Advice for Business Startups

When starting a new business, its natural to have many questions and to seek advice from those with experience. Business startup advice includes tips on generating creative business ideas, writing a business plan, finding capital to fund a new business venture, as well as direction for legal, accounting and human resources issues.

Business Startup Advice Sources

Many websites and publications cater to entrepreneurs. Two of the most popular general information sources for would-be entrepreneurs are Entrepreneur, both the magazine and the website of the same name, and Startup Nation, a website and interactive community focused on the needs of startup businesses. Both sites feature plenty of startup business ideas, advice for new business owners, and experts to answer questions.

Specific Advice for New Businesses

Common areas where people seek business startup advice include legal issues, capital and funding sources, marketing and human resources.

Legal Issues

New business owners often question what licenses, certifications or other local, state or federal regulations they must satisfy to operate legally. Additionally, depending on the type of business you're running, you may need to protect your intellectual property through copyrights, patents or trademarks. Seek a local business attorney to answer questions. Most grant a free consultation. It's important you find an attorney you feel comfortable with and who is knowledgeable about local and state regulations concerning your industry.

Any new company must determine its business structure. Legal, accounting and tax ramifications exist for each of the major business structures: Sole Proprietor, Limited Liability Corporations (LLCs), and S or C Corporations. There are pros and cons to each structure, and only a business attorney can counsel you on the right one for your unique circumstances.

Finding Capital

Most successful entrepreneurs start their companies using money from their own pockets. It's important to save up enough money so you can live without a regular paycheck for a while. Business experts caution that it can take many months, if not years, for a business to become profitable. In the mean time, you need enough money to run your business, pay for your health insurance and other needs.

After personal savings, many entrepreneurs turn to their credit cards for instant 'loans'. The benefit of using credit cards to finance a new business is that aside from the original credit approval application, no other paperwork is needed; you just charge expenses to the card. The drawback is that interest rates can be quite high, so think twice before charging your cards to the limit for your new business venture.

Other sources of capital include bank loans and other types of loans. Many entrepreneurs turn to friends for investment capital. Bank loans are difficult to get for new businesses, but a sound business plan, excellent personal credit, and persistence can help you secure a bank loan.

Angel investors are investors who seek new and innovative businesses to invest in. They're neither friends nor family, but instead look to turn a profit on their investment. You may be able to find a business angel to fund your business.

Sales and Marketing for Startup Businesses

Sales and marketing strategies must be addressed in the startup company's business plan. Know your market, know your customers, and demonstrate in your plan and in your actions that you can satisfy their needs by providing great service and goods at a reasonable cost.

Every business today, even solely bricks and mortar businesses, needs a web presence. Many web hosting platforms offer simple "what you see is what you get" templates that function similarly to Microsoft Word or Publisher. Such a template is invaluable for a startup business. It makes it easy to build a simple, professional web presence.

Seek low-cost marketing methods to generate sales and interest in your new business. Low-cost marketing methods may include social networking, viral marketing, online marketing, and postcard marketing. Social networking sites are especially important in today's market and provide nearly limitless access to potential customers worldwide.

A large percentage of your business may derive from referrals, making it worthwhile to develop relationships with community leaders, company managers and other small business owners. Advice about networking informs you about the process of seeking beneficial relationships, establishing those relationships and encouraging them to grow over time so they continue to help you.

Staffing and Human Resources

At first, you may have to do most of the work for your new business. Salaries are expensive, and it pays to wait as long as possible before hiring workers. Get your business off the ground and running before hiring a full staff. Be sure you understand federal and state human resources requirements. Have a written job description for each position, and understand the differences among freelance and contract workers, part time and full time employees. Consult a business attorney or business accountant to ensure you're paying applicable state, federal and other taxes; you cannot hire people "off the books" legally.

Find a Mentor

Everyone's business is unique. Many people seek a mentor, coach or consultant to help them through the rocky startup phase. A good place to find an experienced business person who can mentor you through your startup phase is SCORE, an organization of retired business people who are available to provide one-to-one advice. Another place to start is your local Small Business Administration chapter. Many offer workshops, seminars, and free materials filled with expert advice.