5 things to consider before starting your own business - KFVS12 News & Weather Cape Girardeau, Carbondale, Poplar Bluff

5 things to consider before starting your own business

(Source: Nichole Cartmell/KFVS) (Source: Nichole Cartmell/KFVS)

When you think of your dream job, what do you imagine? 

Maybe you're ready to jump ship and start your own business.

Before you start, there is a lot to consider.

Christa Hudson learned that the hard way.

She started Girardot Macaron Co. in Cape Girardeau earlier this summer.

"My friends and I love french macarons and the closest place to get them is St. Louis," Hudson said.

She was also looking for something more.

"It was a matter of I love spending time in the kitchen, and wanted to find a way that I could supplement my husband and I's income," Hudson said.

The bad news: about half of all new businesses don't make it past five years, according to the Small Business Administration, and only a third survive 10 years or more.

Here are some things to consider before you follow in Hudson's footsteps, according to the Better Business Bureau.

  • Do what you know and love. Don’t start a business because you think you’ll get rich quick. A business built around your passion and talent is much more likely to succeed. If your heart isn’t in it, your chances of growing and being profitable are slim.
  • Make a business plan. This is your roadmap to success. Describe what makes you stand out from your competitors, who your target customers are and how you plan to market your business. A well written business plan will also support your request for funding from your bank or government programs.
  • Be wise with money. Save up as much as you can before launching your business, but you’ll likely still need financing. Check with the SBA to find resources and government-backed loans. If you’ll need retail or office space, location is important, but keep a budget in mind and try to negotiate on price. When you’re up and running, keep a detailed profit and loss statement, and always keep current on your loan payments, taxes and bills.
  • Stay in compliance. Find out from the IRS what business taxes you’ll need to pay. Check with the your state to find out if you need to register your business with the state. A specialty license may also be required, depending on the type of work you’ll be doing.
  • Manage your reputation. It’s a given that potential customers or clients will search online for information about you and your business. Delivering on your promises is essential, too. Build trust by doing what you say you’re going to do when you say you’re going to do it.

Hudson says the future looks bright.

Her next step is to branch into the wedding industry.

She says the key to remember: be patient.

"I can do whatever I want as long as I put my mind to it," Hudson said.

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