Tips for Starting a Small Business

Starting and owning a business can be one of the most fun and positive life changes a person can make in their life. Businesses are not only a potential source for higher income, but can gradually give a person more time and a creative outlet if they're done right. There are dozens of reasons people will tell you it's not a good idea to start a business, but for most people the positives outweigh the risks.

The following tips are from my own experiences in primarily online businesses. I'm currently 24 years old and have a clear plan of being able to retire before 30 at my current rate of progress. This is basically the process I went through, beginning at age 19:

1) Before you leap into action, educate yourself.

This can be done in several ways. Some colleges have business programs where you can learn about concepts on a formal level. There's nothing wrong with that, but be sure to select a program that is taught by people who own businesses. The college I attended taught almost entirely business theory without practical applications, so I opted for majoring in psychology and communications instead. These majors were indirectly related to business in that they taught me how to work with different personalities and how to communicate clearly.

My real business education came from three main sources. At 19, I began working for a traditional small business, a small movie theatre. This was a unique experience because it had just changed hands, and the new owners let myself and my husband (fiance at the time) have a very active role in the business. I didn't know it at the time, but I was being mentored on how to operate a successful business and getting paid to do it.

This later led me into reading books on business (the kind you find at any retail bookstore or library, not textbooks). Finally when we came across a good business model of an online business, my husband and I got weekly training from a local business group that utilized the same website. Over time, your thought process will begin to change. I can't force myself to think the way I used to think 5 years ago, and I know if I keep going I'll be even better off 5 years from now.

2) Start small and ease your way into business.

I started in business part-time while keeping a full-time job and going to college. It's hard, but it can be done. Sometimes you have to give up some things to have enough time to do it, but I figured out I was wasting a lot of time watching

TV shows that weren't helping me move foward in life. It doesn't mean you get tunnel vision to the point you can't relate to people, but you do have to be a little different than the average person if you want to make progress.

Financially, there's really no need to go into debt to start something like a home-based or web-based business. It's also not a bad idea to incubate a traditional business idea at home in the beginning if possible. I think debt is the number one thing that crashes businesses before they stabilize. I've stopped certain businesses in favor of others that are less hassle, but I've never had to shut down a business due to it not profiting. That's extremely important.

You also have to give yourself time to learn. If you make all of your mistakes while you're on a small scale, you'll do better once you start to grow.

3) Figure out your business niche.

This is also a process, but if you can find some aspect of your business that sets you apart it will help you. You want to be known as the person to go to for that niche. Make sure it's a big enough need that you'll have a stream of business, but narrow enough that you've reduced a lot of competition.

4) Work.

This is kind of a funny tip, but sometimes it has to be said that capital alone won't do it for you. Even with online businesses, you can't expect for the money to flow in the moment your website goes live. The energy and time you invest in the young stages of your business will come back to you when it matures. It is worthwhile, especially when you look at the alternatives of what you could end up doing instead.

5) Enjoy what you do.

The right small business should become more of a way of life for you rather than just a job that you own. I personally love the challenge of having my own businesses, which along with the financial rewards I've never found matched in a job. If people do what makes them happy, it's a lot easier for them to become experts in their field. The money does follow. You just have to make the decision to get started. Best wishes to you!