Questions about small businesses

Vance

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Hi everyone,

I have this cool idea about a small business for one or two years now... but I never have this gut to make a move until one week ago or so. In fact, my girlfriend's dad already lend me the funds but I respectfully rejected because I want to start a small business from scratch or with my own hands so I can learn faster and better in that way. I also don't want to be in 'sticky' situation if my relationship with Nas isn't working out, I am sure you know what I mean.

Oh sorry, I am rambling on... back to this topic, I'd like to know where and how do I start with all of this small business situation? Taking the business management courses at college? Is that a first step? And what information that I should look for? I already have a good researching skill but I don't know where to start or what 'words' I should use to google it to find the informations and such. If you guys want me to explain bit more, please ask... Anyway I would like to know where and how do I start with this small business thing?

Many thanks in advance!
 
You need a business plan. You need to have on paper for yourself how you will operate your business to earn a profit. Many businesses don't have this in mind and they die really quickly because they don't stick to a profitable business model.

Otherwise, it's basically the school of hard knocks -- try to make money, make mistakes, learn from the mistakes, and try again to make money. Business schools will give you a safe harbor to learn the basics, but the real work will only happen when you're risking real money from your own pocket out there.
 
Dennis is right. You need a business plan. You really need to research the kind of business you are interested in, and the available market.

SCORE can help you develope a plan. They are retired business executives that offer free advice. My hubby used their local services when he bought his business 11 years ago. They were very helpful.

http://www.score.org/
 
Then having done all of the above (what Dennis and Reba said) , Mag, contact the SBA (Small Business Administration, a Federal agency) for a business loan. They have many programs, including loans to minorities. Last I recall, the loan rate was somewhere around 3%....can't beat that. For the Riverside area, the closest SBA officer is in San Diego but he comes to Riverside once a month; just make an appointment to see him. This is after you have made a business plan, model, etc.....he will want to see that as it will weigh in getting the loan approved or not.
 
Dennis said:
You need a business plan. You need to have on paper for yourself how you will operate your business to earn a profit. Many businesses don't have this in mind and they die really quickly because they don't stick to a profitable business model.

Otherwise, it's basically the school of hard knocks -- try to make money, make mistakes, learn from the mistakes, and try again to make money. Business schools will give you a safe harbor to learn the basics, but the real work will only happen when you're risking real money from your own pocket out there.
Thank for great advice! Now I know what is the first step for this small business. But of course, I am not sure where to start with this idea though, I guess it eventually will hit me and draw me into write the plan on the paper.

Reba said:
Dennis is right. You need a business plan. You really need to research the kind of business you are interested in, and the available market.

SCORE can help you develope a plan. They are retired business executives that offer free advice. My hubby used their local services when he bought his business 11 years ago. They were very helpful.

http://www.score.org/
To my understanding that this 'market' is already quite popular in America & Europe. I want to grab that opportunity while the market is soaring. Actually, it has been soaring for several years now.. so far, it hasn't show any sign of withering. I already bookmarked that link you provided in other topic and plan to research someday. I guess that business plan is the first step to establish the small business. Once again, thanks, Reba!
 
Tousi said:
Then having done all of the above (what Dennis and Reba said) , Mag, contact the SBA (Small Business Administration, a Federal agency) for a business loan. They have many programs, including loans to minorities. Last I recall, the loan rate was somewhere around 3%....can't beat that. For the Riverside area, the closest SBA officer is in San Diego but he comes to Riverside once a month; just make an appointment to see him. This is after you have made a business plan, model, etc.....he will want to see that as it will weigh in getting the loan approved or not.
I don't live in Riverside but that city is only approx 30 mins away from where I live. I definitely will take your advice and make an appointment to meet that SBA officer in Riverside if there isn't any service in my local area.

But I would like to know if it is good idea to make an loan even if they will approve my proposal?

Thanks for this advice too!
 
