Start Your Own Business, Fifth Edition: The Only Start-Up Book You'll Ever Need

795 Pages·2010·3.27 MB·English

by  The Staff of Entrepreneur Media

th
5 edition
“entrepreneurs enjoy a freedom few ever know.
starting your own business is one of the few
remaining paths to wealth—and this book is a
valuable road map.”
—robert K. Kiyosaki, author of Rich Dad Poor Dad
ap into more than 30 years of
small business expertise as you
Tembark on the most game-
changing journey of your life—your
new business.
This unmatched guide—the best-selling
be business startup book of all time—offers
critical startup essentials and a current,
comprehensive view of what it takes to
survive the crucial frst three years, giving
you exactly what you ned to survive sTarT
and succeed. plus, you’ll get advice and
insight from experts and practicing
entrepreneurs, all offering common-sense
your
approaches and solutions to a wide range
of challenges.
• Pinpoint your target market
• U ncover creative fnancing for
startup and growth
your
• U se online resources to streamline
own your business plan
• L earn the secrets of successful
marketing
• D iscover digital and social media
tools and how to use them
• T ake advantage of hundreds
of resources
boss • R eceive vital forms, worksheets
and checklists
own
From startup to retirement, millions
of entrepreneurs and small business
owners have trusted Entrepreneur to
point them in the right direction. We’ll
isbn-13: 978-1-59183-879 teach you the secrets of the winers, and business
isbn-10: 1-599183-870 give you exactly what you need to lay the
groundwork for success.
$24.95
small business/
entrepreneurship
cover design by
Megan roy entrepreneurpress.com By the staff of Entrepreneur Media Inc. with foreword by Peter Shea, CEO
business
week
bestseller
over 300,000
copies sold
sTarT your own business
The only startup book you’ll ever need
5TH EDITION
START
YOUR
OWN
BUSINESS
The ONLY startup book you’ll ever need
Jere L. Calmes, Publisher
Cover design: Megan Roy
Composition and production: Eliot House Productions
© 2010 by Entrepreneur Media Inc.
All rights reserved.
Reproduction or translation of any part of this work beyond that permitted by
Section 107 or 108 of the 1976 United States Copyright Act without permission
of the copyright owner is unlawful. Requests for permission or further informa-
tion should be addressed to the Business Products Division, Entrepreneur Media
Inc.
This publication is designed to provide accurate and authoritative information in
regard to the subject matter covered. It is sold with the understanding that the
publisher is not engaged in rendering legal, accounting, or other professional
services. If legal advice or other expert assistance is required, the services of a
competent professional person should be sought.
Library of Congress Cataloging-in-Publication Data
Start your own business/by Entrepreneur Media, Inc.—5th ed.
p. cm.
Rev. ed. of: Start your own business: the only startup book you’ll ever
need/Rieva Lesonsky. 4th ed.
Includes index.
ISBN-13: 978-1-59918-387-9 (alk. paper)
ISBN-10: 1-59918-387-0
1. New business enterprises—Management. 2. Small business—
Management. I. Lesonsky, Rieva. Start your own business. II. Entrepreneur
Media, Inc.
HD62.5.E559 2010
658'.041—dc22 2010020310
Printed in Canada
14 13 12 11 10 10 9 8 7 6 5 4 3 2 1
Editor: Marla Markman
Contributing Writers
Jill Amadio, Leanne Anderson, Jane Easter Bahls, Stephen Barlas,
Stephanie Barlow, Johanna Billings, Bruce Blechman, J. Tol Broome,
Andrew Caffey, Melissa Campanelli, Carolyn Campbell, Melissa
Caresosa, Cassandra Cavanah, Janean Chun, James Clark, Bob
Coleman, Charlene Davis, Cyrstal Detamore-Rodman, Sandra Eddy,
Paul & Sarah Edwards, Clifford Ennico, David Evanson, Barry Farber,
Iris Lorenz-Fife, Lorayne Fiorillo, Jerry Fisher, Barbara Frantz,
Charles Fuller, Cheryl Goldberg, Kim Gordon, Cynthia Griffin, Mark
Henricks, Mike Hogan, Frances Huffman, Christopher Keanelly,
Danielle Kennedy, Erika Kotite, Jay Conrad Levinson, David Lindo,
Jacquelyn Lynn, Richard Maturi, Robert McGarvey, Sean Melvin,
Gwen Moran, Heather Page, James Park, Jennifer Pellet, Chris
Pentilla, Marcia Perkins-Reed, Debra Phillips, Karen Roy, Edward
Rybka, David E. Rye, Eileen Figure Sandlin, Bev Stehli, Gayle Sato
Stodder, Guen Sublette, Joan Szabo, Conrad Theodore, Bob
Weinstein, Glen Weisman, Geoff Williams, Linda Wroblewski
TABLE OF
CONTENTS
Foreword by Peter Shea,
CEO and owner of Entrepreneur Media, Inc. - - - xi
