Some reasons are better than others, none are wrong. Be aware, however, that there are trade-offs. For example, you can escape the 9-to-5 daily routine, but you may replace it with a 6-to-10 p.m. routine.

Also, take the time to think about your personality and abilities. Starting and managing a business takes motivation, desire and talent. It also takes research and planning but essentially it all boils down to two key elements: passion and perseverance. While passion will get you started, it is perseverance that will ensure you keep going.

Planting the seed

Many never carry their idea from conception to reality. You can get so caught up in research and paper work that you lose perspective and/or become discouraged and fail to initiate action. In other words, starting a business can be a very intimidating process so it helps to know where to begin.

Begin by determining how you want to form your business. That is, what is the best legal structure for your business? Most small businesses start out as either a sole proprietorship, partnership or limited liability company.

A sole proprietorship is basically a "one man show". It is when an individual has sole ownership of a business. A partnership, on the other hand, is owned by at least two or up to 20 persons. Both types are easily formed and do not have to meet the legal requirements of a limited liability company.

To form a private limited liability company there must be at least two and a maximum of 20 shareholders. The last word in the name must be 'limited'. Such a company is legally a separate entity from the owners and thus its shareholders are protected from heavy losses in the event of company failure.

Each type of legal structure has its distinct advantages and disadvantages, one example being that in sole proprietorship, income tax is paid at a lower rate than in a company. It will be up to the entrepreneur to determine which structure best fits his or her specific needs and circumstances.

Once this major decision has been made, the next important thing to do is to develop a thorough business plan. The business plan is your blueprint for success. It sets down the business description, goals for the business, assists in analysing the feasibility of a new business, defines your customers and competitors, and points out your strengths and weaknesses. It also details your plans for the future.

Its formulation is an essential step. Not one to be taken lightly and/or skipped over as it will help you think through some important issues that you may not have considered yet. For example: What insurance coverage will be needed? What financing will I need? What equipment and supplies will I need? Once the plan is developed, refer to it often as it should also provide milestones to gauge your success.

Financing

How much money will it take to start a business? No one can answer that but you. There is a vast difference between businesses. For example, a service business usually takes much less capital investment than a manufacturing firm.

A properly done business plan will have identified the amount of start up capital required (for building and/or leasehold improvements, licences, equipment, legal and incorporation fees, and materials) as well as operating capital required (rent, utilities, wages and salaries, benefits, telephone and transportation).

Sufficient capital is essential for both the start-up and continuation of a business. In fact, inadequate financing is one of the major causes of business failure. You will need enough money to get through the period of time before your business starts turning a profit. Ideally, you should have a 12-month cushion to handle all of your expenses with no revenue from the business.

There are numerous ways to finance a business including personal savings, loans from relatives or friends, traditional loans, Government loans. There are numerous agencies that offer credit to the small and micro-enterprise sector including credit unions, the Self-Start Fund (SSF), the Agency for the Selection and Support of Individuals Starting Trade (ASSIST), Credit Organisation for Pre-Micro Enterprises (COPE) and the list goes on. However, be aware that many lenders perceive small businesses as risky investments.

Regulations and red tape

This is the part of business ventures that many people dread. Getting through the maze of Government regulations can certainly be one of the most confusing aspects of doing business. But while this process may be intimidating, it is important to do it correctly since non-compliance can result in costly penalties.

Under the Business Name Act of 1934, it is illegal to operate a business without registering with the Office of the Registrar of Companies. A sole proprietorship or a partnership may operate under a specific business name. This name should be registered with the Registrar by completing a BN1 or BN2 form, respectively. If the business is to be involved in trading, photographs will also be required. The current cost of registration is $1,500. A Business Name certification is valid for three years from the date of registration.

Unfortunately, the business names of these two types of businesses are not protected through registration as is the case with a limited liability company. When the name for a company is chosen, a thorough name search must be done on that name at the Registrar to ensure that it is available. Also, there are certain documents that must be prepared and submitted in order to complete incorporation of a company in Jamaica: Memorandum of Association, Articles of Association and Declaration of Compliance. The fee for registration is $7,000.

Some businesses require specific permits or licences in order to be legally operated. Examples include a food handler's permit, spirit licence, retail trade licence and a club licence. Insurance to protect against risk is essential for all businesses.

Other things on your paperwork agenda will include General Consumption Tax (GCT) registration, National Housing Trust (NHT) registration, Tax Compliance Certificate, Business Enterprise Number (BENO) registration, income tax registration. Some of these apply to all businesses, others do not, and of course the list could be continued.

Seek out the help of one of the many companies or organisations that provide assistance and advice for entrepreneurs. For example, The Technology Innovation Centre and the Small Business Association of Jamaica. Some of these places will also help you with the paperwork and legal issues to make the process less overwhelming.

The company begins to 'blossom'

Once you start operating your business there are certain things you should do. If you have been operating your own business for awhile and things are not going well, you should start doing these things before you go broke.

Just opening a business is not enough, you need to let potential customers know about it, get them in, and have them buy your product or service. Marketing is all of this. Your specific approach to marketing will depend on your business, your finances, who you are trying to reach, and your goals.

Open a business chequing account. This will help keep your personal and business finances separate and will provide a record of deposits and expenses. Avoid using the business account for personal expenses.

Keeping accurate and up-to-date records is crucial to a successful business. Records are the most important management and decision-making tool you possess and they come in handy at tax time too.

Unfortunately, accounting is one of those topics that makes people nervous, but keeping books does not need to be complicated. In fact, simplicity is the key to a good system for small businesses. You may want to talk to an accountant for help in setting up your system.

Besides financial records, depending on your type of business, you may need to keep track of other information, including but not limited to: inventory, telephone calls, mileage, client contacts.

It is good to have a clear and healthy approach to customer service from the outset. This is the key no matter the type of business.

Finally, there are a number of outside professionals with whom a business person will want (or need) to establish a relationship. Build a team of experts, that includes an accountant, attorney, banker, insurance agent/broker, to provide assistance or advice in their particular areas of expertise.