West Virginia Department of Commerce Getting Started - Starting Your Business

GOING INTO BUSINESS IN WEST VIRGNIA

GETTING STARTED

OWNING A BUSINESS and making it successful is one of the most satisfying and enjoyable experiences you can have. But it isn’t easy. Your business will require a great deal from you — physically, emotionally and financially. Matt Alderton, Writer, Editor and Media Consultant of Logolepsy Custom Content and Communications says,

Every successful business starts with a great idea, but not all great ideas result in a successful business. So how do successful entrepreneurs catch the right idea in a stream of clever business schemes? With patience.

• Consider all your ideas — and those of friends and family — carefully. Don’t dismiss suggestions too quickly; your best idea might be your least likely one.
• Many entrepreneurs consider themselves jacks-of-all-trades; most businesses, by contrast, must be highly focused to succeed. Find a niche and be an expert rather than a generalist.
• The right business for you will be in an industry and a market where there is room for you; avoid pursuing a business that is already saturated with competition.
• Whatever business you choose, you’ll have to make a living doing it. Be realistic, then, about whether you’ll be happy doing it, and whether consumers will actually pay you for it.

The following exercises aren’t intended to discourage you, but they are intended to get you thinking what being in business is all about. Evaluate your risks carefully and make sure that you’re going into business for the right reasons. It’s a big step — make certain you are ready.

Knowing Yourself
Personal Considerations
Financial Considerations

KNOWING YOURSELF

Your own business — is it for you? Take a look at these pros and cons from Business Owner's TOOLKIT:

Pros • You have the capacity to make a lot more money than you can make working for someone else. • You’ll be your own boss and make the decisions that are crucial to your business’ success or failure. • You may manage other people. • You’ll have job security; no one can fire you. • You’ll have the opportunity to put your ideas into practice. • You may participate in every aspect of a business and gain experience in a variety of disciplines. • You’ll work directly with your customers. • You’ll benefit the local economy, such as by hiring other people to work for you. • You’ll have the personal satisfaction of creating and running a successful business. • You’ll work in a field or area that you really enjoy. • You’ll have the ability to build real retirement value (for example, by selling the business when you retire). • You’ll have the chance to put down roots in a community and to provide a sense of belonging and stability for your family.

Cons • You may have to take a large financial risk. • You will probably have to work long hours and may have fewer opportunities to take vacations. • You may end up spending a lot of time attending to the details of running a business and less time on those things you really enjoy. • You may find that your income is not steady and that there are times when you don’t have much income at all. • You may have to undertake tasks you find unpleasant, such as firing someone or refusing to hire a friend or relative. • You may have to learn many new disciplines, such as filing and bookkeeping, inventory control, production planning, advertising and promotion, market research and general management.

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PERSONAL CONSIDERATIONS

These questions will help you evaluate yourself as a prospective business owner. They also may identify ways you can prepare yourself for business ownership. Each question’s relative importance depends on the type of business you want to start. Review them to identify your strengths and weaknesses. The more “yes” answers, the more likely you are to succeed.

	Yes	No
I like to make my own decisions and try my own ideas.
I enjoy being challenged and thrive on competition.
Common sense is one of my strong points.
I realize I may have to lower my living standards for several years.
I get things done on time and plan ahead.
I know my own business will require me to work 60-80 hours a week.
I have the energy to do all the work involved that the day-to-day operation will need: lifting, hauling, standing, walking, talking, smiling and driving.
At times I’ll have to be all things to all people. I can stand the strain this creates.
I know I don’t know everything and I’m ready to take advice from others.
I’m adaptable. I’m not so routine-bound that I can’t change if the business requires change.
I appreciate others’ points of view.
I believe in my ability to make sound decisions.
I do not give in to people to avoid a conflict.

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FINANCIAL CONSIDERATIONS

	Yes	No
I have a head for figures and maintain proper records.
I am careful with my finances and have ways to save money.
I have a good credit history.
I know how to forecast sales and have the experience to use this information.
I know how to keep inventory records, report sales, and withhold employee taxes for federal, state, Social Security, unemployment and workers’ compensation.
I know how to analyze financial statements for effective business management.
I know the suppliers and the assistance they can provide me.
I know how to control my inventory or staff to meet the demands of my customers and my business.
I know how to collect past-due accounts without losing customers.
I know how to determine the cost of goods sold and how to price my product or service.
I have a realistic idea of what my startup costs will be.
I am willing to get training in financial areas I am weak in.
I am willing to reassess my financial software, the professionals who assist me and my own financial knowledge annually.

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