I was asked this question in a comment under an earlier post:

I am starting a very small company and I am the only employee, and want to keep it that way until I know when and how to take my next step. Could you recommend where to start?

I didn’t publish the comment because it didn’t fit the post, but it’s a question I get a lot, so I’m posting an answer here instead:

1. Sorry, everybody hates getting this reminder, but: starting a business isn’t a one-size-fits-all project. I’ll try to help, but recognize that there are many different recipes around. Look at this entrepreneur.com website, sba.gov, or bplans.com, for example: the problem is too much information, making it hard to choose which set of steps to follow.
2. Make sure you’ve got the heart of a plan: that’s not a document, at least not if you don’t want it to be. It’s thinking: understanding who you are and how you’re different, what you’re selling, who wants it, how much they expect to pay, and what special focus makes you different and better. You don’t have to write it up. Maybe you put it on your computer, as simple bullet points. Talk to people you know and trust who might give useful advice and feedback. Is it just an idea, or is it a real business opportunity? The difference, in a nutshell, is that a real opportunity means it will make enough money to sustain itself. It means people want to buy what you’re selling. Is there a real business opportunity? Or is it just an idea?
3. The details depend on your specifics, which is why you want to sketch out the flesh and bones of a plan. This is plan-as-you-go style, so plan the obvious parts quickly and then refine as you go. The core of a plan is the assumptions, specific tasks with dates and deadlines and budgets, sales forecast, expense budget, and cash flow.  That’s going to cover essentials like naming, legal establishment, local requirements, starting costs, tasks like the website and outfitting the office, and so on. It’s hard to generalize here, because so much depends on your business specifics.
4. Plan, but don’t sweat the plan as document. Keep it on your computer if you don’t have to show it to anybody else. Keep it simple and practical. And don’t worry about getting all the details down and locked in; things are going to change, so keep it fluid and flexible.  The plan is valuable because it makes adjustments easier, and serves as a point of reference, not because it isn’t supposed to change.

And then get going.

(Image: istockphoto.com)

Books: falling out of fashion, perhaps, but – business books, for sure – still so amazingly practical. What’s an hour of your time worth? How much time can a business book save? I posted here last week, in this context, about John Jantsch’s new book on referral marketing. And today it’s Melinda Emerson’s Become Your Own Boss in 12 Months. I love the book, I’ve got mixed feelings about its title, and I particularly like its real-world common sense.

Real-world common sense like starting at the beginning, not how to go out on your own, precisely, but on whether you want to: Melinda starts with a chapter called “So You Think You Want to be an Entrepreneur.” That’s right, really, and very important in this topic area. So she challenges you to think about what you really want, and whether your idea will work, and do you love what you want to do.

Here’s a great quote from that chapter:

Suddenly becoming a one-salary family is tricky. Make sure that your spouse is behind your decision. If not, your dream can turn into a nightmare.

And another, highlighting Melinda’s offering of real-world hard-nosed “been there done that” insight:

Of course, the best business idea in the world isn’t worth anything if you run out of money. There’s no way around it: starting a business is expensive. It will be a while before you see a return on your investment. That’s why, before you hand the boss your walking papers and box up the personal things in your cubicle, you’d better make sure you and your family are on solid financial ground.

So what don’t I like? Nothing serious; actually, I admit it, these are petty complaints:

• The phrase “become your own boss” in the title. It’s actually a pet peeve of mine: you start a business, you aren’t going to be your own boss; your customers become your boss. But that really has nothing to do with the book. That’s just me.
• The 12-months time frame: Sabrina Parsons and I wrote 3 Weeks to Startup (2008, Entrepreneur Press), so I feel like I have to say that. Still Melinda explains the 12 months extremely well in her second chapter (titled “Why Does it Take Twelve Months”). And I really like the way she schedules the tasks through the months, giving things time to simmer. It goes very well with her overall tone of good practical advice.

