1. What type of financial record keeping do I need?
Most small business use single-entry bookkeeping, an entry is
made in your books for every financial transaction. All of the
money coming in to the business from sales goes on the income
side of your books; all of the money going out for supplies, rent
and other costs of running the business goes on the expenditures
side of your books.
A single-entry bookkeeping system is relatively simple to set
up. All you need is a book or computer program in which you can
record your daily receipts and expenses. Your "books" can, in
fact, be just one or two books - a multi-columned, lined pad will
serve many people just fine.
2. Do I need a computer?
Computers can be a useful tool for managing information, but remember,
they never DO the work for you. It is also important to have a
back-up way of doing things, in case your computer breaks down.
Business owners can use computers in a variety of ways: creating
professional-looking documents, researching on the Internet, communicating
via fax or e-mail, keeping track of inventory, keeping the books,
etc. You must look at your own needs and decide if the computer
will make your job easier or harder.
There are also a number of places you can use computers outside
your home/office, including:
- public libraries
- the Marketing Research Centers at the MBDP offices
- the Women's Business Center at the Women's Small Business
Program offices
- the Business Information Center at Key Bank
- local community technology centers like Cyberskills
3. Who are my customers?
The simplest way of doing it on your own is to engage is some
common-sense market research: Ask your friends and family for
anything they know about your potential customers. Go to trade
shows or engage in networking with other professionals. If you
are considering a storefront, talk to pedestrians who shop in
the area where you think you would like to set up shop. Subscribe
to publications that cover the business or trade you're interested
in.
A more complicated way of doing it on your own - and probably
a more accurate way - is to conduct a full-fledged market research
survey. There are three steps in a standard market research survey:
- Create your "typical" customer profile, that is, figure out
who you think your customer is
- Conduct a survey or surveys of people fitting that profile
- Analyze your results to determine whether you can put information
you've learned about your market to profitable use, and then
follow up on your findings
4. How do I get more customers?
Get the word out! Let people know what you have to offer. Think
very carefully about your marketing strategies. It is NOT just
advertising. It includes things like networking, PR, building
loyalty with existing customers, and building an identity and
reputation for your business. Some of the most effective ways
to get customers are the least expensive. For example, always
having business cards with you and handing them out at every opportunity.
Allow the people you know, particularly your existing customers,
to be your sales people.
5. How do you conduct a market survey?
There are many means to gather data after you profile your customer:
personal interviews, telephone interviews, mail interviews, group
interviews/focus groups, and test marketing. Anyone who starts
a business on a part-time basis while still holding a full-time
job is, in essence, test marketing. In the final analysis, once
you've completed your research, you can put the information you've
gathered to good use. You can modify your products, services or
location, do more research to make yourself more distinctive in
the marketplace, or otherwise act on the material you've gathered
to improve your start-up prospects.
