Seven essentials for starting a small business.

• Author: Blilie, DuWayne
• Position: Indiana: Small Business Reference Guide - Brief Article

Here are seven essentials for starting a small business. Granted, it requires more than seven tools to construct a business, but these helpful hints will provide a solid foundation for potential business owners to build upon.

ASSESS YOUR GOALS, SKILLS AND MARKET

You can increase your chances of success if you take the time to answer the following:

* What are your strengths? Weaknesses?

* Why do you want to go into business?

* What are your business and personal goals?

* Who are your competitors? Your potential customers?

Write your answers down--this background information will be useful as you develop a business plan, meet with advisors and develop your business.

EXAMINE YOUR FINANCES

This piece is critical: Start by assessing your personal financial resources, identifying financial risks, estimating startup costs and first-year business expenses, and estimating total cash requirements and a break-even point. These equations can be complicated, so you can consult with your banker, trade associations and others in your line of business to help you do the math.

CRAFT YOUR BUSINESS PLAN

A good business plan is something every business absolutely must have. A business plan details your business description, goals, target market, competition and financials--it is like a resume for a small business. The national group SCORE (Service Corps of Retired Executives) can be an excellent resource for developing business plans, referrals and networking with other small-business owners.

RECRUIT YOUR TEAM

Like a basketball team, it takes about five star players and a few key reserves to develop a winning small business. Your team should include:

* An accountant to help set up books, prepare taxes and provide tax advice

* An attorney to help you choose the right form of business, ensure the proper papers are filled, draft contracts and leases and provide legal advice

* A banker to help you get financing, establish credit-card accounts and provide business operation advice

* An insurance agent to evaluate your risk-management needs

* And a management/marketing consultant to provide basic business-operation advice, pricing and inventory advice and sales and advertising advice

A good advisory group can make a tremendous difference. If you have professionals who handle your personal matters, they may be able to handle your business or provide referrals. Finally, your local chamber of commerce, trade associations, Rotary Clubs and library may also provide free...