May 16, 2004
The Muskegon Chronicle

Jim Edmonson, the new president of Muskegon Area First, has helped numerous businesses as an economic developer in three communities and has started and worked in several of his own family businesses. Here are Edmonson’s 10 steps to a successful business start:

• Prepare a business plan. You must have one and you must prepare it yourself. Do not use software that simply prompts you to fill in the blanks. You need to be thinking, typing and calculating. Revise your business plan every three months during start-up.

• Research costs; don’t guess. Don’t use lowest prices either.

• Understand your market. Be able to explain in detail your target customers, their demographics, your competitors and product price structure.

• Identify sales targets and prepare a marketing plan. Network with friends, clubs, church members, trade shows and associations and build a data base. Gather information on your customers and add them to your list. Budget an adequate amount of funds for advertising and public relations.

• Have enough cash for an 18- to 24-month start-up period.

• Location, Location, Location I. It’s an old adage but still applies to any and all businesses. Rent if you can until you see how the business takes off. Find flex space or start in an incubator setting if you can then progressively grow.

• Location, Location, Location II. Consider location to markets or customers, to labor force and to your suppliers or raw materials. Select a location that allows you to operate lean.

• Manpower. Use the minimal number of employees required to start. Be flexible and add or shrink as needed. Act fast, cut back quickly when you have to. Train, train, and retrain. Learning is a lifelong journey and a valuable aspect of your company.

• Your personal traits. Entrepreneurs need to be flexible and troubleshooters. You need to make decisions quickly and often. If you make a bad decision, make another decision to correct it. You need to be tenacious; don’t take no for an answer. Time management and organizational skills are a must. If you need training in these areas, get it.

• Be ready to change your life. You need to be prepared to live your business 24 hours a day. Prepare your family for your commitment and don’t give up your regular job until you must when the business can support you adequately.

© 2004 Muskegon Chronicle. Used with permission