First you start with a very very very small business such as this...

http://www.americanhotdogcarts.com/

ProZk%20hot%20dog%20cart.gif


Then you can save money....
And expand your business, maybe own a small video store....
Rent a room at the mall or somewhere.

This guy is achieving... read about him.

video.JPG


Brian Curneal is part-owner of New Release Videos, 1331 Grand River. The store opened 2 months ago and features daily specials on video rentals.
Video store offers variety of films despite small space, caters to college students

By JEFFREY BALDYGA
The State News

The two-room area of a strip mall New Release Videos occupies doesn’t exactly measure up to the larger, corporate Blockbuster Video and Hollywood Video stores not more than a half-mile away, co-owner Brian Curneal said.

The 1,700 square feet of space at 1331 E. Grand River Ave., next to Citizens Bank and Beaner’s Gourmet Coffee, is the perfect size for the store that opened earlier this year, Curneal said.

“I don’t need the same amount of space the larger stores do - I don’t carry as many older videos as other stores, so I don’t need to find room to shelve them,” he said.

The idea behind the store is that customers will find what they’re looking for in much less time than in some of the larger stores in the area such as Blockbuster and Hollywood Video, Curneal said.

“This store is more customer-friendly than the bigger stores,” he said. “This makes it easy for the customer to get in and out.”

Aside from new movies, New Release carries many independent films, Curneal said.

“We carry the independent videos and unrated versions that Blockbuster and Hollywood won’t carry,” he said.

However, Curneal’s competition said despite their size, they are still accessible to customer’s.

Blockbuster Communications spokesman Blake Lugash said his stores are set up to allow customers easy access to desired videos.

“Some of our newer stores have new releases shelved in the inner section and we base this on what the customers’ needs are,” he said.

Hollywood Video doesn’t have any set size for stores, said Michael Bemis, manager of the East Lansing store, 2786 E. Grand River Ave.

“The newer stores are smaller than the older ones,” he said. “We are finding more efficient ways to use floor space.”

Lugash said Blockbuster carries fewer independent films because the store is tailored to provide what is popular in the area.

Bemis said most Hollywood Video stores generally don’t carry a lot of videos made by independent companies or filmmakers, but the East Lansing store is an exception.

“We have what’s called the ‘First Rights’ section, which is all independent videos,” Bemis said. “We carry more than other Hollywood Video stores because we are tailored to the college audience.”

Curneal said New Release Videos carries a limited selection of children’s movies because it caters to a college crowd.

“College kids don’t want to watch cartoons,” he said. “I have 1,000 dollars invested in children’s videos and not one of them is rented out.”

Thirty-year-old New Release customer Lisa McNamara-Reid, who has been a customer since the store opened, said although she partially disagrees with the selection, the store slowly is getting better.

“I think the store has improved since it opened,” she said. “There are now more videos to choose from, but I have a 5-year-old son, so I think it needs a better children’s section.”

Curneal said the store has a policy requiring all employees take home movies as soon as they come in.

“This enables them to always know what they’re talking about when a customer asks a question,” he said.

Since the store opened in February, Curneal said business has been up and down, which he attributes to many different factors.

“Right now business is a little slow because most students are home for the summer, and 80 percent of our 1,400 members are students,” he said. “The construction on Grand River Avenue has also hurt business somewhat because eastbound drivers cannot make left turns into the parking lot.”

Although nearby Blockbuster and Hollywood Video stores present strong competition for the independently-owned store, East Lansing City Council member Beverly Baten said the store should prosper.

“As long as the owners have done their homework and know who they are catering to, they should do all right,” Baten said. “Any time an independent business opens in East Lansing, the city welcomes it with open arms.”

Then after that....
After you save some money,, then you can own a bigger business...

I read this business opportunies in the classifed ads in newspaper... Somebody want to sell their business store.

