Step # 1 - Recognize that you will have a lower income for awhile. If you are leaving a high-paying job to start your own business, you will have a gap in your finances for awhile. Prepare yourself financially for the new business by setting aside some extra money. This money will be the money you need to live off while the new business starts to grow. You can also consider getting a second job or a part-time job while you are setting up everything to start your new business.

Step # 2 - Reduce your personal expenses. Since the business will require co-signing on the loans in your name, you need to be ready to handle the financial pressures of owning your own business. If you can afford to cut out a few things from your regular budget, you should do so now. Once you have your personal finances in order, you can begin looking for business loans.

Step # 3 - Create your business plan and ideas. Small businesses generally start from a simple idea. If there is a product or service out there that you think you can do better, create a business plan and start doing it. The business plan doesn't have to be huge, just long enough to include the basic information. You must decide how much you want to charge for your product or service, how much it will cost to create it, how much it will cost to deliver it, and the size of your market audience. A good business plan needs to include information about your competitors and how you plan to compete against them.

Step # 4 - Look for financing. One of the largest risks you will take on is the amount of financing your business needs to get started. You need to determine how you plan to pay the production costs, and if you need to rent office space. If you hire employees, their monthly wages need to be added into the financing costs. The loan you obtain for the business will also look at your personal credit rating. If you are considered a high-risk lender, you will not be able to obtain the loan. Consider having a co-signer if you are having difficulties obtaining the loan.

Step # 5 - Create a marketing plan. Once you have the money, the space, and the products, you need to start spreading the word. Marketing is the best way to inform the public about your new product. Marketing may sound like a confusing business, but it really isn't. You do not need to spend thousands of dollars on marketing in order to let people know your company exists. Instead start out small, with local flyers, word-of-mouth, and promotions. Once you have conquered your local area, it will be easier to spread your company out to larger areas.

Step # 6 - Stay organized. One of the largest reasons companies fail is because they do not keep accurate records and they do not organize their books. Use software programs to track all of your customer information and financial information. Keeping your books clean will protect your business from losing money. The customer information needs to be clear and concise. When you need to retrieve your customer database, it should take a matter of minutes, not hours. Your customers are your best asset and they will help your business grow.