Starting A Small Business from Scratch - What to DO? What to AVOID?

a reply to: Blaine91555

Thank you all for the great replies. I am taking meticulous notes from this advice. Everything you have all said so far helps a ton! I may not reply too much on this thread, because the point is not for me to babble incessantly, but to learn; so, I am definitely taking this information to heart! I may give an update on our situation with this business as things get rolling in early 2019, good or bad hah Thanks again, and please keep any great advice coming!

a reply to: Blaine91555

a reply to: FlyInTheOintment

You never mentioned a business plan, I assume you must have done a thorough business plan which details the financial projections etc.. of the business?

I’m not sure about US tax rules but in the U.K. it is normal for a start up to make a loss in the first year or so, that loss can then be carried over to the next financial year and be offset against taxes.

My advice having never taken this leap, but seen others succeed and fail is...

1. Have a plan
2. Adapt the plan by iteration rather than by step change
3. Failure is inevitable - try to limit the size of failure
4. Recognise you'll not earn as much as you think you will
5. Be prepared to work very hard to make it work
6. Be prepared to pull the plug

I own two companies. Be prepared for long long days (and nights!) Never invest all the capital you have at your disposal, always keep a fair chunk in a personal account. It can be very tempting to over invest and purchase bulk stock for better discounts from suppliers - Don't.. If you find one or two products are not as salable as you anticipate you will end up with a ton of dead stock. Test the water first with a good variety of different products. Find what sells best, even if it's a lower profit margin. Sales are sales and turnover is key for any retail business.

As stated a good accountant is key to your success. All the best with your new venture!