What do I like? Lots:

• Melinda is extremely good at keeping the business in the larger context of your whole life. That’s an excellent reminder. Her third chapter focuses on “your life plan” and it’s dripping with good advice, things you really should be considering.
• Her 12-month plan presents a process very well. At the beginning, three months of getting reading, including your life plan in the first, then financial plan, business model, lawyer, accountant. I’ve been there. This is how things really work. Then nine months of getting set, including focus, niche marketing, of course business planning, financing, building a team, recruiting, branding, and so on. Then comes the actual launch, with good discussions of bookkeeping, maintaining marketing, and so on. Throughout, it’s good advice, well organized, clearly written.

So where do I get to the post title above about 4 essential books? This post is about the newest of the four, Melinda Emerson’s Become Your Own Boss in 12 Months. And I’ve already mentioned the one I co-authored, 3 Weeks to Startup. So the other two are two books I like so much I can’t post on this topic without including them. I’ve posted on both of these before: Pamela Slim’s Escape From Cubicle Nation and Guy Kawasaki’s The Art of the Start. Each has a different point of view, each covers different elements.

Starting a business is a big deal. If you’re serious about it, read all four of these books.

Are you teaching a class on starting a business? If you are, then I’d like you to be aware of course.bplans.com.

That’s where I’ve put up a full curriculum/syllabus including lesson plans, exercises and assignments, online videos, and more than a dozen PowerPoint slide presentations complete with slide-by-slide notes and distribution-friendly photos and graphics.

This is material I’ve worked on for years, originally just for my own use as I taught a course in starting a business for undergrads at the University of Oregon. I’m not going to be teaching that course this spring, after 11 years of it, because I’m more involved with angel investment via the Willamette Angel Conference. But I do want to make it available to others. Why not?

The whole curriculum is free to professors on that site. And, just so you understand the motivation, yes, the coursework requires Business Plan Pro, Guy Kawasaki’s The Art of the Start, and my books the Plan-As-You-Go Business Plan and 3 Weeks to Startup (co-authored with Sabrina Parsons). So my company, Palo Alto Software, does make money by selling those to your students. But we have academic pricing, so your students can get all three for less than the $130 average cost of an entrepreneurship textbook. I’d like to think everybody wins.

That’s at course.bplans.com. You’ll find instructions there to get your free registration as a teacher. This was done especially for SBDCs, members of the National Association for Community College Entrepreneurship, community colleges and undergrad business education classes. We’ve been a sponsor of the ASBDC network for 15 years now and of NACCE for two years; so we like to think we understand those needs.

This is the third of three parts. The first part appeared here a month ago, and the second here two weeks ago. All three were published first on Entrepreneur.com and are based on the book 3 Weeks to Startup, which I co-authored with Sabrina Parsons. That book, published by Entrepreneur Press, came out in the autumn of 2008. It’s built on the idea that most how-to-start books fall back on the older, pre-web ways to get things done; and that today, because of the tools available, three weeks is still credible.

Day 15: Think about your location.

Most people know they’re either going to work out of their home or they know where their office will be. They’re considering the right location, how it should look, where it should be, what else is nearby and so on.

Even if it’s a home office, you’ve probably been thinking about it. Now’s the time to make sure you’re set up. Desk, computer, telephone, internet, quiet if you need it, view or not, the whole nine yards.

For a retail shop, workshop or office space, if you haven’t done so already, start looking. It’s almost time to make a decision.

There are brokers to help, and they won’t charge you because they get their commission from the landlords (which you should keep in mind as you deal with them because it’s always good to remember who’s paying). Find a broker who’ll work with you; one who listens to you about what you want and don’t want.

Today take steps to establish the location, whether it’s simply adding desks and phones in your home office or making calls to revamp a restaurant or manufacturing plant. For some people and businesses, this takes more than three weeks. Sometimes you can’t even lock in the location you want in that time. But start planning the office space in which you want to work, as this can create the most lag time.

Day 16: Set up your accounts.

