• Starting a small business is an exciting time, filled with the potential for success. Along with a great idea or niche, many small business start ups also need financing through banks or private lenders.Prosper: Get a Personal Loan for your Business And whether you're looking to start a brick and mortar storefront, an home-based business or an internet store, a solid, well-researched plan of action is a must.Small Business Administration: Small Business Planner From your first idea to your first customer, plan ahead for success. The following article will help guide you through the process of starting a small business.

1. Create an online presence.
2. Start a blog that relates to your business.
3. Send out a newsletter for new and existing customers.
4. Add a poll to your websites.
5. Advertise in the signature line of your email.
6. Advertise on well-known websites.

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• by K. Ring

1. Work your big idea out on a paper or worksheet first to get a good idea of its potential profit.Small Business Administration: Finance Start-Up
2. Sites like Business Know-How and Palo Alto Software offer free online start-up cost calculators and worksheets to get you started.Business Know-How: Start-Up Cost Calculator Calculator PaloAltoSoftware.com: Starting Costs Estimator
3. If your idea doesn't seem to be profitable, don't give up. Try a different angle or another related niche that you can fill.
   • -For example, if you've decided to chuck the idea of selling housewares because you can't find a reliable distributor, consider becoming a distributor yourself.

• A successful small business starts with a great idea and thorough research.Forbes.com Video Network: Small Firms Online (Time: 1:26) You have to know your would-be customers and competition inside and out. You also have to know what the market potential of your big idea is. There are thousands of great ideas out there, but if you can't sell your products or services at a reasonable price, it's time to find another big idea.BusinessTown.com: Businesses You Can Start With $5,000-$15,000

• A business plan helps guide you from the inception of your business to making a profit. The business plan helps you determine start-up and on-going costs, as well as helps you meet financial and business goals.Wikipedia: Business Plan

1. The Wall Street Journal offers a free online "MiniPlan" service that walks you through the first steps in creating a business plan. Simply register for a free account and get started with sample business plans, cost calculators and more.Wall Street Journal: Small Business MiniPlan
2. For a step-by-step walkthrough on vital sections and important data to include in your plan once it's time to start drafting, make sure to check out Mahalo's guide on How to Write a Business Plan, too!

• There are many programs available to finance your small business, investigate each one thoroughly to find one best suited for your type of business.

• The Small Business Association (SBA) offers loan programs for new and existing businesses. Special loan programs are offered for veterans, Native Americans, women and minorities to assist them in starting a business.Small Business Administration: Special Audiences

• Venture capitalist funding sources are available for businesses that traditional banks consider too risky for investments. With venture capitalist funding, a portion of your business is owned by the venture capitalist until the loan is repaid. The majority of venture capitalists are retired entrepreneurs themselves. The SBA website hosts a state-by-state list of companies that offer venture capital. Most of the companies have listed the qualifications for funding with venture capital.Small Business Administration: Investment Division

• Angel investors are ordinary people who invest in small businesses to lend a helping hand. Angel investors usually invest smaller amounts of money than venture capitalists do, but they also expect the loan to be repaid.Entrepreneur.com: Money How-To Guides - Angel Investors
  • -Visit Inc.'s list of angel investor sites if you're interested in drumming up investments for a particularly hot business idea.Inc.: Angel Investor Directory

• A "brick and mortar' storefront offers your customers the opportunity to browse through your goods or personally select the services he wants. Brick and mortar stores do best when located in a high traffic areas or tourist locations. You can start your own business or consider the possibility of buying an existing brick and mortar business.

