Business |Featured

Starting Your Own Business

By Khushroo Ghadiali | bio | contact

As the nation’s unemployment rate hovers around 10 percent one might not think this the best time to start a business, well think again.

With the profusion of small business loans and other programs set up by the government, this is an excellent time to look into starting your own business. Many economists say that the country will depend on small businesses to exit the current recession.

Running your own business can be a rewarding, long-term choice. According to the National Federation of Independent Business, there are currently 29 million small businesses in the United States. One in 10 Americans is currently in the process of starting one to fill a void in the product or service industry. American small businesses currently produce roughly one-half of the privately generated GDP and generate two out of three net jobs.

So how do you go about starting a small business?

The first thing you’ll need is an idea. It doesn’t have to be something new and you can always take an existing business and put your own spin on it, making it more efficient or economical. You could also decide to turn a hobby such as photography or a passion for cooking into a business.

Next, you’ll need to decide if you’re going to rent space for your business or run it out of your home. Once you have a name picked out, go to the county courthouse and do an assumed name search to make sure no one has the same name as you. If available, register it. The fee runs about $20.

Now take some time to put together a business plan. This doesn’t have to be complicated. Write down the goals of your business, the demographic you’re aiming it at and how you plan to bring in customers. Do a little market research and figure out what your competitors are charging and what your costs for the product or service are.

Now that you have a business plan together, it’s a good time to figure out the financing behind it. Keep in mind that it will take time for your business to get established in the community. You will need to plan for at least six months to a year for it to become financially stable. Ask yourself if you will need to hire employees for the business or if you’ll run it on your own. Is there a certain amount of money you’ll need for start up costs? What will you need to advertise the business? Will you pay yourself a monthly salary or just keep the profits at the end of the year? What about bills? Do you need insurance for your equipment or in case someone sues you for malpractice? These are some of the things to keep in mind as you draw up a list of expenses.

Remember your ultimate goal is to make your business successful, so the more income you bring in, without spending money, the more profitable you are going to be.

If you can, plan ahead by talking to potential clients to see if they would be interested in signing up for your services from the launch date.

Who can help?

There are many organizations in the El Paso area that can assist you with starting and promoting your business. Organizations such as El Paso SCORE (elpasoscore.org 915.629.6711) can help you develop your business as it grows. The El Paso Chamber of Commerce (Greater El Paso Chamber of Commerce 10 Civic Center, El Paso , TX 79901 (915) 534-0500 elpaso.org) often holds meetings for you to meet other business owners and potential customers. Make use of these events to network. In addition, check the chambers website for bid requests.

The U.S. Small Business Administration (sba.gov) is an independent government agency that provides assistance to existing and prospective small business owners via interest free loans for as long as 25 years. The local office is located at 211 N. Florence Street, 2nd Floor, Suite 201, El Paso, Texas 79901, 915-834-4600.