Business For Sale -
RESTAURANT. Southaven. High traffic location. Turn key operation. $325,000. Cara O'B*****, 901-3**-****. Bob L**** & Assoc., 662-8**-****
Start Date: 03/13/2005 Stop Date: 03/13/2005



So that is how businessmen do.... And of course you gotta take
some college, you can go to a community college for 2 years to learn
some things, especially marketing and how to sell and know about stocks.
And know how color and light attract customers. :)
 
Mag, in that case, if you are only 30 minutes from SD, then go there cuz I'm sure office hours in SD are 5 days a week.......instead of just one day a month in Riverside.....
 
Tousi, Sorry If I am not clear, I live approx 30 mins away from Riverside, not San Diego. In east area of Los Angeles. In any case, thanks!
 
Tousi said:
Then having done all of the above (what Dennis and Reba said) , Mag, contact the SBA (Small Business Administration, a Federal agency) for a business loan. They have many programs, including loans to minorities. Last I recall, the loan rate was somewhere around 3%....can't beat that. For the Riverside area, the closest SBA officer is in San Diego but he comes to Riverside once a month; just make an appointment to see him. This is after you have made a business plan, model, etc.....he will want to see that as it will weigh in getting the loan approved or not.
I don't believe the SBA directly grants loans to businessmen now. They used to. Now, you need to get the actual loan from a bank or credit union, but the SBA will guarantee your loan. The SBA usually requires that you prove you have a worthy business plan by going thru an organization such as SCORE.

My hubby did get an SBA loan 11 years ago. Last year he wanted to get another loan to improve his business. SBA told him that they quit doing loans. They said that he had to get the loan from a bank.

But you can contact the SBA and check. They might have changed their rules again since last year.

http://www.sba.gov/financing/sbaloan/snapshot.html
 
I suppose your'e right, Reba cuz its been years since I got that information; however, the low rate loans (the agency guaranteeing it) for minorities might still be intact.......
 
Top of your priority list: Business Plan. It is well-known. But first---
-List your answers to: how far you will go to pursue this... how much are you willing to lose before turning some profits... WHY do you want this business?
then...
-Get a book about your "biz"... Self-help type of book. Written by a person who ALREADY went into that field that you are interested in.
-Read "Poor Dad, Rich Dad" and other books by the same author (if you are interesting, I cld pm you the books that were recommended to me about small biz by a fellow deaf businessman).
Then....
When you are done wiht your biz plan-- take it to a bank. Your home bank(the one you use) may be a good place to start (since they already "knew" you.)
There are federal grants for 'disabled' people taht are interested in starting up their own biz-- check those out.
Be prepared to spend your money out of your own pocket.

And you are open for business!
 
Thought about being self-employed but I later found out it was too much to do. You know... budgeting, advertising, operations, etc, etc. they just take too much of my time.
 
Mag, can we assume that you know quite a bit about the area that you want to go into? Do you mind if I ask what type of business you are trying to start? Anyway, I was talking to a friend of mine who owns his own business and he said that a good way to start was to get an internship in the field of your choice where you can learn the ins and outs of that business, learn what works and what doesn’t, etc. He said that he learned a lot about what wouldn't work while in his internship and that saved him from trying those things when he started his company, thus saving him time and money. He also said a lot of research is key.
 
tekkmortal said:
Thought about being self-employed but I later found out it was too much to do. You know... budgeting, advertising, operations, etc, etc. they just take too much of my time.

Unless you have family members who you can rely on to help ya.
I got a friend who own a business... and yeah he works hard...
but he is rich.
 
Ethereal said:
Mag, can we assume that you know quite a bit about the area that you want to go into? Do you mind if I ask what type of business you are trying to start? Anyway, I was talking to a friend of mine who owns his own business and he said that a good way to start was to get an internship in the field of your choice where you can learn the ins and outs of that business, learn what works and what doesn’t, etc. He said that he learned a lot about what wouldn't work while in his internship and that saved him from trying those things when he started his company, thus saving him time and money. He also said a lot of research is key.
Ooh, that does represent a excellent idea to learn how to run a small business. Concerning about what type of business.. I will pm you and discuss it over.
 
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