Starting your own IT business is a daunting task. Having started three technology-based businesses on my own I’ve learned the hard way about business planning. In my experience having a solid business plan is a good first step. The question is how do you make a solid business plan?
First things first, you have to understand what you are getting yourself into. I can only suggest researching the formation of a small business. Running a business is a completely different concept than working for a business. When you are merely a part of the work force, everything is fairly simple and straight forward. You go to work, do what your employers asks, receive compensation, go home and then start the entire process over. When you are running the business, it’s not as simple as just doing the required work. You decided to start your own business because of the freedom it provides. However, when owning your own IT business, you must take great care to ensure that you file the proper tax forms, build rock-solid contracts and agreements. Furthermore, you no longer have an easy access free checking account; instead you have the ever confusing business checking account. Nine to five starts to sound like a long lost dream. You get into your own business for the freedom. All of these interesting new twists and turns make it imperative to have a working knowledge of how small business is managed. In my opinion, the first step is to assess if your new venture is worthwhile.
Sit down and run basic figures. How much is this new business going to cost me? How much am I going to be able to make from this new business? Am I financially secure enough to continue to make ends meet, even if my business is in the “red” for a while? How much do I need to make in order to feel like my business is a success? These are just a few basic questions to ask yourself. If you still feel comfortable with your plans, then it is going to be a good idea to start working your plans out on paper. Using a simple business plan is a key step in the development process. You can always add to your business plan so start simple and build from there.
Just because you have a business plan doesn’t mean you are guaranteed success. Part of the reason I suggest going into a new business venture knowing your personal thresholds for time and money is because there is always a good chance your new business might just take a little longer to find success than you plan in the first place. You must have the fortitude to stick with your new business. With the appropriate planning in place, and assuming your ideas can hold water, eventually you should succeed.
