Copyright Bob Hausen

http://www.LighthausHomeBiz.com

Ralph Waldo Emerson once said, “Build a better mousetrap, and the world will beat a path to your door.”

That’s easier said than done. In today’s fast moving, ever changing world of business, there is no assurance that your “mousetrap” is going to be a hit.

Within the first two years of operation, nearly half of all small businesses fail. The main cause of this is the lack of planning. The second reason is under capitalization.

So don’t go mortgaging your house, or going deep into debt financing your business, before you know if your business is going to soar — you would like to know if it’s good enough to flourish. Here are three things successful businesses that have remained in business for five years or longer have in common:

1. You need to start with an idea. A successful business start-up always begins with an idea. You require something that will make your business stick out from all the others in your niche. So what is it that constitutes a good idea?

You’re in the ballpark if you are able to answer yes to any of these questions: Will your idea provide an answer to a particular problem in your market? Will it satisfy a need or want? Will it create an opportunity?

The most successful businesses either fix problems (either real or perceived), or they increase your customer’s delight. They create a recurring demand for a product or service among the target market.

2. The market. If you can answer the following questions with a yes, your chances of survival are better than if not. Is there already a need for your product or service? (It’s much easier to meet a need than trying to create an entirely new market.) Will your targeted market be able to afford your products or services? (If they can’t afford it, it doesn’t matter how great it is, you won’t sell any!) Will they consider your product or service as a need or a want? (If they want it, but don’t see a need, or believe it’s worth what you’re selling it for, you won’t sell what you need to survive.)

3. Your ability. Do you have the people, the resources and the knowledge to be able to consistently supply your products or services to your target market? Can you sustain a competitive advantage? Do you have an adequate work force? Can you purchase the supplies and materials you require over the long haul?

Your opening move would be to create a strong business plan. Your business plan is more than an essay on “Why I deserve to get financial support for my idea” however. Don’t spend all your time formulating a business plan and then lose it somewhere in your desk drawer. Your business plan had better be a living, breathing guideline that serves to make certain you are on track and achieving the goals that you laid out for your business.

The second step to business survival is generating the financial support neccesary to operate your business. Although the term “bootstrap entrepreneur” identifies virtually all small business owners, receiving adequate capital to be able to keep your business afloat is critical to your survival.

While you’re developing the financial analysis of your business, always be sure you’re being upfront and honest about your costs and expenses. You would like to give yourself the cushion you need to succeed.

If finding loans is a problem, either since your credit is not the best or the lack of equity, or anything else that would present any other problem, be sure to check into the resources that are available in your community. There are an assortment of grants and loans (including microloans) for entrepreneurs, if you know where to search.

Here are some noteworthy resources:

-The Small Business Administration

-Local Small Business Development Centers

-Women’s Organizations

-Local University or Community College

-Chamber of Commerce

-SCORE (The Association for Retired Executives)

-Nonprofit organizations that work on economic development in your area

A good idea would be to model a successful business as a guide. It is best to keep your eyes opened while you’re just getting started. Which businesses are moving, growing? Why? What is it they’re doing that is working? What attributes do you admire, and why? If you are modeling a business that’s already successful the likelihood that your business will likewise be successful are increased.

Find a mentor. Most entrepreneurs have outstanding skills and abilities, but no one does everything easily. You probably already recognize what your specialties and failings are. (If not, there are several resources and tools that can help you figure it out!) Instead of brushing aside your weaknesses, find a mentor who can help you either ramp up your skills in your weaker areas, or offer advice for getting what you need.

If you take the time to plan to succeed, you could be creating a legacy that will be enjoyed by future generations, and that other entrepreneurs will look at as a model for building their own businesses.

About the Author:

Bob Hausen is the owner of http://www.LighthausHomeBiz.com and reviews popular home business ideas and opportunities. Bob’s top home business recommendation is the Plug-In Profit Site where you can get your own money-making website setup in 24 hours!

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