Frequently Asked Questions When Starting A Small Business

What type of business should I start?

Finding the right kind of business is an individual choice. Your personal expertise, management skills, and financial capacity will help in making this decision. Take inventory of your knowledge, interests, talents, and resources. There are books and self-tests that can help.

Which businesses are successful?

You can find forecasts of the “top businesses of the decade” in books and magazines. However, much depends on timing, location, hard work, and luck. Research your business and industry thoroughly.

What are my chances for success?

There are no guarantees, but studies have shown that careful planning and objective evaluation will increase your chances for a successful business. The information in this book should help you prepare well.

How much money will it take to start a business?

No one can answer that but you. There is a vast difference between businesses. For example, a service business takes much less capital investment than a manufacturing firm. It is up to you to develop the plan for your business, which determines cost and other investments.

How can I get the money to start a business?

There are numerous ways to finance a business, including personal savings, loans from relatives or friends, traditional loans, government loans, venture capital, etc. Most government loans are in the form of guarantees through local banks. In most cases, a loan will require collateral and a convincing business plan.

Where do I get a government grant?

Government grants are rare and only available for limited, specific enterprises. Contact your local Small Business Development Center for more information.

I have a small part-time business—do I need to get licenses and permits?

Yes. You are responsible for all the required licenses and permits regardless of size.

How many hours will I have to work?

Typically, as a small business owner, you will be responsible for everything, from marketing to maintenance. Expect to spend long hours (perhaps ten to twelve hours per day) on the business for the first few years. Carefully consider your personal needs and those of your family before taking on this commitment