The Five Important Ws of Business Start Up

Thinking of starting a home business? Congratulations! You are in good company. Did you know that there are 25 million small businesses in America right now? And those small businesses employ 58% of our nation’s workforce? And generate 51% of our nation’s gross domestic product. It’s true! Prepare yourself to be number 25 million and one.

Every day thousands of entrepreneurs decide to go into business on their own. Some are driven by the need for extra income and decide to start a side-business. Others are tired of the corporate world or are just plain unhappy in their jobs. Some are just driven by that entrepreneur spirit burning inside of them. I was bitten by the entrepreneur bug at 5 years old when I had my first lemonade stand. Once you are bitten, there is no turning back. Before you start a business, you should make sure you get started off on the right foot. The best starting point for entrepreneurs is to answer the 5 W’s of starting a home business: Who, What, When, Where and Why? No matter what business you choose to start, this is the best starting point. It is important that you ask yourself the Who, What, Where, When and Why’s when considering starting any home based business. No matter what type of venture you may choose, if you cannot answer the five W’s you will greatly hinder your chances of success dramatically.

Let’s take a look at the five W’s in detail: WHO: Who are you doing this for? Is it for personal gain, family obligations, or to impress your friends, spouse or significant other? If you do not clearly know and understand who you are doing this for, you will have a very difficult time maintaining the motivation to achieve the level of success you desire. Here is some advice. If you are not doing this for yourself, you will surely have trouble succeeding. You must be driven by self-satisfaction to succeed. WHAT: The first part of the WHAT is, do you clearly know what it is that you want to achieve? Do you want to be able to quit your job and are looking to attain financial independence? Do you want to contribute to your retirement plan? Is it to put a down payment on a new house? Or do you just want to be able to afford a nice car and maybe do some traveling? It is important to know exactly what it is you wish to achieve. You have to be able to close your eyes and picture in your mind, down to the finest detail, what your life would be like once you achieve success. If you don’t truly know what it is that you want, it is almost guaranteed that you are not going to get it. How can you work towards and reach a goal if you don’t know exactly what that goal is?

Goals are very important in achieving success. You must set S.M.A.R.T. goals. S.M.A.R.T. goals are goals that are specific, measurable, attainable, realistic and time based. Look for a future article on “The Art of Setting and Achieving Your Goals”. In the meantime, I personally recommend Zig Ziglar’s “Goals” tape set. I have listened to this tape set at least a dozen times. It shows the importance of goal setting. It takes you step by step on how to set goals and is also very motivational.

The second part of the WHAT is, what kind of business you want to get involved in? It is crucial to do your homework here. There are literally thousands of business opportunities out there. I am guessing that many offers fill your inbox on a regular basis. Some of these sales letters can be very persuasive. Do not jump right into a business, no matter how good the business may seem at first. Spend some time doing research. Get on the Internet and evaluate the competition. Read articles and check small business forums. If you are looking at an offering from a specific company, Google the company name and look for both good and bad information. Also be sure to check with the Better Business Bureau.

Do you have what it takes? Determine how much time it will take on a weekly basis. Will it fit into your personal and family life? If it is a part time venture, are you leaving yourself time for other things in your life? Do you have the knowledge and skills required for this business? If not, can you acquire that knowledge and/or skill? How much will it cost? Identify and write down all the start-up costs. Also note the on-going costs as it may take a while for your business to start generating income. Do you have the funds to make it through the start-up period?

Is your product or service of value? Would you purchase this product or service? Would you subscribe to this newsletter? If you wouldn’t buy the product or service yourself, pick another product or service. If you wouldn’t buy it, why would you want to sell it? What makes this product or service stand out from the rest? The more you like your product or service, the better.

If after doing your homework, your business concept still looks good, ask yourself one more important question. I consider this the most important part of the WHAT. Is this business something I will truly enjoy doing? If you are jumping into a home business, it will become a big part of your life. They say to be happy you should “make your vacation your vocation”. The more you like what you are doing, the more successful you will be. WHERE: Research is the key here. Are you interested in a traditional “brick and mortar” store front? Are you interested in working at home? Will your business be Internet-based? Will you work a home-based business that involves out of the home sales, like realty or party plans? Make sure you take into consideration all the factors when choosing your WHERE. Is a store front logical and cost-effective for your kind of business? Could you run the same kind of business online from your home at a fraction of the cost? I had a friend who sold antiques in a store front and also worked antique shows. Once he started selling his antiques on eBay, he realized it was cheaper, easier and more effective so he shut down his store front and stopped working the antique shows. He wished he had considered his WHERE before he signed a lease. A store front limits you to the local area. Doing business on the Internet literally opens up your business to the entire world! It all depends on how big you want your business and its associated customer base to be.

WHEN: Knowing when to launch your business is where many entrepreneurs fall short. They are eager and excited to start a business and they hang the “Open For Business” sign too soon. Ensure that your business is completely ready to go before you open.

If you are starting a web-based business: Test everything before you launch your web site. Check each of your web pages for grammar and spelling. Nothing screams unprofessional like bad grammar and misspelling. Use a spell and grammar checker on all your pages. Do all the pages and links work properly? Optimize your images for quicker loading. Make sure your pages look the same on different browsers. You can test this at the following site: www.anybrowser.com. Test your newsletter. Does your auto-responder send the messages when they are supposed to go out? Are the messages formatted correctly? Do those links work? Is your payment and/or product delivery system perfect? Do not launch until every piece of your online business is working like a charm. Look for a future article with specific steps on setting up and testing a successful website.

If you are opening a store front: Is your store neat and professional both inside and out? Are your products arranged and grouped logically? Do you have enough product to keep your shelves stocked? Empty shelves make customers wonder if you can stay in business. Are your product’s prices cleanly labeled? Are all of your products set-up in your cash register system? Do you have plans to handle customer returns, complaints, supplier’s issues?

Studies have shown that you usually have thirty seconds or less to grab your visitor’s attention. Either in front of your store or on your company home page. If there is nothing of great value, your potential customer will simply move on and probably never come back. Be completely ready when launch time comes. Always keep in your mind, your name and reputation are always at stake from the minute you open your business. If you start out with a bad reputation, it is hard to change your customer’s mindset. Remember, “first impressions are lasting impressions”.

WHY: One of the most important questions to ask. Why am I building this business? Why will my customers buy from me? Why is this the best product or service to sell? Why did I choose this location? Why did I choose to work from home? Why did I choose this franchise? Why did I choose a part time vs. full time business? And most importantly, why am I passionate about the product or service I have chosen? Being able to answer any and every possible question about your new business will give you the knowledge and the tools to build a successful business. Keeping the five W’s in your mind throughout the planning, preparation, testing and launch phases of your business will provide you with the greatest chances for success.

To your success...