Feature

By Saveeta Rampadarat

Becoming Your Own Boss

The prospect of starting a business is an exciting one -- until the questions and problems start piling up.

The first question is invariably what sort of business do I start? Take a look at what interests you. What are you good at and what do you love to do? The point of starting a business is to do what you like. This is your time to be creative, have fun and earn some money in the process. Think about your current job and what you love or hate about it. Determine if this line of work is something you would like to continue. If so, apply the same skills of your current job to your business. You don’t need to quit your job to start the business; you can try it part time, and see how much momentum you gain with the venture.

Once you have figured out what you like to do, you need to consider the profitability of your venture. This is where business planning comes in. Roll up your sleeves, grab a pen and paper and start writing. What’s your idea? What will you need to start the venture? What will you charge for your service or product? Most importantly, who is your customer and what is the market need?

Once you have answered some of these basic questions, use the Small Business Association (SBA) website to download a business plan form. A business plan is a great way to assess the positives and negatives of starting a business. It will help you flush out the potential hurdles you might encounter or give you a new approach to starting the business. Make sure that you realistically assess the number of employees you will need, the equipment and any other overhead costs you will have.

Once you have decided that you have a feasible idea, you have to figure out how to finance it. Look into SBA loans, borrowing against your 401k or using money from a contract to fund your venture. There are a lot of details and opportunities available to small business owners, such as minority 8(a) status. Many South Asians overlook this, but it makes businesses eligibile for contractual government or private work. You can download the application and get more information on 8(a) status from the SBA website: SBA 8(a) and SDB Certification.

You also need to think about how to register your business. One question new small business owners often face is whether or not to incorporate. Do you own a house or have investments that you would like to protect? If so, incorporating your business might be the answer for you. If you are going to have a partner, you might want to look at a Limited Liability Partnership or if you are starting a business that doesn’t have a lot of legal complications, you might want to keep it registered under your name as a sole proprietor.

Taxes and accounting methods are other issues to consider. What type of bookkeeping methods should you use and do they have any legal implications? Refer to American Express Small Business Network for further advice and additional resources.

These tips are just the basics of starting a business. Once you have it set up correctly, you will need to look at marketing techniques, including the ways in which you create demand for your product. Some basic methods are using the web, print media or other promotions to stimulate interest.

The process of starting a business is a challenging one, but it’s definitely worth the personal satisfaction and independence you can gain. The strengths and lessons that you learn from the venture are ones that you can apply to any endeavor you pursue.

Saveeta Rampadarat, MBA, is currently working in Advertising/Promotions for Sony Electronics. Ms. Rampadarat has founded two companies: Spin Marketing Consulting, a marketing strategy company, where she worked with a range of consumer product and Realtime Unlimited, a promotions and brand marketing company. You can contact her with any questions at saveetar@hotmail.com.

Back to Top