4. Write a Bulletproof Business Plan
One of the most frequently underestimated things in the process of building your own business is writing a business plan. Many people will say they don’t need to write the plan, since it is in their head. They are mistaken. The plan that is now written is not real because nobody besides you can see or know it. Moreover, a written plan makes all the advantages and shortcomings of the decision clear. The risks are written down and evaluated. The financial growth and income are all counted and carefully thought of. Finally, if you plan to attract some investments for your business development, a well-written business plan will fill the credibility gap and can persuade your potential investors.

A good business plan should include:
• the description of your product or service;
• the team who how each member will participate in the business;
• market data and tests that will prove your product or service will sell;
• the essential skills that will drive profits;
• estimates for startup costs;
• projections for sales and profits;
• a break-even analysis and long-term goals for the company.

It may turn out that after you wrote your business plan, it turned out to be unprofitable. This is exactly what the business plan is for. In such a case, you should look through it and change any necessary details until the prospective profits satisfy you.

5. Raise Money
Raising money is the step one needs to take before the business starts running. It is always easier to do it when you have time than searching for some investments under financial pressure. It is recommended to use as little personal money for starting your own business as possible to minimize risk. The best thing is to take a loan from a bank. In case, the latter doesn’t give you loan, you may ask for advice how to change your plan, so that the loan is granted.
For people with short credit history, taking a loan from family members is an option. However, the whole procedure should be as official and professionally-administered as possible, to eliminate any future misunderstandings and inconvenience.

6. Follow the Money
It is better to prepare some money for your next six month living, for you are unlikely to have noticeable income during this time. Once you have started your business, regularly compare your real income and expenses with the ones you predicted in your plan.
Finally, the crucial thing is to stay focused on your financial goals. One of the first causes of failure is diffusion of focus. The two most important goals you would have through your first year of running business are meeting or exceeding your projections and serving your customers right.