http://www.businessweek.com/print/smallbiz/content/feb2009/sb20090210_652973.htmThis article brings up some good points to keep in mind when starting a business. First, it points out that you need to consider both start up and operating expenses. It suggests some ways to decrease start up costs such as bartering for equipment, partnering with others, and using interns. I think all of these are great ideas because they create situations in which a new owner is developing mutually satisfying relationships with other people and in effect, the two parties are entering a partnership that benefits both. A new owner may be able to provide a service for another business in exchange for use of equipment or maybe two people that are both starting a business could share some expenses. There are many ways to carry out this idea with some creativity.
Another idea mentioned in the article was to carefully evaluate the costs. Maybe some things are not really necessary in the beginning and could be put off until later. The owner should identify what items are must haves such as advertising and which can be phased in. Next, the owner can then estimate what is needed to pay for the necessary costs, allowing room for error. If the owner uses all of this information, he or she can decide whether the business plan is really feasible, whether the plan needs to be adjusted, or whether the business should really be started on a part-time basis (an idea that seems more feasible given today’s economy).
