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Starting Your Own Business

Part I

Is Entrepreneurship For You?

In business, there are no guarantees. But there can be many pitfalls if you don't plan well, preparation, and have insight. Make sure there is a need for what you what you want to sell or the service you want to provide. Think of it like this, what must people still buy or have even if they are broke? What do you know about it? Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business.

Are you a self-starter? Do you get bored quickly? Is this a venture you want to take on because you know it or you think it is a money making project? It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities? Do you get irritated easily? Will you need to have much person to person contact? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it? Remember to be honest when answering these questions.

How good are you at making decisions? Do you make decisions based on feelings and emotions or facts? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business? There will be times you will go to bed with business on the brain. There will times when you do not feel that you have enough hours in the day. You have no personal life. You will not be able to go do what you once did. IE go out. But then that will depend on your disciples and dedications. Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-­hour workdays every week? Are you ready?

How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization ­ of financial, inventory, schedules, and production ­can help you avoid many pitfalls.

Is your drive strong enough? It's not about what you want to do. It's about what you are able to do. Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout. What motivates you? What can do to prevent you from getting bored? What are you going to do keeping you motivated when times get rough? What is your favorite past time? This is important because this is what will help in keeping you sane, when you starting growing through the "Ground Hog" syndrome. Everyday feeling like yesterday, when tomorrow becomes today.

How will the business affect your family? You will need their commitment also. You will be taking from them what you once gave them. Your hours will be more dedicated to the business. You must treat this business like a baby, up until entering kindergarten. You must feed the business, at times change things within the business and nurture the business. The first few years of business start­up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term. What family activities will the business cut into?

Why Small Businesses Fail

Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years. In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

* Lack of experience

* Insufficient capital (money)

* Poor location

* Poor inventory management

* Over-investment in fixed assets

* Poor credit arrangements

* Personal use of business funds

* Unexpected growth

* Competition

* Low sales

On the Upside

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

You will be your own boss.

* Earning and growth potential are far greater.

* A new venture is as exciting as it is risky.

* Running a business provides endless challenge and opportunities for learning.

* Hard work and long hours directly benefit you, rather than increasing profits for someone

else.

Do you think you have what it takes? Send me a reply. What kind of business or service do you plan to provide? Will it be here in America, or in our much needed country of Haiti?

(SBA - Small Business Association)