How to Run a Small Business

Wise Tips for Launching a Business

compiled from an article in USA Today
by Laura Petrecca

Thea Zagata says there is one area that is by far the most challenging when launching a business: going it alone.
"The hardest part is that there's no mentor," she says. She has to make all the decisions. USA Today reached out to small-business experts for advice about launching a venture.

Here's their quick words of wisdom:

Have a written business plan.
"This is essential for you, even if you are not going for financing," says small business consultant Edward Rosenfeld. "You need the discipline of a road map."

Conduct a test run while employed (if possible).
"It's ideal to start a business while you're still working because you have an income," says Sara Blakely, founder of hosiery empire Spanx. She was working full-time selling fax machines when she launched the company.

Scrutinize any potential partners.
"It's as important as a romantic relationship or a marriage," says Robert Tuchman, author of Young Guns, The Fearless Entrepreneur's Guide to Chasing Your Dreams and Breaking Out on Your Own.

Get up to speed on business financials.
"I can manage my own money," says Zagata, but running a business is is a "completely different story. Understanding revenue and profits was completely foreign to me." To get up to speed, she took a class on business accounting. That financial know-how is a must for any small business owner. Tuchman says: "The most important thing is keeping on top of your numbers, because at the end of the day that's what your business is going to be valued off of."

Plan for extra expenses.
Business comes with all sorts of unexpected—and expensive—surprises. "There's always something else," Zagata says. She recently had to pay a web designer to fix her online shopping cart checkout, which set her back $300. "You have to be prepared for those kinds of things."

Differentiate yourself.
"Always ask yourself, 'Why/how am I different?' and make sure you can convey that to your customer in 30 seconds or less," says Blakely.

Trust your gut.
Instincts should "empower you, not intimidate you"—even when they seem different than what anyone else is doing, Blakely says. "Too often people do things the way they have always been done, and that's not always the best way."

Keep retirement funds separate.
"Don't cash your 401(k) or cash value life insurance," says Rosenfeld. "These are asset-protected in the event of bankruptcy, and there are heavy penalties to pay if you cash in. Borrow on them if you must, but keep them intact."

Stay strong.
"It took me two years from the time I had the idea for Spanx until the time I had a product in hand ready to sell, Blakely says. "I must have heard the word 'no' a thousand times... If you believe in your idea 100%, don't let anyone stop you."

The Small Business Administration has lots of free advice on making up a business plan and how to map out your ideas. Check their website for information on how and where to start.

For help with advertising, marketing and information on how to create a business image, there's a good article located here written by Karen E. Claus, University of California, San Francisco, Institute of Signage Research with links to other info such as the value of professional business appearances and their related costs.

The Chamber can help with referrals to professional business owners that mentor young businesses starting out, the advice of such mentors is an extremely valuable tool for anyone wanting to get started in the right direction. Their years of experience can make a huge difference and keep you from making the costly mistakes so common with first-time ventures.