Since the job market is so bad, a viable solution to making a living might be to work for yourself. Join the ranks of the self-employed.
Here are some “DOs and DON’Ts” to get you started:
DO find a business that is needed in your area. If the only seamstress in town has just retired, maybe it’s time to learn to sew!
DON’T start the fourth bakery in a little town of 10,000, even though you can out-bake the others. While the town is discovering your wonderful pastries, you’ll struggle to get market share.
DO pay attention to your location. If you are opening a coffee shop, pick a busy corner away from any existing Starbucks. And preferably one that can be seen from the highway.
DON’T try to compete with your old boss in the same town. Sure you can do it better, but you’ll end up spending too much energy convincing his customers of that and trying to avoid his wrath (and maybe even a lawsuit).
DO get the proper licenses and town permits for what you are doing. Putting Town Hall on your side will help your business.
DON’T under capitalize your start-up. More small businesses fail due to lack of funds then for any other reason. If you can’t afford a couple of lean months, find a silent investor or wait until you have the funds.
DO seek appropriate legal and accounting help. Expensive as it may be to hire a good business attorney and accountant, they will save you much more money over the long run by avoiding costly mistakes.
DON’T use your retirement money to start a business. Let me repeat that: Don’t use your retirement money to start your business. Most small businesses fail, and if you have used your retirement funds, you’ll have no back-up and nothing for the future should your new venture not be as successful as you envision.
Opening your own business is an exciting event. Take the time to do it right and give yourself the best chance for success.
photo credit: I don’t know: Maybe
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Another important don’t is don’t borrow from the government by spending money your gross receipts and not paying your taxes, especially payroll and sales taxes.
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Many thanks.