new business help.......

[chrisb514]

hello everyone,

I'm looking into starting my own sports merchandise and apparel business. On a side note, I currently work in construction and due to the economy I have receieved a substantial pay decrease and I'm also thinking more and more its not the career for me long term. Thus has lead me to thinking about starting my own business. I have little experience in running a business. I am looking into taking some classes, reading books, etc. to learn more. I am only in the initial research process of this. So, I apologize if what I am asking is vague, but I am looking for any advice, hints, tips, warnings, etc. that might help during this endeavor. I was also hoping many of you could guide me on where to begin?

I would also like to take this opportunity to thank all of you in advance for repsonding. I really appreciate all of you taking time to help me. Looking forward to hearing all of your responses.

Thanks,
Chris

[rpermana]

First, i think you need to draft up your whole plan. Ask yourself few questions like :

1. are you going online or open up a shop ?
2. what are you selling .. racket, sport shoes, or sport accessories ?
3. how much capital you need ?
4. going for bank loan or investor ?
5. strategic location
6. who is your target ? adult.. kids.. or professional athletes ?
7. who is your distributor ?
8. how are you going to advertise your shop?

[genystartup]

Hey Chris, it's never a bad thing to seek help from people, so you shouldn't apologize for asking questions starting a business is never easy. The thrill is immense but it could get ridiculously painful as frustrating but if you do succeed, it's the greatest feeling in the world. Here are important things to remember when starting a business:

1.) Unique idea: Always make sure that your idea is unique, if not completely, then atleast have a unique twist to it. It is usually very difficult to enter into competition with other companies who are already very much established in that field. In this economy it is usually a tale of survival of the fittest , and trust me, these already established companies have had so much training and practice that they sure are ‘match-fit’ and on most occasions, more ‘match-fit’ than you Mr. Rookie.

2.) Choose a legal structure: Most businesses will really need some sort of legal structure and a lot of people have no clue about this when they are starting up their business. In most states, the main structures are:
• Sole proprietorship
• Partnerships
• Limited Liability companies 9LLC)
• Corporations


It is important to have an understanding of these structures so that you can know where your start-up falls into.


i.) Sole proprietorship: These are one-owner businesses. Any business with two or more owners cannot, by definition be a sole proprietorship. This is a business that is owned by one person and hasn’t filed papers to become a corporation or an LLC. They are the easiest to set-up and maintain.
ii.) Partnerships: This is a business that has more than one owner and that has not filed papers to become a corporation or LLC
iii.) Limited Liability Companies: Perhaps one of the most popular types of business structure. As the name suggests, liability is limited in this case and offers you the pass-through taxation of a sole proprietorship or partnership with the same protection against personal liability that corporations offer.
iv.) Corporations: The only thing with corporations is that it is a separate legal entity from its owners.


3.) Pick a winning Business name: Always try to pick a name that atleast is somewhat related to the service/product you offer. If your business is a website, then your domain name in that case. Certain times you might want to think about a possible trademark to secure your name.


4.) Choose a great location: For many types of businesses, location can mean the difference between feast and famine. Other enterprises will do more or less the same whether they are located in downtown Manhattan or in a deep crevasse on Mars. Not only does the importance of location vary greatly from business to business, but what a location desirable for one business might spell disaster for another. So try to pick a place that works for the business.


5.) Draft your business plan effectively: This is a very important part of starting a business whether you have to later submit it to someone or not. Always try to write a plan before or while starting your business. The purpose of the plan is simple; to bring together in one document the key elements of your business. This should include the products or services rendered, cost of production, revenue and how you intend to market it. Usually plans are written for two purposes i.e. to secure funds (you will have to include concise financial projection in this case) or if the plan is primarily for your own use.


6.) Federal, state and local start-up Requirements: If your company is a corporation, LLC or a limited partnership, you will need to register/file organizational documents with your state. The requirements for starting up businesses vary from place to place so be sure to find out the procedure in your state.


7.) Get a lawyer and an Accountant: Now you might not think this is important, but so did the many people who skipped this step for one reason or the other and ended up losing everything. The lawyer has the important task of managing risk (e.g. should you get sued or need to sue), he/she also handles with your accountant what sort of taxes need to be paid and filed. The accountant handles everything relating to bookkeeping, accounting and cash flow management. Should you also decide to go into contracts or agreements with people, you will also need a lawyer in this case to not only advice you, but keep the records


8.) What is your marketing plan? Always decide early on who your market is and how you intend to reach them. It might sound easy at the start but from experience, it could be the most difficult hurdle. If your business is a website, then it is important to understand affiliate marketing/advertising, search engine optimization and the power of social websites like digg, stumbleupon e.t.c. In the midst of all these technology however, never fail to remember that offline marketing (word of mouth) is still very much a powerful tool.

if you have any questions feel free to message me or hit me up on my blog. goodluck buddy!

[pboychuk]

online or brick&mortar? I think that is the most critical aspect.. Are you going to have to invest in inventory which if the business did not turn out so well could eventually be sold off? Or are you investing in a retail location, staff, all the stuff that makes up a retail store..

One thing I have learned/realized, and I still have a lot of learning to do, is that the reason a high percentage of businesses fail is because they are losing money before they can even anticipate any profit..

You can't get a mortgage without income, so why invest money into a business when you don't have enough secondary income to support it.

Unless you have a unique/new idea, than is it really worth it to go $x00,000 into negative figures, to break even 3 years later, and than to have a "sports town" pop up next door and force you out of business

anyways

[rpermana]

if you don't have much experience in retail, i suggest you start small & grow slowly.

You can setup online store at eBay or even making up your own online shop... this costs you few dollars for startup...

then proceed with dropshipping which doesn't require you to store your merchandise or store room..

for advertisement, you may want to distribute flyers to your neighbours & relatives..

[SantaCruzer]

it sounds like these guys have put lots of great information up for you!

I'll suggest taking a look into the SBA (Small Business Administration). It is a government operated program created to help small business. I have met my local SBA associate and she is very helpful and nice....

I'll also suggest that you start learning about everything that goes into a business plan. If you put in all the hard work to design your own business plan... (do research, plan, research, plan, research, then plan) you'll get the most out it. It will also increase your chances of securing a bank loan (if you need one).

That's my $.02

Cheers!

[inle]

I believed that there are good advice given above & have included many pointers to kick start..

I like to add one more aspect I thought will be crucial..
Are you starting alone or are you getting a team?
What's are your strengths/weakness of yourself or your team & how you intend to manage & leverage on yourself & others..

The people in your biz is one of the most important aspects..
Take care of them & your customers & the biz will take of itself..

[lilg1989@gmail.com]

Your question should be answered and like they said above there is never a need 2 apologize as in because because even the best of entrepreneur need help and seek advice so if your question is not answered keep asking

[befree]

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[afteraithe]

What books have you read so far?
I would suggest that you read Bootstrap Business.
It is a very good book written about how to start your own business, and it's written in steps that are easy to understand.
You'll learn if you've got what it takes to start your own business, and what resources you'll need, etc.

I would highly suggest you read it, it really helped me.

Here's the URL of their site, where you can order a book.
bootstrapbusiness.org

[kevin2009]

I would recommend this book THINK LIKE AN ENTREPRENEUR... PERFORM LIKE A LEADER by Steve Mellinger... Its a good book for those planning to start their own business...