Starting a Small Business: How to Start a Business

Taking your first steps to start a business can be daunting, but take heart. Many excellent websites and organizations offer step-by-step help to anyone starting a business. And while starting a business requires an investment on your part, the information you need is generally free.

Maybe you have an idea for an internet business or software startup, or you are starting a home-based business, need a business startup loan, business startup software, or just want to know the basics of how to register a business, incorporate a business or write a great business plan. Whether you are still in the idea stage of how to start a business, or you've already taken serious steps to starting a business, finding the RIGHT advice, resources and entrepreneurial communities will be vital to the success of your small business startup.

Here are four factors that improve the odds of success for anyone who wants to start a business:

People. If you can afford to hire employees or can bring in partners or co-founders when you first start a business, DO IT. Studies show that well-staffed business startups have better survival rates than solo operations. If this won't work for you, at least seek out experienced advisors. (The resources below can help.)
Startup capital of at least $50,000. Not easy, perhaps, but studies show that businesses starting with less than $50K have higher failure rates. That's just the way it is. The key is to have enough financing so your business can take root.
Training. If you can, attend business startup seminars offered in your area through a local Small Business Development Center (see below), or enroll in a college-based entrepreneurship program to learn the ropes before you get started. You might be the smartest geek in the world, but if you have no business sense, you're in trouble.
Home beginnings. To keep costs low, start a home-based business first. Businesses that begin this way and then move into bigger digs later have higher success rates.

Action Steps for Successfully Starting Your Own Business

The best contacts and resources to help you get it done

Get free counseling and advice on how to start a business

Thousands of small business counselors and mentors are available to help you through Small Business Development Center (SBDC) and SCORE locations nationwide.

I recommend: There are SBDC offices in every state, with a network of over 1,000 service locations at colleges, universities, vocational schools, chambers of commerce and other places, offering free help for startups. This service operates through the U.S. Small Business Administration (SBA). In similar fashion, SCORE will match you up with a volunteer mentor in your area for free one-on-one counseling. Or ask questions online and receive expert answers by email within 48 hours. This free email counseling service is hugely popular with startup entrepreneurs.

Visit the Microsoft Startup Center

It's something new from Microsoft. The Startup Center is a nicely-organized list of the key tasks you need to consider in starting a business, with help, resources -- and of course, information on how Microsoft products and services can help.

I recommend: Start at the Microsoft Startup Center home page. You'll see tabs at the top of the page covering key startup tasks. "The Rules" tab, for example, has advice on selecting a business structure, getting licenses, understanding tax responsibilities and buying a bar code. You can download a free business plan template and free small business accounting software.

Plug into an online community of like-minded startup entrepreneurs

Nothing's a better motivator than involvement with a community of other entrepreneurs who are starting a small business – and sharing the ideas and information they've learned.

I recommend: StartupNation is a "go-to" resource for starting a small business. This site offers helpful advice and support through online seminars, newsletters, radio spots and more. Of special interest: 10 Steps to Open for Business and Key Moves for Success sections. Startup Journal, The Wall Street Journal Center for Entrepreneurs, and E-venturing, from the non-profit Kauffman Foundation, both have loads of helpful articles on starting and growing a business. And OnStartups is a cool new community offering savvy ideas and advice specifically for software entrepreneurs.

Get expert help writing your startup business plan

You need a business plan to start a business. Here's where to get help writing it.

I recommend: Bplans.com is the only address you really need to create a great business plan. This super site from the folks who publish Business Plan Pro, the best-selling business plan software, is chock full of helpful business plan info, from sample plans (60 free; hundreds more to purchase), business planning tools, ask the experts and more tools and tips for how to start a business. Find more business plan software at Business.com.

See the latest in technology for small business startup

Go online to get the latest tech news and information to help with your small business startup.

I recommend: For depth of coverage, independent opinions and a "we get it" sensibility to what startup entrepreneurs need, Small Business Computing can't be beat. Sign up for the free Small Business Computing newsletter on the home page. Great coverage of News and Trends, Business Software, Hardware & Equipment, Online Marketing, Buyer's Guides and Small Business Essentials.

Try franchising opportunities as your route to starting a small business

If buying a franchise is what you have in mind, go straight to the franchising experts to start a business.

I recommend: The International Franchise Association, FranchiseSolutions.com and Franchise.com can help you find the right franchise opportunity. Check franchise opportunities on Business.com as well.

Tap key services online for starting a small business

To select and register a corporation or other business structure, find financing or get your business logo, easy online services are available to help.

I recommend: Going with the quick online solutions will save you time, money and aggravation. For business structure (corporation, LLC, etc.), The Company Corporation can help. See LogoWorks for a business logo fast at a great price. Line up your small business startup financing options at Businessfinance.

Get online startup and training info from the SBA

The U.S. Small Business Administration (SBA) website offers a wide range of helpful information and resources for starting a business.

I recommend: After a site makeover in 2007, the SBA consolidated it's business startup help into a section called Small Business Planner. Some of the most helpful items include Is Entrepreneurship for You?, Do You have What it Takes?, Checklist for Starting a Business, Starting a Business FAQs, and a Glossary of Terms. The SBA also offers a good selection of about 25 free online courses that are self-paced and take about 30 miniutes to complete. Small Business Primer: Guide to Starting a Business is one of the newest offerings.

Got time? Get a business education

Business owners who complete business education courses or degrees have a greater chance of success at starting a business.

I recommend: All Business Schools is an online directory of college business schools. You can search the site for those offering entrepreneurship programs.

Tips & Tactics for Effectively Starting a Business

Helpful advice for making the most of this Guide

The most common reasons for failure within the first few years include competition, mismanagement, high rent and insurance costs, high debt, inability to get financing, loss of clients and difficulty with collections.
If you're ready to take the risk of the risk of starting your own business, research your business carefully before taking the plunge. Even though business failure rates aren't as high as once believed, aspiring entrepreneurs still need to do their homework.

Starting a Small Business : Starting Your Own Business on Your Terms

Guide to Resources for Starting a Business

Starting a Business: First Steps