With some good accounting software, you can keep track of every transaction–every check, each invoice you receive and those you send out. Keep careful track of spending and invoice categories, and before you know it, you’re doing the bookkeeping. The best way to choose your new accounting software is to check with your bank so your system and theirs will be compatible. That will save you endless frustration with inputting records.

Day 17: Create the legal documents.

Way back in Week 1, you got together with the others involved and wrote down your agreements on who is supposed to own how much of the business, who does what and who is putting in how much money. And you started looking at possible names for the business. Today, get it locked in by creating the legal entity online, talking to an attorney, or both.

Do yourself a favor, though, before you start the attorney’s meter running: Make sure you understand the basic tradeoffs, so you can spend the billable attorney time making the right choices, rather than just understanding the options. We don’t recommend setting up your business without an attorney (online or not), but if you get informed first, you’ll reduce the expense.

Day 18: Start hiring.
You’re nearing the end of your three-week startup. Just three days left, so if you’re going to have employees, it’s time to hire them or at least begin hiring. You started the recruiting process last week, so you should have some people in mind.

Don’t do job interviews without first going over a simple review of what you can and can’t say. A lot of what would at first glance seem like common sense is technically illegal. For example, you’re not supposed to ask someone his or her age or marital status because that information can lead to the appearance or suspicion of discrimination.

Day 19: Get funding.

This is another one that depends on the details. It can be as easy as deciding to spend a few thousand dollars you already have or as hard as raising millions of dollars from professional investors.

Your simple startup, involving a home office and a computer, might need nothing more than what you can get at Office Depot in an afternoon.

If you have to raise more money than you have, you need to write a detailed business plan, find potential investors and do a lot more work. If you’re looking for professional investment, you almost certainly won’t get that in three weeks (although there are some rare exceptions). You can still get your business going with the money you can get quickly. That way you look much more attractive to investors.

Day 20: Think about opening day.

This should be fun: Imagine the big party, the searchlights beaming into the sky, a brass band. Well, maybe not all that, but opening day is a good event to start your business marketing right.

Plan your opening day, and make sure everyone knows about it. This is the chance to write a press release, talk to local or trade reporters and generally let people know about your business. You want to build buzz so that when you open, people are aware of you.

Day 21: Start your business.

You’re up and running, and in three weeks, just as we had hoped. That makes today the first day of the rest of your business.

Today you’ll want to take another day to make the sale.

Focus today and see how many customers you can get in the door, figuratively or literally, depending on your business.

On your first day, remember to observe what’s going right, what’s going wrong and to note what could be better.

Your business will quickly become different from what you expected, and that’s OK. The key is to record what’s different and why, and make course corrections. In the real world, your planning should become management. So review your plan vs. actual frequently, and run your business better.

This is the second of three parts. The first part appeared here a month ago. All three were published first on Entrepreneur.com, and are based on the book 3 Weeks to Startup, which I co-authored along with Sabrina Parsons.  That book, published by Entrepreneur Press, came out in the autumn of 2008. It’s built on the idea that most how-to-start books fall back on the older, pre-Web ways to get things done; and that today, because of the tools available, 3 weeks is still credible.

Day 8: Plan your marketing strategy.

Think about your target market. Imagine a hypothetical, ideal customer. Determine his or her age, gender, job, favorite media and family situation. It’s important to know your customer well.

What’s your message? Can you say it in a single sentence? What if you have just one sentence that your customers will listen to? Where would you send that message? How would you reach them?

Think about your marketing strategy and implementation details. Take the time to go through a short but focused marketing plan to make sure you understand what it will take to market your business.

Day 9: Develop your look and feel.

Start developing a sense of the look and feel of your company as your buyers will see it. What will your logo look like? What sense will it convey? Old-fashioned? Trustworthy? Leading edge? Everybody has a brand. What will yours be? How will you get that idea across to customers and potential customers?

Develop your look and feel through logos, signs, letterhead and graphic standards. These are your branding essentials, and you need to have them in place before you get much further.

Day 10: Start building your website.

Have you started your website already? Have you been thinking about it? Today’s the day to get going with that.

