Many people want to own a business but often don’t know how to get started. Business owners usually begin either by selling products that meet customers’ needs or developing a solution to a particular problem. Small businesses may also need licenses, including retail businesses that require a vendor’s license.

• Types:
  • One of the first considerations in starting a business is determining what product or service to sell. You could use your previous experience when creating your new business venture. For example, if you designed websites you might start freelancing as a website designer. Or turn your hobby into a job, such as teaching karate if you have a black belt.
• Significance:
  • Small business startups often begin with financing. You could withdraw money from savings, use a retirement account or obtain a bank loan. Additionally, you will need to decide where you plan to operate your business. For example, you can run a consulting business from your home, but you will need a store or outlet if you wish to operate a local retail business
• Function:
  • Promoting your business is another concern when considering a small business startup. Determine the best ways to market your business, such as through direct mail, magazine ads, radio or the Internet. Test your advertising by keying direct mail pieces or by tracking Internet visits. Expand your advertising efforts if they are pulling in leads and orders.
• Considerations:
  • Once you start acquiring customers, develop programs to help retain them. One example is using a loyalty or frequency card program. Companies usually issue plastic cards with magnetic stripes for frequency card programs. Have customers fill out an application with their name, home address and email. Reward customers according to their frequency of visits or by the amount they spend. Additionally, you can send coupons to your best customers.

• Choosing an exit strategy for your business might not seem like an obvious step when you’re just getting started, however planning ahead is an important part of building a business. An exit strategy is a plan for how you will eventually leave the business. It also includes details on what will happen to the enterprise after you have left.
• All businesses need an exit strategy at some point, even if that just means transferring ownership of the company when one owner decides to retire. Leaving a business can be stressful, and emotions can often cloud your judgment. Should this occur, a good exit strategy that you’ve come up with in advance will enable you to address tough situations rationally.
• Here are some things to consider when making your exit strategy:
  • The length of time you plan on being part of the business
  • Your financial situation and expectations
  • Any investors or creditors who need to be compensated, and what that process will look like

• Your business credit record is the primary way that companies evaluate whether to do business with you and on what terms. Companies rely on your business creditworthiness to make critical decisions, including whether:
  • To sell to you
  • To lend you money
  • You are viable as a partner
  • To lease the equipment, you need to grow your business
  • To increase your line of credit
  • To help you carry more inventory at competitive prices
  • To give you favorable financing rates and terms
  • You stack up favorably against other companies competing in your market space
• Business credit includes a variety of data points about your business, such as the date it started, the skills and experience of your top leaders, number of employees and annual sales. This type of information is listed in your business credit profile, along with scores and ratings that are derived from your business’s past behavior to predict its future behavior. For example, your ability and willingness to pay your bills on time in the past is factored into your ability and likelihood of paying your bills in the future.
• All businesses need an exit strategy at some point, even if that just means transferring ownership of the company when one owner decides to retire. Leaving a business can be stressful, and emotions can often cloud your judgment. Should this occur, a good exit strategy that you’ve come up with in advance will enable you to address tough situations rationally.