Thanks to an anemic economy and a tight employment market, many people’s thoughts turn to finally starting that business to replace their day job or just have a side business to bring in some extra income.

If you are ready to take the plunge and start your own business, here are a few things to know about as you take (or before you take) the plunge. As many of my long-time followers know, I’ve started a few businesses and I’m becoming addicted to startups and their energy. I’ve had some hits and misses and I hope that I can save you from the trouble of making some of the mistakes I did, although I am sure you will probably have to make them anyway. It seems to be apart of the whole idea.

Let’s Begin!

Step 1: Money

This is the hardest thing to talk about which is why I’m starting with it first. Starting a business with no money is painful, very difficult, and can be discouraging. One of my best business ideas never got off the ground for the simple fact I had no capital to make things happen.

Most business experts agree some start-up capital is required to make a business really get going. Look at your resources. Can you make lifestyle changes and save money? Do you have any savings of any kind? You really have to gather your resources and figure out what you can spend on your business.

After you have formed your capital base, its time to do your homework. What are your startup costs? Think of everything including new computer, phone, anything that will help your fledgling business off the ground. How much do you know about the potential business you’re creating? How much do you know about the growth potential of the industry you are embarking in? If you are looking at getting involved in a shrinking industry or one with not much growth potential you might want to reconsider your options. Would this make a better side hobby? Do you offer something so different that you could buck an industry trend? Can you bring the resources to bear that would make disruption possible? You will want to look at potential competitors–people already in the game–and see what they are doing right, what they are doing wrong and you might be able to do it differently.

Step 2: Plan

This would be the time, if appropriate to write a business plan. There are several good books on the subject including my post on the subject. In creating your business plan you will be thinking about not only everything above but how you intend to conduct business and how you are going to create success. Where is your income coming from? What are your expenses? How are you going to market and sell your product or service? You will be able to step out all the aspects of your business and create a plan of how you intend to pull it all off. Like any plan, things change the second you engage the enemy (read: customers).

Step 3: Work

The next thing when you are starting your own business, is the subsequent lifestyle changes. Whether you’re quitting your job or going it on nights and weekends, starting your own business takes time. All those hours watching TV mindless drifting through life until you sleep and then work again? As a business owner, those days are behind you. There is much to accomplish!

You have to develop your product or service, work on marketing and promotions, network, serve customers/clients, and improve your business. Add in accounting/invoicing and any kind of buying/service improvement and your time is getting pretty stretched. If you are going to continue to hold down your 9-5 employment you will be spending every waking moment from 5:01 to 8:59 the following day working on something for your business all the while trying to keep the clothes washed, food on the table, and juggling any and all responsibilities on top of that.

Step 4: Surround

Business, at its core has a communicative and social aspect to it. Surrounding yourself with the right people both within the industry of your product or service and from outside your industry is key. Networking and networking groups are particularly if you are offering services. Work the whole room, collect business cards like pogs in school. When you first go to a networking event the best and easiest way to make an impact is to shake every person’s hand in the room. Try Meetup.com, its a great resource for finding the right places. 90% of business is marketing. Success is a numbers game. The more people you have going through your business and the more people know that your business is offering its product and service the better off you will be and the more success that you will ultimately have. Most people focus on the parts of the business that interest them and that often doesn’t include marketing and promotions and give their business face by their presence in the community. There are several great books depending on your industry about how to market a business. Stop by your library, bookstore or head over to Amazon to find some industry specific advice.