1. Investigate the Business Thoroughly. Look into everything about the business, from its reputation in the community to it's financial standing.Small Business Administration: Buy a Business
   1. Look at the accounts for outstanding debts owed to the business and its daily cash flow.
   2. Before you buy an existing business, do your homework to make sure the business will make money for you.
2. Hunting for Goodwill. Make sure you're buying not only the inventory, fixtures and real estate, but also the goodwill. Goodwill is the good customer relations that are already established by the business that the seller cannot take with him.
   1. Goodwill is also the good name of the existing business that will continue to bring customers to the store, regardless of who owns it.Family Law Software, Inc.: Law - How is Goodwill Counted?
   2. Goodwill is the main reason many people choose to buy existing businesses as they offer immediate cash flow.Wikipedia: Goodwill (accounting)
3. Lawyer Up. Before you buy an existing business, make sure you have a lawyer examine everything and draw up a non-compete clause so the seller can't open a new shop down the street.
   1. Be specific in the non-compete clause regarding the distance required from your storefront and how long the non-compete clause will remain in effect.Clubi.ie: Competition Law and Non-Compete Clauses
   2. Have the lawyer examine any potential liabilities associated with the business. With such a large investment, hiring a lawyer to examine all the aspects of buying the business is a must.Forbes.com Video Network: Entrepreneurs: Liability Concerns (Time: 1:35)
4. Rent or Lease First. When starting a brick and mortar business from scratch, it's recommended that you start with a rented or leased space to reduce your initial start up costs.Small Business Administration: Pick a Location
   1. The monetary investment in real estate for a new brick and mortar business may make the business non-profitable for years to come, based on the amount of mortgage or financing you'll need.
   2. If your new business fails, it's also much easier to recoup losses without trying to sell real estate or pay a mortgage on the building that houses a defunct business.Small Business Administration: Pick a Location
5. Promote Locally. Attract customers to your brick and mortar storefront with clever promotions-- sometimes referred to as guerrilla marketing.
   1. Hold a grand opening sale, host a private pre-opening sale, offer existing customers discounts, coupons or offer a grand prize of value to draw in customers.Entrepreneur.com: Guerilla Marketing (April 25, 2005)
6. Use Savvy Design and Technology to Draw in Customers Design your sales area and storefront in a savvy, customer friendly way.Entrepreneur.com: Guerilla Marketing (April 25, 2005)
   1. Keep the storefront clean and clearly visible. Many new businesses place too much in the storefront or front window. A cluttered front window gives the impression of a cluttered and disorganized store.
   2. Organize your displays to make them attractive to passers-by and shoppers-- and hopefully turn them into customers.Entrepreneur.com: The Art and Science of Retail Displays (July 22, 2005)
   3. Add your business to online maps so customers can find you more easily.Carolina Newswire: 10 ways to use online maps to generate business leads and sales (January 2, 2007)
7. Customer Convenience Comes First. Operate your retail "brick and mortar' store according to the needs of your customer.
   1. Set the days and hours that are convenient to your customer, not you or your employees.
   2. Make sure you have access to suppliers that are reliable and on time with delivery.SBDCNet: Arts and Crafts
   3. Keep the entry way clear and well-lit with easy access.
   4. Always mark the price of your items clearly if you want customers to return-- how many times have you avoided going to a store because their prices were never marked?
   5. Keep your sales racks and sales items in a separate location with clear signs pointing the way. Rotate your stock frequently and keep your stock clean. If you think of your customer first, your sales will increase and customers will return.Entrepreneur.com: 10 Insider Tips for Retail Success (February 22, 2005)

• Home based businesses can be either a blessing or curse. If you keep your business or office separate from your living quarters, your home based business is more likely to succeed.

1. Adhere to Local Zoning Laws, especially if you have customers coming to your home. Many municipalities or cities have very strict zoning laws and some do not allow customers to come to your home.Small Business Administration: The Business Plan for the Home-Based Business
   1. Many cities will allow home based businesses if the business has a separate office and separate entry way.
   2. Zoning laws, along with city, county and state regulations as well as traffic flow studies, parking and concerns of neighbors will determine if a home-based business is feasible for your location.Small Business Administration: The Business Plan for the Home-Based Business
   • NOTE: Remember that a home-based business is not the same thing as a home office! A home office is generally used to do bookkeeping, make appointments and return phone calls-- anything that doesn't involve customers coming to your door. But a home-based business could be anything from a Bed and Breakfast to an accounting office or beauty salon.
2. Be Professional. Keep your home based business as business-like as possible to encourage good work habits and a professional atmosphere Stay organized and maintain good records.
   1. Don't allow receipts and post it notes to swallow your home based business. Keep accurate files and file your work every day.
   2. Organization and good record keeping is especially important in the restricted space of a home based business.Microsoft Small Business Center: Make a good home office great: 7 ways
3. Environment is Everything. Crying children, barking dogs or TV's in the background are likely to chase customers away because it's not a professional setting and customers will think you don't take the business seriously. They are also a distraction to you as you try to concentrate on work and deal with customers.Entrepreneur.com: Secrets to Staying Focused in Your Home Office (May 17, 2004)

