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Starting a small business ranks close to having a child in the “major life event” category. This can be one of the most stressful times, but if done right, it can also be one of the most rewarding things in your life. Some might think that to start your own business, you have to know everything. One thing that you can have something help you with is marketing and advertising. This is a very complicated part of any business and if the average business owner thinks they know everything they need to know about this, they are kidding themselves.

If you are currently planning to start your own small business, maybe  it’s good to spend a little time to gather the following questions and answers that may help you to run your business successfully. Here are the most frequently asked about small business :

1. Do I have what it takes to own/manage a small business?

You will be your own most important employee, so an objective appraisal of your strengths and weaknesses is essential. Some questions to ask yourself are: Am I a self-starter? How well do I get along with a variety of Personalities? How good am I at making decisions? Do I have the physical and emotional stamina to run a business? How well do I plan and organize? Are my attitudes and drive strong enough to maintain motivation? How will the business affect my family?

2.    What business should I choose?

Usually, the best business for you is the one in which you are most skilled and interested. As you review your options, you may wish to consult local experts and business persons about the growth potential of various businesses in your area. Matching your background with the local market will increase your chance of success.

3.    What is a business plan and why do I need one?

A business plan precisely defines your business, identifies your goals and serves as your firm’s resume. Its basic components include a current and performance balance sheet, an income statement and a cash flow analysis. It helps you allocate resources properly, handle unforeseen complications, and make the right decisions. Because it provides specific and organized information about your company and how you will repay borrowed money, a good business plan is a crucial part of any loan package. Additionally, it can tell your sales personnel, suppliers and others about your operations and goals.

4.    Why do I need to define my business in detail?

It may seem silly to ask yourself, “What business am I really in,” but some owner?managers have gone broke because they never answered that question. One watch storeowner realized that most of his time was spent repairing watches while most of his money was spent selling them. He finally decided he was in the repair business and discontinued the sales operations. His profits improved dramatically.

5.    What legal aspects do I need to consider?

Licenses required, zoning laws and other regulations vary from business to business and from state to state. Your local Small Business Administration (SBA) office and/or chamber of commerce will provide you with general information, but you will need to consult your attorney for advice specific to your enterprise and area. You also must decide about your form of organization (corporation, partnership or sole proprietorship) or tax status (e.g., should you opt for a Subchapter S status?).

6.    What do I need to succeed in a business?

There are four basics of success in small business:

• Sound management practices.

• Industry experience.

• Technical support.

• Planning ability.

Few people start a business with all of these bases covered. Honestly assess your own experience and skills; then look for partners or key employees to compensate for your deficiencies.

7.    Would a partner(s) make it easier to be successful?

A business partner does not guarantee success. If you require additional management skills or start?up capital, engaging a partner may be your best decision. Personality and character, as well as ability to give technical or financial assistance, determine the ultimate success of a partnership.

8.    How can I find qualified employees?

Choose your employees carefully. Decide beforehand what you want them to do. Be specific. You may need flexible employees who can shift from task to task as required. Interview and screen applicants with care.  Remember, good questions lead to good answers?the more you learn about each applicant’s experience and skills, the better prepared you are to make your decision.

9.    How do I set wage levels?

Wage levels are calculated using position importance and skill required as criteria. Consult your trade association and accountant to learn the most current practices, cost ratios and profit margins in your business field. While there is a minimum wage set by federal law for most jobs, the actual wage paid is entirely between you and your prospective employee.

10.    What other financial responsibilities do I have for employees?

You must withhold federal and state income taxes, contribute to unemployment and workers compensation systems, and match Social Security contributions. You may also wish to inquire about key employee life or disability insurance. Because laws on these matters vary from state to state, you probably should consult local information sources and/or SBA offices.

11.    What kind of security measures must I take?

Crimes ranging from armed robbery to embezzlement can destroy even the best businesses. You should install a good physical security system. Just as important, you must establish policies and safeguards to ensure awareness and honesty among your personnel. Because computer systems can be used to defraud as well as keep records, you should check into a computer security program. Consider taking seminars on how to spot and deter shoplifting and how to handle cash and merchandise; it is time and money well spent. Finally, careful screening when hiring can be your best ally against crime.

12.    Should I hire family members to work for me?

Frequently, family members of the owner “help out in the business.”  For some small business owners it is a rewarding experience; for others it can cause irreparable damage. Carefully consider their loyalty and respect for you as the owner?manager. Can you keep your family and business decisions separate?

13.    Do I need a computer?

Small business today faces growing inventory requirements, increased customer expectations, rising costs and intense competition. Computers can provide information that leads to better returns on investment. At the same time, they help you cope with the many other pressures of your business. Computers are not cure?alls, however, and considerable care should be given to:

• Deciding if you need one, and

• Selecting the best system (or personal computer) for your business.

14.    What about telecommunications?

All small businesses share some common functions: sales, purchasing, financing, operations and administration. Depending on your individual business, telecommunications can support your objectives in any or all of these areas. In its basic form, the telephone (the terminal) and the network (local or long distance) make up the basic components of telecommunications. It is an effective tool that can easily change with seasonality and growth. How you use telecommunications can affect how efficiently and profitably your company grows in the future.

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