So you want to start a business? For many years, I’ve had people who have called me to help publicize a business. It has always amazed me that I have to turn down half of the people who need my services only because they actually don’t have a real business, they are just hoping p.r. will help them make one overnight.

Unfortunately in the real world a business actually takes a lot of hard work. Here are some of the most essential things you need to do before you start a business.

1) Have a business plan. This sounds elementary, but 90% of all people who have businesses or think they have businesses are flying by the seat of their pants and don’t know what a business plan actually entails. This is perhaps the most sound thing you can do – it takes a lot of time, but will save you time, money and frustration if you start your business off on the right foot by having a plan. Yes, there have been many people who have started business and have done just fine without a plan, but know that 1 out of every 3 businesses fail in the first 6 months. You certainly don’t want to be that 1 … just because you didn’t have a sound business plan.

2) Figure out WHAT your business is and know how to describe it. If you cannot communicate in one sentence what your business is and what you do, this is a problem. Your business needs to fill a void, be a solution or provide a product or service that is either common or unique where there will be a need or want for it.

3) Time line. The most successful people in business know that time is money and don’t waste it. If you have a business plan, set a GOAL TIME as to when things are going to happen and stick to it. Having the ‘whatever’ attitude, screams failure at every turn with no productivity or accountability for things to happen. Be sure to adhere to your own deadlines.

4) Money. Are you a start-up with no cash? Are you a start-up planning on investing your own savings? Do you have an investor? Venture capitalist? Understand where you stand with money – what you need to actually DO business. This is also where your business plan comes in. You have to know what your budget it, what you are going to invest or spend to start your business and what your expenses are. You have to also know realistically what it is going to take to launch your business. Also be very realistic about how long it will take for things to happen (this is why the time line is so important). Sometimes delays actually cost you money and there is a domino effect in affecting your budget. Be aware and prepared for the unexpected. Most businesses fail because of ‘unexpected expenses’ they are not prepared for and the business fizzles because there is no operating cash. If you have your business plan with your budget and financial plan organized correctly, you’ll be in a better position to start your business.

5) Don’t start living the life of a CEO before you are a CEO. This is one of the top ways to fail your business before you start it. Don’t spend money you don’t have and don’t make flimsy executive decisions that don’t have any merit just because you enjoy your soon-to-be title and are looking ot be in a position of power. Sure, power and decision making feel good. But you won’t be doing yourself any favors by only delegating things without your own involvement in every move in the name of your company. Know that CEO means you need to actually take on a chief role in decisions, planning, and yes, in the beginning lots of the hands-on work yourself for many endless hours. It also means you’ll be dedicating time and labor yourself before delegating any.

6) Don’t just hire your friends without seeing what they bring to the table. Mixing friendships and business can be a very sticky thing. If your friends have no clue or skills to do what it is you want/need them to do, hiring your friends for the sake of being ‘the good guy’ is only set-up for your own business failure. Now if your friends have the perfect skills to make the most ideal team, that’s still a very sticky thing. Friendships are challenging in the name of business. You may be someone’s friend for years and years. And they may be reliable and be there for you at some ungodly hour of the morning if you are sick or hurt. But do you KNOW their work ethic, habits, strengths and work behavior? Are they prompt? Show up late? Procrastinators? Do they know how to finish what they start? Do they need micro-managing? Do they do what they say they are going to do? Are they good communicators and relay messages promptly? These are only a FEW of the questions you need to ask yourself before even daring to cross lines of friendship and business. You also need to ask yourself, if you had to ‘fire’ them for any reason, would your friendship be affected? Would they take it personally? Or realize work is work and friendship is friendship? This all takes deep thought and much consideration. If you have no idea – and cannot figure out the above, don’t bother to hire your friends.

7) Pipe dreams vs. Reality in the name of research. You may think you have the best idea for a business. How do you know? Have you done your homework? Do you have competitors? Are you entering a market where there are already hundreds of people doing the same thing? Or are you so unique there is no one like you? There may be a reason WHY. Maybe it won’t sell or it won’t work? Or someone has already been there and done that and failed miserably. Could you learn from their mistakes? You need to check and see where you are going and what and who you are competing against to understand where you are starting off with your business. Doing this before you even start a business is key so you are not doing everything backwards.

8) Newbie Novice or Guru? So you came up with a design idea for the greatest pair of athletic shoes. And your friends and your family think it’s the best. But you’ve been working in real estate and have no apparel business experience. Will you fail or succeed? This depends on you and how much homework you’ve actually done (see above, item #7). Just because you don’t have any experience in the apparel business doesn’t mean you’ll fail. BUT YOU SHOULD educate yourself on all aspects of the business you plan to enter … manufacturing, distribution, retail, etc. Arm yourself with as much knowledge as possible about your ‘new industry’ and you’ll be better prepared for anything that comes your way. If you are going into a partnership or selling your idea – KNOW who you are getting involved with, be realistic about what your cut is and understand all aspects of ‘the deal’ before you even begin to consider one. If you are a guru in a specific industry, this also does not automatically spell success, either. You may be an expert in your field, but unless you have a plan to take your expertise to the next level of an independent business or apply your years and years of expertise to ENDORSE your own product (i.e. you work in a clinic and many patients have a dilemma or problem you have created a new product for to solve the problem). Think about where your best placement of your expertise can be to strengthen your product or service within your business of choice. Knowing this ahead of time can make all the difference and dollars!

9) Legal representation. You need this. A good lawyer will be one of the best things you can do for yourself as a business person – now and in the future. Do your research and get referrals and understand that there are different lawyers for different things and many lawyers have niche specific areas of expertise. KNOW what a lawyer can and can’t do for you and be sure to ask questions. Do whatever you can do on your end to prepare before you hire a lawyer, to save yourself from expensive sessions, and make sure you show up organized. This will make it easier for any attorney to work with you, and also represent you better because you are business-ready. If you have created some invention, look into an attorney who works with patents and can help you on this front specifically.

10) Know who your customers are. I can’t tell you how many times I have asked prospective clients who their businesses are geared toward and they are clueless as to who they are selling to. If you don’t know who will buy your product or services, how are you going to sell your product or service? More importantly, if you plan on hiring a sales team of any kind, THEY need to know who you are selling to – and they cannot sell if their own leader can’t tell them what they are supposed to be doing and who with. This is vital to know, or you have NO MARKET. And if you have NO MARKET, you don’t have a business. You cannot blindly say-“my product or service is good for everyone.” No product or service is that or can be that. People have allergies, disabilities, budget constraints, religious differences, generational differences, geographical differences. An Eskimo has no need for a bikini anymore than a person who is a diabetic has a need for a candy bar. So there are no products that are universally ideal for everyone. And there are also branding influences. You can’t get someone to switch from Heinz ketchup to your ketchup overnight – even if everyone likes and already knows Heinz ketchup. Get the picture? Get in touch with who will buy what you’re selling…. And more importantly why they would buy again or recommend buying from you to a friend.

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