• Many people decide to start an online only web based business. Web based businesses generally offer specific goods or services on a website or an auction site. The most successful web based businesses have a professional website presence and offer their goods or services at an auction site like eBay or Amazon.Sparkplug CEO: Top 10 Internet Home Business Ideas You Can Start and Run in Your Underwear (August 7, 2007)

1. The name may say it all. Start with a creative name for your web based small business. Your name is called your domain name and you will keep the name no matter who you choose to host your website.
   1. Be smart when choosing a domain name: make it easy and simple to remember. Avoid using names that are too long or putting dashes in the name.
   2. Choose a name that most people would put in a search engine when looking for the products you sell.Entrepreneur.com: Find the Perfect Domain Name (May 15, 2007)
      • -For example, if you sell 57 Chevy parts, name your website something that includes the words 57 Chevy instead of a generic name. Most people who want parts for a 57 Chevy will simply type in "57 Chevy" in the search engine.
   3. The naming of your website and keywords used on your website are part of the SEO, or search engine optimization that will steer customers to you from search engines. When search engines are optimized, traffic flow to your website increases.Wikipedia: Search engine optimization
2. Create a professional website for your business to increase visibility.
   1. Many website hosts offer a blanket service that will register your domain name, offer you a free website builder and host your website on a monthly basis.
   2. You don't have to know special html or computer language to build a website and most people can do it without problems.AllBusiness: How to Create a Professional Web Site in 24 Hours
   3. There are many websites and forums that offer free help and suggestions about website tools and building.
3. Consider hiring outside help if you don't have the time to tinker with building your own website. Sometimes it's most painless to just pay a professional.
   1. If you find a website design that you like, scroll to the bottom of the page to find the name or link of the designer.
   2. Click on the name of the website designer and ask about designing a similar site for your business.
4. Always accept payments online. Set up your website with a payment system that is well known, reliable and trusted.
   1. Many customers are lost if they cannot buy from your website or if they have to send an email for a price.
   2. Paypal in an excellent service which allows payments to be made to your business even if the customer doesn't have a credit card. Paypal is recognized around the world as one of the most reliable ways to send and receive money on the Internet.Washington Post: How Do I... Use PayPal? (October 9, 2007)
5. Get the word out!
   1. Post valuable information for your customers on your website with articles or resources. This can be in the form of short paragraphs that you write, pay a content writer or add educational material with permission from the publisher.
   2. For example, if you sell pet supplies online, post articles about pet food, training and health. Not only will your customers benefit from "free" advice, they will be more likely to return to a site that values their pets' well being, as much as the wallet.
6. Send a monthly newsletter to your customers.
   1. Remember that a newsletter doesn't have to be written by a published writer to look professional and polished.Microsoft Office Online: Getting the word out: newsletters step by step
   2. If you have a good knowlege of your products or services, you can write a newsletter yourself. And don't forget to use spell check.

• No matter what type of small business you start, the most basic rules apply to become successful. Remember that the golden rule of retail businesses-- the customer is always right. Base your business on the customer and his needs, and make honesty the first rule of your business. Return phone calls and emails promptly, repair what is broken and accept returns with a smile. Always strive for honesty, integrity and excellent customer service so your customers will return again and again. Above all else, a satisfied customer is the best advertisement!Microsoft Small Business Center: 7 tips for excellent customer service (p.1)