If you’re a Latino looking to start a new business, these tips are here to help you!

According to the 2016 U.S. Census, out of the 27.6 million businesses in the country, 3.3 million are owned by Hispanics. This is indeed a very significant number and it shows the participation of the Latino community in the country’s economy.

But regardless of ethnicity, starting a new business is no easy task and there are many factors you should take into consideration before starting this venture.

Below we give you 5 tips to help you through this difficult process.

1. Have a clear plan

Having a good idea is NOT enough! To develop a successful business you need to do your homework and create a complete business plan.

Your business plan should include the following points:

– Concept: A description of the company and its products or services.

– Market analysis: It details the target audience demographic and provides a general overview of the industry.

– Strategy: What will the company do to achieve success?

– Organization: A description of how the company will operate.

– Financials: This sections has to do with numbers, including budget and revenue projections, etc.

2. Just do it!

It might seem like an obvious point, but many times fear and indecision can stop you from doing something you want.

If you have a good idea and you have a clear plan, you should just go for it! Failure is always a possibility but you have to overcome this fear to actually achieve something.

3. Be credit-ready

Once you have an idea and a plan, you will need financing for your business.

But before you start pursuing financing you should get “credit ready”. This means that you should do your research to find the right bank for you and learn all of the requirements you will need to apply for a loan or line of credit.

Your business plan will come in handy in this process because before applying for the loan you will need to show that your business will generate a steady cash flow.

4. Get the right information and guidance

If you’re starting a new business, you should know that you’re not alone. In fact, there are many free resources available to you, such as the SBA (Small Business Administration) website or the Minority Business Development Centers.

We encourage you to find all the available tools and take advantage of them.

5. Find a balance between passion and wisdom

Latinos are passionate people, there’s no doubt about it, and passion is a key ingredient to create a successful business.

Passion will help you move forward, but you can’t let passion take over all you decisions. To make the right decisions you need wisdom and knowledge.

A good business will find the right balance between these important elements.