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Starting smaller, you’re better able to develop a solid customer base. One of the reasons is customers have come to know you. They’ve helped add to your success. Participated in the growth of your biz.It’s not surprising new entrepreneurs think starting big is best. A word to the wise - unless you’re already financially successful, have an angel or capital investor ready with the needed cash - It’s makes good sense to start your business small.

1.  Your biz profits faster since you can better control costs for development and production. 

First, it’s essential to do necessary research to discover what customers want and need. Then, and only then, develop products people want, need and will buy. Often you can redevelop or reinvent an old product to save time and money. But don’t waste either working on developing products there’s zero market for. When it’s comes to producing products, don’t produce more than you have customers to sell too.

Often, new entrepreneurs - and some seasoned ones - turn the crank sending the presses into overdrive. Thinking it’s better to have much more than needed, than less. Later ending up with tons of leftover merchandise they’ve wasted time and money on. Which may never sell. Or they’ll sell at a loss.In short, controlling costs should be your first concern. And it’s always best to take orders for future products, with customers paying you up front. Than to spend your own biz cash. Which is best invested elsewhere.

2.  You can afford to grow your business slowly. 

Believe it or not, just as many businesses fail with too many customers, than with not enough. How can that happen?

Easy, you’re working overtime producing products. With too many orders, or business, you can end up trying to create more than you have hours available to work. You’re so overworked, sloppiness sets in. Or, you run out of materials and make substitutions of lesser quality. You could fail to make deadlines and resulting in cancellations. Provide services which are slipshod and fail to meet customer satisfaction. Bottom line, you can end up exhausted and producing a quality not up to yours or a customers high standards. Growth overwhelms your biz and you end up losing customers.

3.  It’s easier to make mistakes from which you can recover.

For example, you priced a product too high, or too low? For you it can take fifteen minutes to do a price change. The competition can take a week or several. Losing thousands before it’s corrected. Purchase the wrong equipment? There’s probably a return clause in your contract. It’s easier to get the OK to return one piece of equipment, than for a competitor who purchased two dozen.

Generally you won’t make mistakes large enough to ruin your business. You’ll see a problem and remedy it quickly. For example, you offer a product or service which isn’t selling. You can easily mark it down, perhaps return it to the vendor. Without draining your bank account in the process. If it’s a service, you can easily notify customers by mail or email, post a notice, notify customers when they call.

4.  You’re save money on your greatest expense - space leased.   Today it’s common for entrepreneurs to start their first biz at home. And today it’s just as common to keep the biz located in your home.Some highly successful business were started up at someone’s kitchen table, in a spare room, or in a basement. Whether you do depends on 1) if you have the necessary space without crowding yourself; 2) the biz meets local or government guidelines for a home biz.Can’t start your biz at home? There are tons of other places you can rent inexpensively. Share space with another biz. Lease a building or space from someone you know. Lease a garage or other small location. Remember, rent like a mortgage will usually be your biggest expense. Don’t rush into it unnecessarily.

The entrepreneurial bug has bitten you. You’ve been organizing your new biz for months.  And ready to throw your new biz doors open.  Yet you’re stuck in your day job. And ready to tell the boss just what to do with it. It’s wasted time. Time better spent on your new venture. But is quitting such a great idea? 

I’ve started up more than my share of businesses. And work with tons of other entrepreneurs. And if it’s one thing we’ve learned. It’s leaving your day job before you have plans in place for your new venture can spell t.r.o.u.b.l.e.

Why’s that you ask? Because getting your new biz off to a great start requires that you be in a “good place”. Both personally and financially.

Here’s 5 Valuable Tips for Making a Successful Transition: 

1. Consider all financial responsibilities. Especially recurring ones. Plus, either pay off, or pay down, as many bills as possible. And start doing it long before the scheduled biz opening. Not only will this help create less financial stress, you’re creating a better scenario should you need a loan or line of biz credit. Plus, without that personal stress, you can better concentrate on your business.

2.  Start a savings plan.  Or increase a current one.

3.  Develop a plan for your family’s needs. Make sure everyone’s taken care of. Kids have rides to and from school, or daycare drop off and pick up, for example. In other words, make sure a good portion of recurring details are planned for.

4.  Apply for credit; and/or an increase in credit card limit. As you well know, it’s easier to obtain loans and credit cards when you have a source of income. For most, that’s a job. Since whether you receive a loan is partly based on how you’ll repay it, as a new entrepreneur - with no biz history to fall back on - it‘s best to apply for loans and credit while you have a day job.

5.  Create one or two additional streams of income. Consider the Internet. For example, become an affiliate of others products; sell products of your own on Ebay and other sites; do consulting or free lance work; set up a website and sell products you’ve bought from others. Or, take a part time job. Having another income eliminates worry or anxiety about paying bills or providing for your family.  One last word: Should you require health insurance to cover medical scenarios, you may think about working longer. Until you can obtain your own.You can always hire someone to run the biz until you can break from your day job and take over. Or, what about opening the biz on weekends, early mornings, evening and/or holidays. Until you can get it up and running full time. Many businesses were started part time in people’s garages and basements; even at kitchen tables.