10 KEY STEPS TO STARTING A SUCCESSFUL SMALL BUSINESS IN A RECESSION

Some would say "Are you mad!", but in fact the total opposite is true.

As a CPA and business turnaround consultant I can say from my own experience and those of my clients that this is an incredible time to launch out into a new small business opportunity provided you approach it correctly with sound planning and the appropriate success strategies in place. Without this you will be throwing your money into the wind.

During a recession market share changes as those businesses that are lean and focussed will stand to gain a greater slice of the cake while those that are ineffective and now oversized for the market will be battening down the hatches, cutting back staff and trying to keep their head above water just to survive.

So what does this mean for the person contemplating at starting a small business from home or exploring small business opportunities? It spells OPPORTUNITY. While there is mayhem in the market place smaller businesses that are focused with an effective marketing strategy and business plan will take business from those businesses who are focussing on their own survival rather than looking at extending their market share. You will find that businesses or people who wouldn't talk with you a year ago because you were too small are now more than willing to listen to a new proposition that can help them through the current economic climate.

There is a proverb in the Bible that says "If you fail to plan you plan to fail". That is so true in starting your home business. Even setting goals is not enough because a goal without a plan is only a wish. You need a plan of attack. You need to approach this as if this could possibly be the Holy Grail that will release you from full time employment or provide you with a serious alternative income stream.

Coming from this perspective the following are 10 of the key steps necessary to ensure you succeed:-

Set up a budget in terms of how much are you willing to invest in starting a new business and your current capacity to meet ongoing expenses that will arise until the business starts becoming profitable.

This is a key step because if you are planning to spend $1000 to setup a new business then you won't be in a position to look at a franchise or purchasing an existing business. You will also need to allow for additional funds you will need to cover your ongoing expenses and overheads until your Home business begins to pay for itself and then it can pay you.

You must determine up front how much time you are willing to devote to a Home business opportunity as this will help you eliminate fairly quickly those opportunities that require more time than you are willing to commit to. You must strike a good work / life balance and factor in quality time with your partner and family as well if your business is to succeed.

Look at business opportunities that would sit within your budget. Scrutinize them carefully to see if the returns promised can be substantiated.
- Do they have a successful history?
- How has the business been effected by the credit crunch?
- How much additional input will I need above my initial investment to get
started?
- What extra costs do I need to allow for on an ongoing basis?
- Are there any legal or compliance (tax returns etc) that I need to be
aware of?

The internet is an exciting market place creating more millionaires every year than any other business forum but the opposite is also true in that more people are losing faster than they can make it.

There are a number of very good business opportunities on the internet but finding them requires patience and ideally guidance from those who are already successfully doing business on the internet. It is a sophisticated market place that changes daily and it is important to personalise your business so that it's unique and attracts others to whatever you are selling.

One exciting opportunity worth considering can be started from as little as $200 that will suit even the tightest budgets that will take you step by step through the process of creating a successful business as well as ensuring you are in the top 2% of Home Businesses that do succeed. For more information Click here

Once you have found the right business opportunity you will need to prepare a business plan for the next twelve months. In the plan you should prepare a budget for the next 12 months, a marketing plan as to how you intend to build your new business and the steps and success strategies you will take to reach your goals.

You should also realistically consider where you would like the business to be in 2 and 3 years time so you can also think in the medium term as well. In essence the more detailed the plan, the more focussed you will be and prepared to start your new adventure. Your business plan should be a living document. It's your blue print that you can change and adapt as your business grows and you develop a greater understanding of the changes you need to make to build your business even further.

This is a real business so treat it like one. Go out and open a separate bank account, set up your office and workspace, register a business name or at least register a domain name for your business, get some business cards and develop a business mindset. This will help keep your eyes on the goal - Success.

Keep all your income and expense documentation to allow an accurate tax return to be prepared. Initial losses in some cases can be offset against tax you have already paid. Obviously the ideal situation is that you will eventually be making good profits so you will need some tax planning advice in due course.

Get professional advice there are many government agencies and bodies who are there specifically to help people get new businesses off the ground and to advise on the business basics. Much of this advice can be obtained freely. You can also speak to an accountant who can give you the pros and cons of different business structures such running the business as an individual or as a company. There are also some great online professional resources available.

Review your performance each month against your budget this is so important so you can see where you are going and where you still need to go to achieve your business plan. Monthly reviews are one of the major success that will allow you to make adjustments where they are required and also help keep you on track to achieve success in your new business venture.

Most importantly NEVER give up. There is no such thing as a business that does not require effort. A consistent, focussed and diligent effort will succeed. Keep yourself motivated. Get yourself involved with likeminded people and keep learning.

These 10 strategies will give you a solid foundation for your Small business or Home business success. I will build on these points in future articles with detailed steps and examples including some potential opportunities that are worth considering as well as the training and tools that will make the difference between success and failure.

The internet is a veritable jungle in which it is so easy to get entangled and lost in analysing ad spending and not actually doing what is necessary to build your business that will very quickly bring your business unstuck. I will help you to keep your eyes on the goal until you reach the success you are planning to achieve.

If you are ready to explore a new business opportunity that will take you step by step through everything you need to succeed then make sure you click here and find out what separates the top 2% of businesses that succeed from the 98% that fail.

PS If you need some help cutting costs quickly and would like some tips on making easy money just by making some adjustments to the way you do certain things without having to incur any costs then click here