Small Business Help And Training

Human Factors In Small Business

Your success in business depends on the human factor as well as, if not more than economic factors.

Measuring Your Human Capital

To startup a business is easy. To endure the process of going through the startup process is not. Many fail when they could have succeeded. They just give up. The human factor leaves them short of the necessary human capital.

Before you start be sure you check your tolerance level for what you are going to have to do.

Start your own business by first looking at your human capital. Your business start up human capital is the foundation for your home business. For a small home business startup, your human capital is typically you. And beyond that, you cannot start up a home business and expect to succeed without a support group.

A business startup takes a lot of planning, good products to sell, and careful financial forecasting. More than that, launching a business start up takes massive amounts of time, energy, and risk-tolerance.


A Business Startup And Passion

To start your own home business you have to have a passion. Without being passionate about your business it is not likely that you will be able to weather the trying times that plague every business start up. And starting a home business will give you your share of trying times.

But starting a business requires little more than a passion to launch, but to survive, compete and make a profit it takes a certain personality. And it takes support .

If you are not passionate about starting and running a business, you should really think through what you are considering, And if you are passionate about starting and running a home business you should likewise think it through. If you are experienced and calculating, you will probably still benefit from looking into some things unique to a home business.


Business Risk Tolerance

How much risk are you willing to tolerate? You are likely to have to work a couple years to develop a decent income. You will be working against the odds. Most people who start up a home business give up disillusioned before their business even leaves its infancy. Had they staid with it they may have made it.

During this two to three year development stage for your business startup you will be investing money in bookkeeping, taxes, licenses, web pages, and a multitude of other things. This is a known risk that you have to plan to tolerate.


Business Startup And Family Factors

Do you have the support of your family? You are going to be taking your time from your family. Of course you will be taking other things from the family resources such as money, space in the house for your business, telephone use, interruptions by customers and much more. Are they ready to tolerate this while you go through business start up?


Can Your Personal Resources Withstand Business Startup?

You have to do a detailed analysis of your personal financial situation to decide whether you can pay your bills until your business is standing on its own. From where will you be getting the money that you are going to need to not only start your business but also to expand.

A detailed financial analysis is necessary before you start up your business. Look into every financial detail that you possibly can think of. And plan not only for success, but plan for failure. You have to be ready to survive should something not work out the way you plan and you have to shut down your business.

If you have never gone through a business startup, you will soon find that there is a lot more to it than you thought. So it is advisable to look at some sample business plans to see what you should consider.

And there is really a lot more that you can do to help yourself For example, look at the information about starting a business and making a full time living on the internet that is at this link called Starting A Business Right.


The Most Important Personal Resource Is Your Experience

What is your experience? How well do you know the business environment into which you will be venturing? It is one thing to be a hobby collector or part time seller on eBay. It is another to be able to buy right, manage efficiently, and work against merciless competition.

Do you know the right people in the industry? Do they have a support structure for you? Also, if you do have experience in the industry, is that experience in a management position? There's a big difference between being an expert in your particular field and knowing how to manage the entire process of getting a product or service successfully to market. If you don't have specific management experience, it's imperative that you get help from someone who does. Seek guidance from industry experts and follow the paths blazed by others.


Your Experience Can Help You Choose Your First Niche

When you start, start with something you know. Stay on solid ground. Once you establish a good base, then move afield.

And here is a link to our Business Planning Guide.