If you’re building a Web 2.0 application or any website that’s core to your business, then you might have to settle for simply having begun by the end of the three weeks.

For most businesses, you can have a website built very quickly. Think about the basic elements of your website, and at least get a site up with basic information about you, your business, your products, and your services.

These days there are some good shortcuts available: take a look at TypePad, WordPress, and blogger platforms, for example. These were built for blogging but can apply to many small sites, with little to no  formatting work.

Day 11: Think about how you’re going to get paid.

Think about how your customers will pay you. If you’re going to be selling to consumers, then you probably want to establish a merchant account so you can accept credit cards.

These days, because of the online vendors, there are a lot more options. In the old days you had to go straight to your favorite local bank, which had a detailed and time-consuming process. These days, you have the option of setting yourself up with some Web stores (like Amazon, Yahoo!, and others) that can handle that part of it for you.

If you’re selling to businesses, then think about invoices and credit policies for business customers. There’s no underestimating how important getting paid is.

Day 12: Try making a sale.

Have you been able to make a sale yet? Maybe you should take today to peddle your goods. Even though you’re not fully established yet, lots of businesses (maybe most of them) start selling before they’re fully launched.

This is where you get to make sure that people want to buy what you’re selling.

Even if you can’t make a sale, because things are ready, talk somebody through it. The selling will continue for as long as your business is open, but we wanted to include it here as well because so many businesses are born at the moment the first customer says “yes.”

Day 13: Get an insurance policy.

Time to talk to an insurance broker, and get your business insurance started. These days, you can do a lot of research or even do the whole thing online. And if not, remember the old-fashioned telephone tree-style of finding the right people. Talk to any insurance broker you can think of, ask some questions, and if he or she isn’t the right one, ask who else you should talk to. Find the right person by asking the wrong person who else you should talk to.

In the doing, you’ll find out what kinds of insurance are appropriate for the type of business you’re starting.

Day 14: Build your dream team.

Have you been thinking about how to build your team? Do you know the people you want to bring on? It’s time to start ironing down the team and the employees, and start the recruiting process. Depending on your specifics, you’ll likely need job descriptions, and you’ll need to place ads on the right websites.

Start thinking about your employee list. Who will you need to help you out when you actually open for business? Will it be just you and your business partner? Do you need to hire service people? Drivers? Designers?

To get started, take another look at the financial planning you did in Week 1. See who you can afford to hire and start looking.

I’m happy to see that week 1 of our book 3 Weeks to Startup was featured yesterday on msnbc.com. I’m co-author of this one, along with Sabrina Parsons.

Here’s what we’re saying about the idea portion of it:

Day 1: Start with a viable idea.
Start thinking about whether your core idea makes a viable business.
How do you know? Well, honestly, you don’t always. It does help to take a step back from the idea, try to be honest and objective with yourself, and ask these questions:

1. Does anybody need (or want) what we’re going to be selling? How great is the need, or how much do they want it? Think about it in commonsense terms. Vigorous market research will come later.
2. Will they pay for it? While they say people will beat a path to your door for a better mousetrap, that’s not always true. Think about it in your case.
3. Are they already paying for something else? Can you go from that to honestly believing they’ll switch and pay for what you’re going to offer?
4. How will you focus? Do you have a strategy, or are you planning to do everything for everybody?

The answers to these questions may seem obvious, but the point of this exercise is to give yourself a reality check. Essentially, you’re asking whether there’s a market for your product or service. If you’re laying out a lot of money, and especially if that’s somebody else’s money (investors), it’s worth it to do the background research.

3 Weeks to Startup: Week 1 – Entrepreneur.com- msnbc.com

Palo Alto Software’s Tim Berry and Sabrina Parsons are blogging at Entrepreneur.com for the next several weeks in conjunction with their new book, 3 Weeks to Startup.

Each week they will sum up chapters in their book on starting your business in three weeks.

You can read Week 1 by going to the Starting a Business blog

To purchase 3 Weeks to Startup visit Amazon, Barnes & Noble or your favorite bookseller.