You might be one of these unprepared people. Lets face it. We are trained in our K-12 school system to be employees. Our school system was created to supply workers for the industrial revolution that could read, write, and do math in order to work in the factories that were powering our economy at the time. We were not trained to think outside the box. We were trained to be compliant “worker bees”. We also don’t teach financial literacy in schools. A student is lucky to get out of high school with one business class. That will not prepare you to start and run a small business. Most entrepreneurs don’t even know the basics of accounting. A well-rounded practical education for a potential small business owner should include: Accounting, Finance, Marketing and Management training. These skills are vital in order to run a successful small business venture. If you have never run a business before, you are at a disadvantage in all areas. Get help from knowledgeable advisors. Visit with a Small Business Development Center, or SCORE Advisor. It’s Free!
Bindrup’s Advice: Use business advisors and mentors to help you along the way or don’t quit your day job.
The bank and potential investors don’t care about how much you "believe" in your new business. They know that most small business owners are delusional about the level of profitability they foresee in their business. One of the questions from a potential investor is "Have you sold anything yet?" The only way to prove that your business concept is valid is by sales. In business, nothing happens until somebody sells something. Your constant goal as a startup is to focus on sales. Forget about everything else. A small business owner should spend all business hours on sales. Handle accounting and other administrative tasks after business hours and on weekends. Focus on driving sales. It is the only way that you can prove value in your business. If you cannot prove that there is demand for what you are selling in the first six months of operations, your business is sunk. It sounds appealing to a potential investor that you have generated $15,000 in sales during your first month in operations, or that you have sold 124 units out of the trunk of your car before you even got the business going. Sales prove value.
Manage your Small Business better