Before you start a small business

What I Wish I’d Known Before Starting a Small Business

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Richard Armour, a humorist from California, is said to have coined the phrase: “Most people’s hindsight is 20-20.” It comes from the way people describe good vision or seeing things clearly.  In today’s blog, we’ll talk about a few things many successful small business owners wish they had known, before starting a small business.

 

Thoroughly investigate the type of business you want to own:

You might think that there is a giant need for the type of business you want to start, that everyone would love to own one of your widgets or hand-knitted stuffed animals. But is this a reality? Ask around, try a few test-sales, investigate similar companies.

Investigate the location of where you want to put your small business. If, for instance you want to start a restaurant selling gourmet tacos, but there are 2 other taco restaurants on the same street…is it the right place for your small business?  What about accessibility? Can people get to your business easily? Will you be able to offer delivery, or curb-side options?

Many entrepreneurs wish they had investigated the type of business, location, and overall effort it would take, before they began their small business.

 

Spend the time and money to set up your business correctly:

It’s important to get all of the legal and financial structures in place before you open a small business. Spend the time and money to get everything set up correctly the first time. Dot your legal “I’s” and cross your financial “t’s” with the best experts for your small business. Purchase the right equipment and have in place the experts you will need.

 

Understand that great help will be hard to find and keep:

It’s not just a cliché that “good help is hard to find” it really is difficult for any business. Prepare for the fact that it will be difficult to hire and keep good people. Some industries have higher turnover, others aren’t able to offer a wage high enough to motivate employees to stay. Have a plan for the times you can’t get help; maybe you have family you can bring in, close friends or even eager, happy customers. Be ready to be flexible with your hiring strategy to make it work.

 

Prepare for Stress:

Many entrepreneurs have reported that they knew starting a small business would be stressful, but they under-estimated just how stressful things could get. It helps to keep reminding yourself that the most stressful days are temporary, that in the long run, the work and frustrations will be worth it.  Pre-plan time to get away from your business. Work in vacations or a day off a week. Find a mentor to talk to, or even a business counselor to keep you mentally on track to run your business.

Other entrepreneurs told us it helped to keep a part-time job while they were setting up their new business. Part time work helped them meet financial obligations of the new business and gave them peace-of-mind while getting started.

 

Work smarter not harder:

Yes, another cliché, but many successful business owners tell us that working themselves into burnout did nothing to improve their small business. As an entrepreneur, remember to delegate as much as you possibly can. Get automated processes for your business which could include computerizing the order process, hiring a company to do your payroll, or purchasing machines to do tasks.

 

Take time out for education:

Simple things like spending an hour a week to further your business knowledge can go a long way in making you succeed. Free programs – like those we have available at Paris SBDC – are extremely beneficial and take very little time. In fact, check out our calendar HERE to see some of the programs and education available right now!

 

Be prepared to adapt:

You may have five or six planned product lines, but only two sell regularly. Be prepared to adapt your business to cater to those bigger sales. Maybe one of the special types of yarn that you use for your stuffed unicorn is no longer available – be prepared to substitute and adjust pricing as necessary. Have a plan for adapting to crazy situations – like a pandemic.

 

It will get lonely:

This one surprised us – but nearly every entrepreneur and small business owner surveyed last year admitted that building a business is a lonely endeavor. Unlike working for a company, where you have co-workers and a sense of community, suddenly every decision and responsibility falls on your shoulders. For some, that can be a heavy, lonesome burden to carry. Here are some tips to help combat that loneliness:

  • Consider a co-owner or partner.
  • Create a safety net of people: maybe your family, spouse or good friends.
  • Don’t hesitate to get outside help, advice or counseling.
  • Network to talk to other entrepreneurs. Sometimes it just helps to hear that others are having the same struggles you are having.
  • Take some “me time” away from the business and with people you enjoy.

 

It is incredibly rewarding:

Making your own business successful is incredibly rewarding. You will have the flexibility, independence and eventually, monetary rewards you’ve been hoping for. Watching your business grow and do well gives you a sense of satisfaction and fulfillment. Over half of the entrepreneurs surveyed by Manta said the top reward of owning a company is having the freedom to control your own destiny.

 

For additional information on owning your own small business and for ideas of how to start a small business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

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Money Smarts

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Test your Money Smarts in this entertaining way for personal growth!  Earn certificates of progress in this program by the FDIC.

Scan the QR Code for 14 Self- Paced Learning Games!

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Learn about everyday Financial Topics, such as borrowing basics and credit scores.

