Before Starting a Business

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Before you start your business you must plan it out.

People often shy away from the planning stage when it comes to starting a business. And that is one of the biggest mistakes. When you are successfully planning for your new business the process takes all together anywhere from three months to two years.

For instance, recession is a perfect time for people to start that planning process, and not the time to open a business without planning.

When economic downturn takes place, opening a business will be a far cry from solving your problems, as it requires money, time and hard work.

To start you off with a basic plan consider these simple steps:

Start by cleaning up your personal life: Don’t start your business if you are going trough a rough time in your personal life. This can include anything from a divorce, new baby, loss of someone dear to you, moving or going trough health problems. Dealing with your personal problems, issues or being overwhelmed is not something you want to be doing when starting a business.

Secure your credit: Especially during today’s economy, banks are tightening up credit lines. And in most businesses, you will need credit. If you are still employed and thinking of starting a business, consider staying at the job while you secure lines of credit. It is much easier to be approved by banks that way. People often make a mistake by leaving their job, and just going into a business without much to fall back on.

Make sure to write your business plan: As with everything else, you will need a plan. Be prepared, and give yourself enough time to write your business plan, than go over it. Make changes as you need. See if your plan is good for the long run. Make adjustments, see what and how you will be able to afford.

Most new businesses also require more than 40 hours of work per week, so you must plan for how much time you will contribute to your business. And not only do new businesses require your time, but they also require your money, always remember that. Also don’t forget to plan for taxes, health insurance and other self-employed expenses.

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