On Your Mark . . .
part 1
THINK
chapter 1
Introduction - - - - - - - - - - - - - - - - - - - - - - - - - 5
chapter 2
Taking the Plunge:
Get Ready to Be an Entrepreneur - - - - - - - - - - - - 9
chapter 3
Good Idea!: How To Get an
Idea for Your Business - - - - - - - - - - - - - - - - - - - 19
chapter 4
Good Timing: Should You Launch
Your Business Part or Full Time? - - - - - - - - - - - - 31
v
VI START YOUR OWN BUSINESS
chapter 5
Build It Or Buy It?: Starting a Business vs. Buying One - - - - - - - - 39
part 2
PLAN
chapter 6
Choose Your Target: Defining Your Market - - - - - - - - - - - - - - - 73
chapter 7
If You Build It, Will They Come?:
Conducting Market Research - - - - - - - - - - - - - - - - - - - - - - - - - 89
chapter 8
The Name Game: Naming Your Business - - - - - - - - - - - - - - - - 115
chapter 9
Make It Legal: Choosing a Business Structure - - - - - - - - - - - - - - 125
chapter 10
Plan of Attack: Creating a Winning Business Plan - - - - - - - - - - - 143
chapter 11
Call in the Pros: Hiring a Lawyer and an Accountant - - - - - - - - - 155
part 3
FUND
chapter 12
All in the Family: Financing Starts with
Yourself and Friends and Relatives - - - - - - - - - - - - - - - - - - - - - 177
chapter 13
Nothing Ventured, Nothing Gained:
How To Find and Attract Investors - - - - - - - - - - - - - - - - - - - - 193
chapter 14
Looking for Loans: The Ins and Outs of Debt Financing - - - - - - - 203
chapter 15
Fed Funds: How To Get Government Loans - - - - - - - - - - - - - - - 221
■ TABLE OF CONTENTS
START YOUR OWN BUSINESS VII
Get Set . . .
part 4
PREPARE
chapter 16
What’s Your Deal?: Negotiating Successfully
by Cliff Ennico - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 239
chapter 17
Site Seeking: Choosing a Location for Your Business- - - - - - - - - - - 249
chapter 18
Looking Good: Creating a Professional Image- - - - - - - - - - - - - - 271
chapter 19
Stock Answers: The Lowdown on Inventory - - - - - - - - - - - - - - - 283
chapter 20
It’s in the Mail: Setting Up Mailing Systems - - - - - - - - - - - - - - 303
chapter 21
Charging Ahead: Offering Your Customers Credit - - - - - - - - - - - 315
chapter 22
Cover Your Assets: Getting Business Insurance - - - - - - - - - - - - - 335
chapter 23
Staff Smarts: Hiring Employees - - - - - - - - - - - - - - - - - - - - - - - 353
chapter 24
Perk Up: Setting Employee Policies and Benefits - - - - - - - - - - - - - 385
part 5
BUY
chapter 25
Buyer’s Guide: Business Equipment Basics - - - - - - - - - - - - - - - - 415
TABLE OF CONTENTS ■
VIII START YOUR OWN BUSINESS
chapter 26
Business 24/7: Using Technology to Boost Your Productivity - - - - - - 429
chapter 27
Net Works: Building Your Company Website - - - - - - - - - - - - - - - 447
chapter 28
Keep In Touch: Using Technology to Stay Connected - - - - - - - - - - 463
Go!
part 6
MARKET
chapter 29
Brand Aid: Building a Brand - - - - - - - - - - - - - - - - - - - - - - - - 485
chapter 30
Marketing Genius: Advertising and Marketing Your Business - - - - 495
chapter 31
Talking Points: How To Promote Your Business - - - - - - - - - - - - - 549
chapter 32
Sell It!: Effective Selling Techniques- - - - - - - - - - - - - - - - - - - - - 569
chapter 33
Now Serving: Offering Superior Customer Service - - - - - - - - - - - 591
part 7
ENGAGE
chapter 34
Net Sales: Online Advertising and Marketing - - - - - - - - - - - - - - 603
chapter 35
Social Studies: Social Media Marketing - - - - - - - - - - - - - - - - - 619
■ TABLE OF CONTENTS
START YOUR OWN BUSINESS IX
chapter 36
Can You Relate?: Social Media Networking - - - - - - - - - - - - - - - 629
part 8
PROFIT
chapter 37
Keeping Score: The Basics of Bookkeeping
by J. Tol Broome Jr. - - - - - - - - - - - - - - - - - - - - - - - - - - - - 641
chapter 38
Making a Statement: How To Create Financial Statements
by J. Tol Broome Jr. - - - - - - - - - - - - - - - - - - - - - - - - - - - - 659
chapter 39
On the Money: Effectively Managing Your Finances
by J. Tol Broome Jr. - - - - - - - - - - - - - - - - - - - - - - - - - - - - 675
chapter 40
Pay Day: How To Pay Yourself - - - - - - - - - - - - - - - - - - - - - - - - 705
chapter 41
Tax Talk: What You Need to Know About Your Taxes
by Joan Szabo - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 713
appendix
Business and Government Resources- - - - - - - - - - - - - - - - - 731
Glossary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 743
Index - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 767
TABLE OF CONTENTS ■