| According to John Wright, the chairman of the | | | | clients. |
| Federation of Small Businesses, "small businesses are | | | | - Do not make any assumptions at the time of |
| at the heart of the economy". There is much in the | | | | business set up. Many businesses have gone under |
| current statistics that back this statement. In the first | | | | because their owners believed that had a hot idea |
| quarter of 2009, more than 77% of enquiries were for | | | | which turned out to be a damp squid when it was |
| very small businesses, ie, businesses that sought an | | | | launched in the market. |
| office space of five desks or fewer. | | | | - Before you set up the business, have a clear idea of |
| A small business is generally defined as a business | | | | whether you want to run it as a sole proprietorship, |
| that had fewer than 100 employees. Small businesses | | | | partnership or corporation, or whether you want to |
| are generally partnerships, privately owned or sole | | | | become a franchise. |
| proprietorships. Interestingly, the recession seems to | | | | - A written business plan is a must of you want your |
| have brought out the best in the entrepreneurial skills | | | | business to succeed. A business plan is like a |
| of people who were happy to work for others until | | | | roadmap. It will help you take the highway to success. |
| now. Hence the burgeoning desire to set up small | | | | Without it, you can easily get lost or delayed. |
| businesses. | | | | - Do not try to save money by skimping on necessary |
| Some important tips to remember at the time of small | | | | expenses. If you need the advice of a professional, |
| business set up include: | | | | employ them. Mistakes made at the time of business |
| - Before you set up your business, have realistic | | | | set up are hard to undo. They can become a scary |
| expectations. This is not a get rich quick scheme. To | | | | mess in the long term. |
| succeed, a small business needs proper planning, | | | | - Find the source for the finances you will need, not |
| sufficient financing and time. Expect to spend 1-3 years | | | | just at the time of business set up but also during the |
| nurturing the business before it can generate profits. | | | | first few years when your investment has not yet |
| - Before setting up the business, spend enough time | | | | brought in sufficient returns. |
| and resources researching the market. Find out | | | | - It is necessary to know as much as possible about |
| whether the business has an open market and | | | | setting up a business in general before you actually do |
| evaluate the performance of your competitors. | | | | it. In fact, solid research is your greatest strength. The |
| Choose a business idea that is easy to market and | | | | internet is full of helpful information. The Business |
| caters to a particular niche. Assess the viability of your | | | | House website is another rich resource. |
| business idea by evaluating the needs of potential | | | | |