Imagine this scenario: You are taking a year to travel around the world. You have been dreaming of this adventure your entire life and the opportunity has finally arrived. Well, it’s always been here, but you have now made the decision to find the time, the money, and the courage to do it.
Starting a business is a journey. It is your trip around the world, the one you have always dreamt of. Just as the world can seem like an overwhelming place to tackle, starting your own biz can be daunting … and equally exciting, exotic, and full of rewarding surprises. The best thing you can do for yourself before beginning this voyage is to prepare.
1. Itinerary. You are not about to fly around the globe without consulting a map. Don’t start your business without one, either. This map can be as brief as a vision or mission statement or as elaborate as a full business plan; franklincovey has a good template for mission statements. Understand the market, set goals, and create a timeline with milestones. Just as you may hit Cairo, Prague, and Tahiti later than planned, you may veer from your business plan, but it is a good guide for your journey.
2. Co-pilot or fly solo? We have all had travel partners (even just for a short bus ride across town) and have learned all too quickly what works and what doesn’t in a co-pilot. Who do you need along for this ride? Do you want a business partner? Do you want your best friend or an old classmate as your ally? Are you the driver and she’s the navigator or are you both drivers? Answer these questions before embarking together.
3. Travelers checks. Who is funding this adventure? How much money do you need? Are your investors friends and family or venture capitalists? Figure out what works best for you. For ideas and info check out prosper and angelcapitaleducation.
4. Research. Before takeoff, you find out where to get the best pad thai in Phuket and what shots to get before hitting that little village outside Chennai. Do in-depth research for your business, too. Find out who your competition is, what the market demand for your product or service is, what the barriers to entry are, your strengths, your weaknesses. Research the industry.
5. Paperwork. You must do all of the administrative work to get your trip under way: You need your tickets, passport, visa, shots. Your business needs this admin attention as well. Choose a legal structure—sole proprietorship, LLC, etc. (Legalzoom is an easy and affordable resource for this). In most states, you must file a DBA form. Get an EIN # (like a social security number for your business). And open a bank account for those soon-to-be-flowing funds.
