Is Your Small Business Idea Well Planned Out?

Owning your own small business is one of the most rewarding experiences in life, but it can also be one of the most stressful if you don't have a plan in place.

With more and more entrepreneurs starting businesses only to watch them fail, preparation is a major must.

So, with small business success in mind, here are just a few ways to start your small business off on the right foot:

Small Business Stats

Knowing the facts before you embark on your small business journey is always helpful, which is exactly where statistics come into play.

According to the Small Business Administration Office of Advocacy, more than 500,000 small businesses are started each month in the United States.

Of those small businesses, a quarter survive at least 5 years, and another quarter make it to the 10-year mark, and a little under a quarter reach the 15-year mark or more. As for the remaining small businesses, they hardly make it to the second year.

With sobering statistics like these, every entrepreneur should draw up a strong plan.

Weekly, Monthly, and Yearly Business Plan

Planning is absolutely everything when it comes to starting a new business and if you want your business to last you the long run, you have to think not only long term, but short and middle term as well. After all, a strong business plan is only as good as its thoroughness.

When it comes time to formulate your business plan, don't just practice wishful thinking by only coming up with a 5-year plan. Instead, create a business plan for the first week, the first month, and thus, the first year.

Besides, the first year of running a new business is tough, with the first few months being the toughest.

Be Financially Ready

Tackling your business plan is one thing, but making sure you have capital to get your business up and running is another.

Whether you run your own numbers or use the services of online financial planners, your finances must be in order.

This doesn't just mean budgeting for your small business's startup costs, but its running costs as well.

Likewise, set realistic goals when it comes to profit as well. Many entrepreneurs quickly discover that overhead costs outweigh profit in the first few months of opening a new business.

Prepare for the Work Ahead

Owning and operating a small business isn't a matter of elbow grease, but rather dedication.

Sure, starting your business takes a ton of work, but keeping it going takes passion and devotion. In other words, don't underestimate how much attention your new baby will need.

Whether your small business is a one-person army or you're planning on hiring help, long nights are all part of the game. The more prepared you are for the work ahead, the easier it'll be when times get tough.

By keeping in mind the pointers above, you'll avoid the big surprises that go along with starting a small business.