NASE Blogs

Shop Talk: Starting a Business

Mar 08, 2009
Getting Started

You should start a business that, based on the product/service, has a realistic chance to succeed in the marketplace. One way to evaluate a business venture is to develop a formal business plan which establishes the product/service, the market, production, pricing and financial projections. It is also important to have basic knowledge in accounting, marketing, advertising, legal and personnel areas. Even if you have to trust someone else for expertise in these areas, you need be knowledgeable enough to keep them honest.

 


 

Buying a Business

Any business opportunity should be investigated thoroughly for legitimacy. Research should include: disclosure about financial conditions, a list of people using the product/service, state of incorporation or legal business address, and contact the Better Business Bureau to see if any complaints have been filed against the business in question. Remember, if it sounds too good to be true, it probably is!

 


 

Developing a Business Plan

Every business should create a business plan which outlines and describes the business idea, management, anticipated results and route to be taken to accomplish the goals. It also helps you develop a structure and guidelines to stay on track with the original concept of the business. Your business plan should include the following segments: business history, management responsibilities, description of products and services, in-depth description of the market and customer base, production description and procedural methods and financial information about profit projections and cost data.

 


 

Buying a Franchise

Buying a franchise is often less risky than starting a business from the ground up since it is already established, but if you don't have the expertise required, your chances of success may still be low. If you consider buying a franchise, obtain a disclosure agreement listing financial conditions, requirements of the agreement, other franchisees, and other information that will allow you to investigate and evaluate the franchise before making any contractual agreement. Make sure you understand every aspect of the agreement and what the franchiser expects of you and what you can expect of the franchise.