How do you go about starting your own small business?

October 12, 2009 by admin · 4 Comments
Filed under: Small Business 
business
Conniefly asked:

My Mom and I want to start a cake decorating business. She is self-taught and has been decorating cakes for almost 30 years for friends and acquaintances. She has business cards out there and gets calls, but she can’t over do it because she works during the day. She can’t start a business out of her house because, legally, she has to have a seperate kitchen. I have learned the trade over the past few years, but I can’t quit my job either unless we’re making good money. It’s making that daring transition that is making it difficult. Also, what is best way to present your potential business in order to get a good loan for it?
Niether of us have any schooling for business. Does this matter?

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Comments

4 Responses to “How do you go about starting your own small business?”
  1. Joe C says:
    October 13, 2009 at 12:03 am

    I have a friend that knows a lot about this, he and is wife.

    Links below. Joe C

  2. tomhunter101 says:
    October 13, 2009 at 8:33 pm

    Hey,

    This kind of business really should be started on a shoe string..it will be slow to start and there is no need for the pressure of a large loan. I know someone who does this from home and it works very well.

    Tom owner of wealthymarketer affiliate business tomhunter101

  3. Bleeble Blabble says:
    October 14, 2009 at 3:58 am

    Well first off I would like to say you should absolutely do this. And of course you should be smart on approach things, but when people approach things, it will always work out. While approaching to obtain a loan, I know companies will want to see that you are truly a real company, they will ask for proof. Usually opening an ad or such in the newspaper is the trick. They will ask for additional paperwork, which im not too knowledgable on. I will say go to a bank to get started. They are all ready to hand out a loan. Try and make sure the loan doesn’t have fees, and also a fee in which if you turn to another bank to get a lower interest rate, they can charge you anywhere from a $1000-$10000. You will obtain a loan, the hard part is obtaining the right one.

    I would suggest you not to quit your normal job right now, but if you have sick days or vacation days, i can suggest you to use em in a bundle. So you can get your new business anchored. It is all about advertising in the right areas. If you’re just starting out, I would say put your name in a mailer, so they send it out to thousands in the neighborhood. Put your name also in the neighborhood newspaper. People want to see if you’re a clean and fun company, and once they realize this, they will come regularly to obtain cakes.

    Like i said before, be smart while approaching this. Starting a new business is not the easiest thing, and it takes time, and a bit of luck as well. But if you need in any help, i would be willing to help you out. I would be willing to build you a quality website for free, you would just have to pay for the hosting fees which are less than $50.

    my email:

    good luck Bleeble Blabble

  4. edthespartan says:
    October 14, 2009 at 5:11 am

    Step one is to define your core customers – are they people looking for wedding cakes, cakes for corporate events, birthdays/anniversaries, etc.? You may be targeting more than one customer group. For each, define them as best you can: geographic location, income level, gender, etc.

    Next, identify your competition. Who else is serving this market now? Where can you create a competitive advantage against them? Price? Quality? Turnaround time? Convenience (location, ability to order online, etc.)? If you can’t identify a competitive advantage against each of your competitors, you need to rethink your product or scrap the idea.

    Then, based on your knowledge of your customer and competition, work through the “4 Ps”:

    Product: Again, will it be just wedding cakes? Other types of cake-based desserts? Special flavors or ingredients? Very elaborate designs vs. more standard fare?

    Price: What price point do you need to (a) cover your expenses, (b) earn a fair profit relative to the money, risk and effort you’re putting into the business and (c) remain competitive with other companies?

    Place: (a) Where will you produce your product? If you deliver, what is your geographic region? (b) Will you sell from your own storefront? Through other retailers? Online? At special events like bridal shows?

    Promotion: How will you advertise your product? Big hint here: for weddings & similar very important events, word-of-mouth, a.k.a. referral-based sales, are huge. People will ask friends who they used long before they respond to a newspaper or yellow pages ad. What do your customers read? Where do they hang out?

    Regardless of whether you go for a loan or not, you’ll want to put together a business plan, if only to confirm for yourself that you’ve thought through the marketing, logistics and financial/tax concerns. Related to this, I strongly recommend putting together a 12 month Revenue & Expense forecast. Based on sales projections, what will you earn each month and what will your costs be? This is extra helpful for businesses with seasonal fluctuations like yours. edthespartan

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