Get Ready to Borrow Money  – Have you heard about the 5 C’s lenders look for Capacity, Capital, Credit, Character, Collateral

How to Calculate Your Net Worth 

 

Watch our Training Calendar for Money Smarts for Business 2022!

Personal credit impacts business credit. For a start-up company, credit worthiness hasn’t been established; lenders will look at the credit scores of the business owners.

 

Life’s unexpected events, the pandemic, not only impact personal but household financial goals. Manage your credit scores Free Credit Reports and  Credit-Repair tools.

Mid-Year Business Check

Mid-Year Check-In for Small Business

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If you are anything like us at Paris SBDC, you’re wondering where the first half of the year went. And while our fiscal year will be wrapping up soon, many small businesses run on a calendar year. So whether you are at mid-year or end of year, it’s a great time to stop and do a brief check-up on the tasks and goals for your small business. A mid-year check-in should be viewed as a positive task, meant to evaluate your business and give you time to change or improve a few things before the end of the year. Here are a few things you can do for your check-in.

 

Take the time to sit down and evaluate your business plan:

Depending upon the type of industry you are in, you may need to plan this task off-site. A day or two retreat sounds great, doesn’t it? If you are too involved or busy to take a few days for evaluation, cut it up into parts and perhaps leave for ½ a day so you can focus. Whatever works best for you, put it on your calendar and plan for your review.

 

How is your business doing financially?

Time to run a few reports! It is important during the ½ year check-in to see where you are financially. Are you breaking even, making great money, or are you losing money?  Here are a few reports to look at:

  • Cash flow
  • Income
  • Expenses
  • Profit
  • Taxes
  • Operating expense

These statements or reports will give you a clear “Number” for how your business is doing. Once you have this information, it’s time to consider where you are as a business and as a boss. Will you be able to meet your financial obligations by the end of the year? Are you where you expected to be, financially, by this time of year?

 

What does your company culture look like?

Consider your employees: Are they happy? How is your turn-over and how is the energy with your team?  Check on the following:

  • Have you kept the promises you made at the beginning of the year regarding wages, feedback and training?
  • How is your employee productivity?
  • How connected and motivated are your team members?
  • Do you need more/less employees?

 

How are your processes?

You’ve heard the saying “If it isn’t broken, don’t fix it.” This is a great thing to remember with your processes. Take a look to see if you and your team are as efficient as possible. Would further automation help make everyone’s job easier? Perhaps those new iPads you’ve invested in for customer orders are slowing everyone down and they need further training. Take a look at the “things” everyone is doing and decide if the tasks are helping or hindering your business. Are there things you can contract out to do like payroll or marketing?

 

How do your customers see you?

Is your business perceived as positive – a great addition to the community in which you live?  Are you spending enough time networking, advertising and participating in outreach programs? There are a few ways you can discover if your customers are seeing you in a positive light – here are some ideas:

  • Customer Retention: Are you keeping customers? Do they come back for more?
  • Survey: Ask customers how you are doing.
  • Reviews: Look at your online reviews – what are people saying and are you hearing good comments?
  • Increase: Have you had an increase in customers and/or sales.

 

Look at what’s next:

Are you on target with your business plan and where you wanted to be by midyear? If not, what needs to be changed or adapted? If so, what do you want to accomplish the second half of the year? Here are some good questions to ask yourself:

  • What obstacles am I facing and what do I need to watch for this year?
  • How are you going to accomplish your goals this year?
  • What resources do you need?
  • Who can help you stay on track?

 

Give yourself credit!

Are you having fun? Are you accomplishing at least a good number of your small business goals? Don’t forget to celebrate your successes! You are still in business after a pandemic, price increases, and inflation (things you cannot control); give yourself credit for your own perseverance! Even if it is something as small as breaking even this quarter, make a point to celebrate your success!  Don’t forget that small businesses are the true heartbeat of America!

 

For additional information on how to do a mid-year check-in for your small business, or on ideas of what to look for and how to improve your small business, please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.

 

Veteran Owned Business

Help for Veteran Owned Small Business

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What should I know if I’m a veteran and own a small business? 

With over five-million employees, veteran owned businesses have a huge impact on the U.S. economy. If you are a veteran and have already started a business, then the hardest part is already in motion. If you are contemplating owning your own business, the good news is there are resources available to help veterans (and their spouses) get started.

Additionally, the government offers assistance. They post an extensive list of federal regulations, qualifications, and other information that, honestly shouldn’t take months to read, but may. Source out what you need at the following link and like eating an elephant, do it one bite at a time. Before you realize, you will be full of knowledge. You can check out that list of regulations HERE: Code of Federal Regulations

 

How does the SBA help veteran owned small businesses?

