New Entrepreneurs
If you can answer an enthusiastic and honest YES to the following questions, you may want to be a New Entrepreneur!
1. Have you ever worked in a business similar to what you are planning to start?
2. Would people that know you say you are well suited to be self-employed?
3. Do you have support for your business from family and friends?
4. Have you ever taken a course or seminar designed to teach you how to start and manage a small business? (Check out http://www.businessdegree.net)
5. Have you discussed your business idea, business plan or proposed business with a business coach or counselor, such as a faculty advisor, Small Business Development Center counselor or other economic development advisor?
6. Do you have a family member or relative who owns a business?
7. Do you consider yourself a leader and self-starter?
8. Would other people consider you a leader?
9. Do you have enough confidence in yourself and your abilities to sustain yourself in business, if or when things get tough?
10. Do you like to make your own decisions?
11. Are you prepared, if needed, to temporarily lower your standard of living until your business is firmly established?
12. Do others turn to you for help in making decisions?
13. Are you willing to commit long hours to make your business work?
14. Would others consider you a team-player?
You can complete the full quiz at the Small Business Assocation's website at www.web.sba.gov
2. Would people that know you say you are well suited to be self-employed?
3. Do you have support for your business from family and friends?
4. Have you ever taken a course or seminar designed to teach you how to start and manage a small business? (Check out http://www.businessdegree.net)
5. Have you discussed your business idea, business plan or proposed business with a business coach or counselor, such as a faculty advisor, Small Business Development Center counselor or other economic development advisor?
6. Do you have a family member or relative who owns a business?
7. Do you consider yourself a leader and self-starter?
8. Would other people consider you a leader?
9. Do you have enough confidence in yourself and your abilities to sustain yourself in business, if or when things get tough?
10. Do you like to make your own decisions?
11. Are you prepared, if needed, to temporarily lower your standard of living until your business is firmly established?
12. Do others turn to you for help in making decisions?
13. Are you willing to commit long hours to make your business work?
14. Would others consider you a team-player?
You can complete the full quiz at the Small Business Assocation's website at www.web.sba.gov
Warning!
You do not want to hear this, but as an entrepreneur, I can tell you that most small businesses fail. Half will fail by the end of the first year; 90% by year five. Why? Here are some reasons:
1. No demand for the products.
2. Owner and salesperson are not smiley, well-groomed and outgoing.
3. Bad location, bad location, bad location.
4. No advertising / marketing or ineffective advertising / marketing.
5. Not enough money saved up ahead of time. (For students, this is particularly challenging!)
6. Competition is stiff.
7. Not enough profit margin.
8. Overexpansion / overextension.
9. Inability to adapt to a changing marketplace
10. Lack of "due diligence." A business is never "safe." A small negative can lead to big failure.
I encourage you to read Suite101: Why Small Businesses Fail: And How You Can Make Your Small Business a Big Success.
You do not want to hear this, but as an entrepreneur, I can tell you that most small businesses fail. Half will fail by the end of the first year; 90% by year five. Why? Here are some reasons:
1. No demand for the products.
2. Owner and salesperson are not smiley, well-groomed and outgoing.
3. Bad location, bad location, bad location.
4. No advertising / marketing or ineffective advertising / marketing.
5. Not enough money saved up ahead of time. (For students, this is particularly challenging!)
6. Competition is stiff.
7. Not enough profit margin.
8. Overexpansion / overextension.
9. Inability to adapt to a changing marketplace
10. Lack of "due diligence." A business is never "safe." A small negative can lead to big failure.
I encourage you to read Suite101: Why Small Businesses Fail: And How You Can Make Your Small Business a Big Success.
Starting Up a Business vs. Buying Franchise vs. Taking Over an Existing Business
You may want to consider buying (with help) a franchise because it will force you to do all of the above, plus you have thousands of hours of accumulated expertise to tap into. Check out the pros of franchise ownership.
A third option is to buy an established business. You get the autonony of owning your own business plus the knowledge of the past experiences of the former owner. Check out buying an existing business vs. franchising.
*****
There are lots of resources for wannabe New Entrepreneurs.
Check out:
www.regionalbusiness.ca
www.canadabusiness.ca
www.canadaone.com
www.sba.gov
www.entrepreneur.com
www.smallbusiness.com
And go for the gold!
You may want to consider buying (with help) a franchise because it will force you to do all of the above, plus you have thousands of hours of accumulated expertise to tap into. Check out the pros of franchise ownership.
A third option is to buy an established business. You get the autonony of owning your own business plus the knowledge of the past experiences of the former owner. Check out buying an existing business vs. franchising.
*****
There are lots of resources for wannabe New Entrepreneurs.
Check out:
www.regionalbusiness.ca
www.canadabusiness.ca
www.canadaone.com
www.sba.gov
www.entrepreneur.com
www.smallbusiness.com
And go for the gold!