Entrepreneur Profit – Entrepreneur Startup Guide to Profit

During troubling economic times, Americans are increasingly choosing to demonstrate their entrepreneurial spirit. More home based businesses and small businesses are being started by persons looking to experience Entrepreneur Profit. This spirit and ambition are admirable. The concern is that sound up-front planning be carried out in order to maximize the opportunity for real Entrepreneur Profit.

The success of ebay is evidence that many people have succeeded in making money quickly by selling personal items in an online auction. Others have turned to Craigslist to sell items in online classified ads. These are examples of individuals demonstrating the entrepreneurial spirit and experiencing Entrepreneur Profit. Selling personal items online is easy, quick, inexpensive, and doesn't require formation of a business. More people are beginning to consider expanding the use of an online auction like ebay, or Craigslist, and turning it into a business. For expert advice on how to succeed in building a business selling items in an online auction or via online.

For those that are looking to market products and services for profit, they need to formalize their business and register it with the state and federal government. Persons looking to start their own business need to accept that there are no guarantees of success. However, the chances for success improve significantly if the following recommended up-front planning steps are followed.

Identify the Business Direction

• Will this be a "for-profit" business? (I'm going to assume the answer is yes)
• Identify specific products or services to be sold?
• What specific skill sets and expertise are available within the management team?
• What personal strengths and weaknesses exist in the management team?
• Is there a preference (a) to buy a franchise, (b) to purchase an existing business, or (c) to start-up a business from scratch?
• Does the business owner have sales skills? (Not just for selling a product but for hiring a top-notch team, negotiating contracts, raising money, or forming joint ventures)

Write a Business Plan

• Regardless of how big or how small a business will be, it helps to write a business plan. The process of writing a business plan will help to identify the important issues that need attention in forming and operating the business.
• If financing is needed from a friend, bank, or investor, they will want to see a business plan.
• The owner of the business should write the business plan, or participate in the writing of the business plan, even if they plan to provide all the financing for the business.
• It almost always takes longer to get a business started than a person might think. Likewise, it generally takes more money to get the business running than anticipated. The business plan should include a contingency plan should delays and cost overruns occur.
• The business plan should include a marketing plan. Identify specific strategies that will be used to advertise and promote the products and/or services.

Obtain Financing

• The business plan should identify the working capital (cash) needed to run the business. The best way to do this is to set up a spread sheet with planned income and planned expenses each month. Calculate the cash position each month to insure there is always sufficient cash on hand to pay the expenses.
• If necessary, obtain adequate financing from friends, family, credit union, bank, or investors right up-front.
• Beware of (a) giving up too much ownership and control of the business, and (b) taking on too much debt that must be paid back regardless of how much revenue you're taking in.

Identify The Business Legal Structure

Will your business be a sole proprietorship, partnership, or corporation? I recommend consulting with a certified public accountant for advice on the right legal structure for you. Financing decisions will impact the legal structure and the legal structure will impact available financing options. When these decisions have been made, a business name will be needed in order to complete the filing with the state and federal government for tax identification numbers.

Other Issues

There are many other issues to consider. A few of them are listed here.

• Will the business be run out of the home or will it be necessary to lease some space?
• Will it be necessary to hire employees or independent contractors?
• How will payroll be handled?
• Who will keep the financial books?
• Will it be necessary to hire a bookkeeper or accountant?
• Will sales tax need to be collected?
• Are there legal issues that require the assistance of a lawyer?

Following the above steps will provide a good foundation on which to build a small business or home based business.

It's important for all new business owners to get real with themselves and recognize that one person cannot be an expert in all aspects of starting a new business. Find the necessary help from experts that know what they're doing. Join a small networking group of small business owners with whom experiences can be shared in confidence and helpful advice received.

If the business includes the sale of products or services online, I recommend a website that contains a collection of helpful guides, tips, and secrets written by experienced online marketing professionals. Each expert shares their perspective on 'how I get money online' and how others can achieve success with an easy to follow step-by-step implementation plan. For more information click Entrepreneur Profit.