple steps.

How to Build a Successful Non-Profit

Starting a new nonprofit and building it into an organization that will exist for years, even after the founders have moved on or passed away, can be more challenging than it seems initially. Management can spend so much time pursuing the organization's mission that they forget a nonprofit is also a corporation that must focus on proper governance, developing resources and establishing a reputation for delivering effective services. The best way to build a successful nonprofit is to find a balance between the pursuit of a mission and the development of the infrastructure that makes the pursuit of those objectives possible.

Is a Business Plan Needed for an LLC?

Creating a business plan can be a rewarding experience for entrepreneurs planning to start their own business. Although a business plan is not a legal requirement for LLCs, members can gain the same benefits from business planning as partners and sole proprietors. LLCs go a step further than many private businesses in their planning activities, since LLCs are required to draft a formal operating agreement in most states.

LegalZoom. Legal help is here. Start Here. Wills. Trusts. Attorney help.

Related articles

Common Sole Proprietorship Industries

Sole proprietorships are a popular business structure because they are simple to set up and have few state filing and ...

How Important Is a DBA?

A trade name, which is the DBA, or doing business as, name, may well be a business's most valuable asset. Through its ...

Reasons for Establishing a DBA

Not everyone who starts a business chooses to incorporate or set up a limited liability company, or LLC. Certain ...

Advantages & Disadvantages of Filing for a Fictitious Business Name

The name you use to conduct business can greatly affect the success of your endeavor. While you're required by state ...

Browse by category
Ready to Begin? GET STARTED