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Starting a Business: Narrowing the Concept
Most would-be business owners have a vague concept in mind. They
think of a product or service that they want to provide and perhaps
brainstorm ideas on how to provide it. The idea may be excellent,
but the conceptualization is vague. Eager to get things going, they
decide that the details will be worked out on the fly. Often, things
come to a screeching halt, however, when they discover the amount of
paperwork involved in getting started.
If you need a startup loan from a bank, you will need to write a
business plan. Business plans must follow a strict format, requiring
details ranging from a mission statement to financial projections.
Even if you do not require a loan or a business plan, many other
forms require you to narrow the focus of your business as well.
Your type of business will be coded on your business license.
Performing tasks outside the scope of your license can open you up
to civil liability. Your insurance company will also need to know
the specifics of your type of work in order to insure you
appropriately.
Taking the time to hone the focus of your enterprise will aid you in
making a lot of decisions. It can help you decided where, and to
whom, you will advertise. It can help you identify the needs of your
customers and can help you try to find a specific niche that may
give you a leg up on your competition.
Brainstorming can help you to choose a direction. Begin with your
general idea, and then write down every job task or product that fit
into the category. For example, your basic concept may be
"painting." Examples of specific job tasks are: faux finishing,
interior painting, exterior painting, and commercial painting. Also
list related job tasks. For painting, related jobs might be:
carpentry, drywall installation and/or repair, and fence
construction and/or repair.
Once you have generated a list of tasks, decide which ones interest
you. Cross off any that are simply not in the direction you want to
go. Categorize those that remain into those you wish to perform
immediately, and those that you plan to offer as part of an
expansion later. Your list of expansion tasks will then give you a
goal to work towards, as part of a five-year plan.
With a final list of products or services that you plan to offer
immediately, you can begin to shape the focus of your company. You
mission and vision statements can now be decided. These short
statements project volumes about your company, and should be taught
to every employee you hire.
Your list of products or services, combined with your mission and
vision statements, will give you the information that you need to
fill out your startup forms. They also provide a clear direction for
your company, both now and in the future, and will guide you through
a myriad of business decisions.
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