Before you launch a small business, do your homework

Some people dream of building dynamic, fast-paced careers. They work hard for promotions and salary increases until they're satisfied with their income and level of authority. Other people aim for a perfect balance between work and home. They yearn for enough money to cover the bills and plenty of time to spend with family and friends.

Still others want to create, grow or cook something from scratch and sell their goods to the public. They yearn to make a living based on their own creativity and resourcefulness. Luckily, there is a growing market for these small-business owners. Many consumers gladly spend a few extra bucks for handmade, homegrown items.

Whether you are interested in selling beaded necklaces or opening a mobile gourmet restaurant, developing a small, independent business takes patience and planning. Here are a few guidelines to help you get started:

Get to know your product and market. First, think of a product that excites you and figure out if you can reasonably make, cultivate, bake or cook enough inventory to make your business worthwhile. Sausage sandwiches. French fries. Knit scarves. Hand-built birdhouses. Jam. Homegrown tomatoes. Bread. All of these items require significant labor and suitable work and storage space.

Next, determine if there is a profitable market for your specific product. Be honest with yourself. If there are already two ice cream trucks in your neighborhood, a third one probably won't generate much revenue. Come up with a different idea.

Identify the best ways to reach your targeted market. Many vendors develop loyal customers at fairs, craft shows, farmers' markets, expos and holiday bazaars. They design original displays, attention-grabbing signage and attractive "store fronts" to make a powerful impact at each venue.

Manage your money. Before you purchase a trailer, pit barbecue and side of beef, sit down at your desk and crunch the numbers. How much will it cost to buy the equipment and materials you need? How about insurance? Travel expenses? Tents and tables to showcase your goods? What about fees for certain venues and events? Business and food-service licenses?

Do your research and list every possible expense, from spatulas to part-time employees. It's important to know – really know – that you can afford your venture. Once you pinpoint your start-up and recurring costs, you can define your pricing structure and understand how much revenue you need in order to develop a profitable and rewarding business.

Write up a plan. A detailed and well-considered business plan will help ensure the stability and success of your venture. Pull together the information you gathered about your product, expenses and market. Add more facts about your objectives, management experience or training, suppliers, sales plan and financial forecasts.

Finally, protect yourself by scrutinizing your plan and anticipating problems that might occur. Stash away some money so you can pay your living expenses while you establish your business. And don't forget to pay your taxes.

There are many ways to make a living. If you're a small-business entrepreneur at heart, consider selling your homemade or homegrown goods to the public. Begin with a brainstorming session and follow up with research, preparation and a solid business plan to build your new business from scratch.

Eve can be reached at Eve.GetAJob@gmail.com.