2SB Digest: Small Business Startup Advice You Haven't Heard Before

Small businesses make up the backbone of practically any country's workforce. From the solo, home-based enterprise to the niche retailer operating from a downtown storefront, small businesses are everywhere. In the United States alone, they employ over half of the country's private sector labor force. They also contribute billions of dollars each year to local, national and international economies.

Given these facts, it's no surprise that so many individuals gravitate toward owning their own small businesses. However, it's important that any small business startup plan well before the "grand opening". Even the simplest misstep can lead to complicated problems down the road for the organization.

To help ensure that your business has the best chance of growth from the moment you "hang a shingle", we've assembled some small business startup advice that is innovative and straightforward.

1. Map out Your Cash Flow before You Open Your Doors:

A positive, controlled cash flow is one of the most important elements for any business, especially one that's operating on a limited budget. Before you accept one dollar from a client, it's important to determine how you’re going to manage your income and expenses. For instance, when will you require customers to pay for your goods or services? What do you expect your daily, monthly and annual expenses to be? How will you handle your taxes? How will you pay your bills before you turn a profit? These are all important questions which should be answered.

2. Plan on Not Taking a Paycheck for Several Months [or More]:

Too many entrepreneurs fall for the "get rich quick" schemes that are increasing in prevalence thanks to the Internet. However, it's quite unlikely that your company will be in a position to pay you a salary [or much of a salary] for quite some time. The average small business may take up to three years to show a profit. Our small business startup advice for dealing with this reality? Have an alternate method of getting money rather than pulling finances from your small business coffers. Instead, live off your savings, accept a part-time job or, if applicable, make due on what your spouse or partner brings home. That way, you can continuously invest any dollars back into your organization.

3. Seek out the Small Business Startup Advice of a Few Good Mentors:

Chances are good that you know someone who was once in your small business startup shoes, so why not ask him or her to be your mentor? Most business owners are willing to help others do well. You can plan on having lunch on a monthly basis just to talk about issues you're having and how they can be resolved. Make no mistake - having someone with whom you can openly discuss your ideas, problems and successes can make an enormous impact on your company's bottom line.

4. Don't Buy the Latest Gadgets until You Absolutely Need Them:

It can be tempting for small business owners to invest their funds in every gadget under the sun, but it's typically unnecessary. Embrace a mentality of frugality rather than one that elevates the notion of "flash". Make absolutely no purchases without taking into consideration whether you can do without them.

5. Avoid "Knee Jerk" Decisions:

Our final bit of small business startup advice is to never make any sudden decisions that could take your organization in the wrong direction. Many times, entrepreneurs and business owners become distracted by their emotions and wind up acting upon feelings rather than facts. If you are contemplating making a decision that could significantly impact your small business, wait 24-48 hours. One or two nights of sleep will clear your mind, enabling you to make wiser choices for your company.

Looking for more small business startup advice and information? Go to 2SBDigest for small business facts, thoughts, suggestions and networking opportunities.