Devoted to Managers and those that seek to improve their management skills

Have you been getting that business itch? Do you watch others in business and feel that you could be as successful as they are? If the answers to these questions are yes, then here are a few tips on managing from before you start.

The key here is to see how you relate to the several things I talk about to see how you may do if you decide to go ahead.

There have been studies and statistics that do give some guidelines as to the percentages of how well certain people will do.

Here are several:

MONEY

One of the reasons money is important isn't so much the amount you have but having enough to live on during the first year especially above what you need for the business. That is an ideal situation, but it can help. In the first year most businesses don't generate enough profits to live on, it's hard enough making enough to pay business bills.

While I have seen some advisors say that the best scenario is to have 9 months personal expense money along with 6 months in start-up funds for the business. While that would be very helpful, to me it would depend entirely on what type of business you're getting into. I've run service businesses that have very little overhead and was able to pay the bills and grow the business successfully from the first day of the business operatios.

Of all the things listed here for starting a successful business, this is the least important in my estimation.

Accounting

One state did a study a couple of years ago to determine if bookkeeping was an important part of success; the study included 5,000 businesses. The results revealed that 70 percent of successful business owners had a basic understanding of accounting, in contrast to 10 percent of failed owners had the same comprehension.

In other words not knowing anything about accounting meant a 9 out of 10 chance of failing. While a basic understanding put the odds up to 70 percent.

Now to me this doesn't mean at all that you have to do the work, just that you understand the importance of it and why you need good records.

Don't try to start too big.

One of the key factors in business success from the startup aspect is that most people started in their garage, basement, extra room or a table in the dining room. Keeping cost low was a part of their success as they then could concentrate on getting business and serving those well that they did get.

Planning your business

Developing a comprehensive business plan is essential to continued success. I read recently where someone said that business owners weren't risk-takers, and my first response was that they didn't really know what they were talking about. But in the context of starting a business, what they were saying was that they weren't flying by the seat of their pants just hoping something would come along or happen.

The best way to put it would be to say that they were calculated risk takers who knew why they were in business, the steps they were going to take for success and they kept working their plan hard day after day to make it happen.

The most important thing about the plan is it should tell you why you're in business and why you can serve a market better and differently than others. That, more than any other thing listed here is what will determine your success!