| An average of 80 percent of small businesses fail | | | | figure out any costs involved throughout the entire |
| within their first year. That is a scary reality for anyone | | | | process. For example, if you are providing a cleaning |
| who may be thinking of starting a small business. With | | | | service, you will need to determine not only the cost of |
| the majority of new businesses not lasting a year, it | | | | the cleaning products but also, the gas and mileage it |
| makes it hard for people to decide if starting a | | | | will use to get to the job. You will also want to figure |
| business is a right choice for them. No one wants to | | | | any monthly bills you may have into your overhead. |
| put everything they have into a business just to watch | | | | These are things like rent, electric, and heating costs. |
| it sink. Before starting a company you need to be | | | | Now that you have your costs determined, you will |
| prepared, but how do you know if your small business | | | | add how much profit you want to make to determine |
| idea is a good one? | | | | your pricing. For example, if you have a cleaning |
| You should always have a plan. All businesses are | | | | service and your costs are $100 per job and you |
| selling something. It may be an actual product or it | | | | would like to make $50 per hour. Then you would |
| could be a service. Either way all businesses are selling | | | | charge the client $150 for an hour long job. Now you |
| something. You need to determine how saturated the | | | | can do an online price comparison to see if this is a |
| market in your area is for whatever it is your business | | | | competitive rate. If it's competitive and fair, then you |
| is selling. To determine this you could do a simple | | | | probably have a good small business idea. If not you |
| Internet search and see how many similar companies | | | | should cut costs somewhere and re-figure. |
| come up. You should also do this if your small business | | | | Now that you've reviewed the market and finances, if |
| idea will be an online business. The Internet makes it | | | | you still believe your small business idea is a good one, |
| easy to start a home business, but because of that it | | | | you should look at one more thing. The amount of time |
| make also mean there is a lot of competition. | | | | you can afford to put into your business each week. |
| Then, you should figure your costs and also a | | | | Businesses are sure to fail if there is a lack of focus |
| competitive pricing for your product or services. You | | | | and dedication. As long as you have a plan and can |
| can determine the cost by figuring what it actually | | | | stick to it, then maybe it's time you became a small |
| costs you to produce whatever product you are | | | | business owner! |
| selling. If you are selling a service, you will want to | | | | |