The small business veteran’s enhancement act of 2018 directs:  “U.S. Small Business Administration (SBA) to give certain veteran-owned small businesses (VOSBs) access to federally owned surplus personal property, pursuant to a memorandum of agreement (MOA) between the SBA, U.S. General Services Administration (GSA), National Association for State Agencies for Surplus Property (NASASP), State Agencies for Surplus Property (SASP), and the U.S. Department of Veterans Affairs (VA). Each organization plays a role in supporting VOSBs who seek donated property for use in their small businesses.”

With nearly the entire alphabet used for acronyms, remember the letters aren’t meant to intimidate but are used to shorten lengthy names of agency and departments. This should help cut down months of reading the documents they provide. If you are connected to the SBA, and Paris SBDC, they can further explain the documents and save you time.

Per the Office of Veterans Business Development: “The Office of Veterans Business Development’s (OVBD) mission is to maximize the availability, applicability, and usability of small business programs for Veterans, Service-Disabled Veterans, Reserve Component Members, and their dependents or survivors. OVBD is SBA’s liaison with the veteran’s business community; provides policy analysis and reporting; and is an Ombudsman for veteran entrepreneurs. OVBD has a number of programs and services to assist aspiring and existing veteran entrepreneurs such as training, counseling and mentorship, and oversight of Federal procurement programs for Veteran-Owned and Service-Disabled Veteran-Owned Small Businesses.”

Read more about the OVBD at: Office of Veterans Business Development

 

What are the advantages of a veteran-owned small business?

There are many advantages veteran small business owners have. Only a few are listed below:

  • Government Contracts: In coordination with the SBA, veterans are assured that a fair proportion of the total purchases and contracts for property, services, and construction for the Government in each industry category are placed with small business concerns; or assured that a fair proportion of the total sales of Government property is made to small business concerns.
  • Skills: The knowledge and abilities you acquired through your military service is looked at as an advantage by banks. When this is compared to how a non-veteran owned business, you appear more appealing on paper. Lending agencies know that it may take years for other new business owners to learn many of the skills you already have.
  • SBA Loans: Through the Veterans Advantage loan program, businesses have access to upward of five million dollars with ten-year terms available through the SBA 7 (a) Veterans’ loan.
  • Grow with Google: Identify your business with Google as veteran-owned and you will gain access to marketing tips, lessons, and can be connect with global markets.
  • Tax Incentives: Businesses that hire veterans are allowed a tax incentive. See your tax advisor to take advantage of these.
  • Acquire Surplus Equipment: The government offers opportunities to veterans to acquire surplus equipment. However, before dreaming of that camouflage hummer you need to start deliveries of those special pecan sandstorm cookies your business makes, check the regulations.

 

What is a good small business idea for a veteran?

The founder of Pepperidge Farm, Margaret Rudkin, needed to feed a sickly child with allergies to many processed foods. With skills as a baker, she sold bread on the street and made nutritious meals for her child. Her small kitchen baking efforts grew into a business as she added more products. Eventually she sold the company for millions. This kind of problem solving has built many successful companies.

Like any prospective business owner, you should develop guidelines with a solid business plan. Contemplate your interests and what your skill sets are. Find things you do that others cannot or look for opportunities, like repurposing government property into a useful civilian product if regulations allow.

Often the best business ideas are created by discovering what people in your community need or are missing.

 

What is the Texas Veterans Commission?

The Texas Veterans Commission is an advocacy organization for Texas veterans, their families, and survivors.  Per their website they post the following philosophy: The Texas Veterans Commission will aggressively advocate for Texas veterans, their families, and survivors.

Here is a short list of what the TVC provides:

  • Quality Service:
    • Claims Representation and Counseling
    • Veterans Employment Services
    • Education for Veterans
    • Veteran Entrepreneur Programs
    • Health Care Advocacy
    • Veterans Mental Health Program
    • Woman-Veteran Programs
    • Fund for Veterans’ Assistance
  • Training the veteran workforce
  • Networking ability – to connect veterans throughout the state
  • Coordination of efforts between federal, state and local government as well as private organizations that provide veteran services
  • Veteran Advocacy to maintain a higher quality of life

Discover more about TVC HERE: Texas Veterans Commission

 

Paris SBDC has resources for Veteran’s:

Check out our Veteran’s Resource Page for information on New Veteran-Owned Business

 

If you are a veteran and you own a small business, or if you are thinking of starting a small business, we can help!  Please contact us at the Small Business Development Center – SBDC – Serving Paris area:  Lamar, Hunt, Hopkins, Delta, and Red River counties.