THE BIG DECISION - Starting a business.  Once you have decided that, you are on your way.  Starting a small business can be a scary and frightening task.  So many questions can run through your mind. . . . .Am I doing this right?  Do people want to look at what I have to sell?  What do people want to buy anyway?  But don't worry.  Take a step back from the fear and fascination of starting and running a small business and go all the way back to the basics. Before starting your own business you need to have a plan.  What do you want to sell?  Why do you want to sell it?  How do you want to sell it.?  What is unique about what you are doing compared to the next person? A business plan is the basis of all further operations.  A business plan usually follows the following format: 1.   Executive Summary - who you are, what you are doing and why your business is such an amazing idea. 2.   Profile - including mission statement that describes your business and why you are in it (this can also be useful to you in later months/years so you can check yourself and see if you are still on the track you originally planned to be). 3.   Competitive Analysis 4.   Marketing Strategy 5.   Staff Qualifications - if you choose to have staff 6   Financial Information 7.   Any additional information  you would like to include A business plan is usually simple and clear and will help you stay on track throughout the course of your business.  "Good plans shape good decisions. That's why good planning helps to make elusive dreams come true."  --Lester R. Bittel If you are starting out this business on your own, you become manger, supervisor and staff all in one.  One of the most predominate jobs you now take on is carrying out managerial functions. Managerial functions are general administrative duties that need to be carried out in virtually all productive organizations to achieve a desired outcome.  The five basic managerial functions are: Planning, Organizing, Staffing, Directing and Controlling. (POSDC) -     Planning is the primary management function.  It is the formulation of future courses of action.  Plans and the objectives on which they are based give purpose and direction to the organization.  -     Organizing is where one considers the structure of the organization.  This could include the chain of command, division of labor, and assignment of responsibility.  Careful organizing ensures a smoothly run business. -     Staffing consists of recruiting, training and developing people who can contribute to the organized effort. -     Directing is communication.  Managers must be responsible for communicating their ideas, as well as necessary knowledge, instructions, rules and information to their employees. -    Controlling is when one compares the desired results with the actual results and takes the necessary corrective action to keep things on track.  Deviations from the original plan should be taken into consideration when formulating a new plan. Understanding the roles of management help you to understand and evolve your business plan.  The plan that you start out with may not be where your business takes you,  but you need to  be conscience of it.  otherwise your business could take a turn you do not want or are not prepared for. Another factor to be extremely aware of is the finances of your small business.  If you are creating a business run out of your home, do you want to deduct a portion of your house on your taxes or is it wiser not to? (I suggest a tax professional to help you make the right decisions.)  Are you going to have inventory that you need to control or is that being handled elsewhere?  How are you going to record and keep track of the profits, and what about the expenses of running a small business? Don't worry,  you don't need to go hire an accountant the second you start your small business.  What you do need to do is become a conscientious record keeper. INVENTORY - Know what your inventory is, where its going, and how much it is costing you.  Is it monetarily valuable to keep your inventory up in stock or is it more economical to have someone else controlling that?  (There are companies that drop ship to your customers.) EXPENSES - Know what you spend on your business and keep all of the receipts.  Be conscience of books that you buy,  products for your office or business, and other business expenses.  Know that it costs money to make money. INCOME - Know what money is coming into the business and keep track of it.  Know what products sell well, what products you are losing money on, and how to tell the difference. Businesses have two main objectives:  Make a profit and remain solvent.  Remaining solvent shows the businesses ability to pay off its bills and debt.  If you plan to do your own accounting, a recommended read is Peter J. Eisen's  - Accounting the easy way. Remember, starting a business should be fun and exciting.  Yes it will be a lot of work, but the rewards are immense.  Be sure you are dedicated to what you are doing, have a plan, and stick to it.  Learn everything you can about your business and tend to business.  Do what you say you will do. Satisfied customers are your best advertising. "Motivation is everything.  You can do the work of two people, but you can't be two people.  Instead you have to inspire the next guy down the line and get him to inspire his people."  --Lido Anthony "Lee" Iacocca (b. 1924), American business executive.