When Starting a Business

Many people dream of starting a small business, something that will be just theirs and that they can build from the ground up. One fine example of this dream becoming a reality is the Macpherson family, who took all the things they loved and combined them into one incredible place: Foster Harris House, a bed and breakfast of sorts.

Making the business a success wasn’t easy for the family, but they stayed true to their dream and their goals throughout all of the ups and downs they experienced. They were also willing to change and grow their business as their own needs did the same. For example, they became parents soon after opening Foster Harris House and had to add in new services to start saving for their child’s future education.   

These people, though, are a shining example of what can happen if business owners open a business they love and then commit to sticking by it no matter what. It’s commonly cited that at least half of all small businesses fail within the first year. But more often than not, it isn’t so much the businesses that fail but the owners that fail them. Staunchly refusing to give up on a dream and to ride out the ebbs and flows of the business world is what it takes to be a success.

Other tips for giving any small business a great chance at success include:

·         Write a detailed small business plan, hopefully with the help of a lawyer AND a financial planner. Be flexible when it comes to following the plan. You don’t have to stick to it staunchly, but having set goals and a general course of action to follow can be extremely helpful during that stressful first year of being a new business owner.

·         Determine who your “target demographic” is and then market, market, market to that demographic. In other words, through research, figure out which types of clients are most likely to buy your products or use your services. Then, gear your marketing toward members of that demographic. Don’t be afraid to reinvent your brand from time to time or to try appealing to others as well as your original target demographic however. After all, the more people you can appeal to and sell to, the more money you can make.

·         Overestimate expenses. It might seem like you’re being a “Negative Nancy,” but it’s always smart to plan and budget for spending more money than you actually think you’ll spend. That way, if you go over, it won’t cause a problem. If you don’t, then you’ll have a nice little bonus at the end of your first year of business.

All in all, if you can follow these tips and stay focused on your goals, you can’t go wrong, and your little business has a great chance of surviving its first year and maybe even thriving.

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• Founders: Don't Let Your Ego Get in the Way of Success (entrepreneur.com)