Archive for the ‘Getting Started’ Category:
Why is right now, in the middle of a significant recession, a great time to start a business? I’ll tell you why…the economy provides opportunities to get into business for a much lower entry cost now and the opportunity to grow a business, both during the recession and during the economic recovery that will come. It is a lot like the stock market adage — “Buy Low, Sell High.” And this economy provides the opportunity for entrepreneurs to “buy low.”
Startup Costs – Everything from retail space leases to commercial vehicles to equipment and supplies are at historically (and sometimes unbelieveable) low prices. Those businesses that supply your business are competing for customers, liquidating inventory, and working hard to be successful. They want you to be able to start a new business, both for the immediate sale and for the long term potential.
Hiring Costs – Unfortunately for the millions without a job, unemployment is at a record rate in many markets. Fortunately for you (and for your new hires), that makes hiring employees to staff your new business easier than ever. Labor prices have dropped some, but more importantly, many high quality, very reliable employees are looking for a job and can start immediately. Instead of spending months looking for the right fit, it may only take days or weeks!
Competition – While many of your competitors are struggling with too high rents, too much debt, and too much unsold inventory, you will be able to open without those problems. All boats seem to float when the economy is expanding and growing. When the downturn came, however, many businesses that had poor financial management and planning, poor marketing planning and execution, and just overall poor management, were not able to hold on. If you can do it better, you can win their old customers and some new ones of your own.
The reality is that if you have ever thought of starting a business, right now is a great time to follow-through on that idea. Use the advantages you find in this recession to get your business started and growing, and develop the right habits so that when the recovery comes, you are in the right position to ride the wave!
Starting a Business? Start Here. Go Far. LaunchX.com
My last blog post provided a number of reasons that entrepreneurs choose a franchise. There are plenty of entrepreneurs that choose to start a business of their own and not purchase a franchise. Some of the reasons they give are:
- Not enough independence. Franchisees are required to open a minimum number of hours per day and days per week. You must operate the business exactly the way you are taught — no add-ons to the menu or improvements for efficiency.
- The initial franchise fee and ongoing franchise payments cut too far into the profit margin. One entrepreneur said, “If I am going to spend that much money for them to tell me how to make a sandwich, I may as well spend a month or two learning to do it on my own and pay myself with that fee.”
- For most franchises, even with a “national brand”, your individual store’s customers are only a few miles from your store. So you still have to do local marketing and advertising.
For some entrepreneurs, a franchise is the best way to own their own business. For others, after evaluating the alternatives, starting up on their own is the best choice. Whichever you choose, it is true that owning your own business is the best way to create long-term personal wealth.
Starting a Business? Start Here. Go Far. LaunchX.com
There are a number of reasons that entrepreneurs choose to purchase a franchise instead of opening their own independent business. Some of the main reasons given by entrepreneurs that own francises are:
- While you are in business for yourself, you aren’t in business by yourself. There is a “corporate” there to assist you, especially with the operations of your business.
- You get detailed instructions in how to do the operations of the business. If it isn’t a field you are familiar with, this provides a quicker start than learning on your own.
- There is the power of the existing brand recognition and the ability to rely on some “field of dreams” customers. (If you build it, they will come because they already know and like the brand).
Tune in to my next blog for the reasons why entrepreneurs choose not to purchase a franchise.
Starting a Business? Start Here. Go Far. LaunchX.com
One of the most frequent sentiments I hear among business owners is that it is a joy to come to work because I know the business is mine! It is far easier to put in 80 hour weeks, deal with unhappy customers (especially those that are unhappy before they get to your business), and juggle all the balls at work when you are the owner because you know that you will reap the rewards.
Historically, owning your own business is the best route to personal net worth and financial independence. If I told you that in five years you would never have to worry about money again, would you be willing to work for half-pay, twice as long, for those five years? Many people wouldn’t. Those that are willing make great business owners! Ready for the most demanding and most rewarding job you’ll ever enjoy going to? Start a business and get on the road to independence and wealth!
Starting a Business? Don’t Know Where to Start? Start Here. Go Far. LaunchX.com
This posting, 10 Twitter Applications for Small Business, provides descriptions and links to some twitter apps that you may not have seen before. With the reality of any small business, whether just starting or long-standing, being that more things have to be done in less time, you may be able to find a tool or two on this list to improve your use of Twitter and social media in your business.
We already use bit.ly, and have several more on this list that will bear investigating! You can follow LaunchX at http://twitter.com/LaunchX.
Starting a Business? Start Here. Go Far. LaunchX.com
This article about the insurance needs of pizza delivery companies came out this weekend in conjunction with the Superbowl, but the advice is good for any new business starting up. Don’t overlook your need for insurance. While the probablility of a loss may be small, your potential liability exposure could be large enough to sink not only your business, but also your personal finances, as well.
There are insurance companies that specialize in hard-to-insure industries (such as the pizza delivery mentioned in this article), and it is usually possible to purchase the insurance your business startup will need at a competitive price. An insurance agent or broker will be able to help you assess the risks that your company is exposed to, how likely those losses are to happen, and help you put together an insurance policy that will cover what needs to be covered in a cost-effective manner. So, as you are planning to start a business, don’t forget to consider your insurance needs!
Starting a Business? Don’t Know Where to Start? Start Here. Go Far. LaunchX.com
Like it or not, working is a fact of life for the majority of us. We are pretty much guaranteed to spend at least 40 years at a full-time job…longer if the retirement plan ends up tanking with the rest of the economy. But that doesn’t mean every day has to be a grind, waiting for the bossman to bless us with a puny raise or meaningless promotion. There is a way to take control of your worklife, and that is to go out on your own.
Working for yourself is by no means a vacation. In addition to being your own boss, you are also your own legal counsel, accountant, marketing department, warehouse attendant, and secretary. But everything you do in a day seems to have far more meaning. It is easier to be motivated, easier to put up with the mundane tasks when you know exactly why it must be done and how it will build your venture. There are a million and one things on your to-do list, but they are all yours.
The things you daydream about at the office are really only possible through self-employment. Want more time to spend on your favorite activities? With your own business, you can fit your 50+ hours per week in any way that works for you. We know an IT consultant who does his work late into the evening, freeing up the after-school time to spend with his kids. We know another small business partnership that have divided the workload so that each is completely free half the weekends each month to be involved in their hobbies.
Starting a business will not reduce your overall workload — but it will give you control over when and how much you work.
Starting a Business? Start Here. Go Far. LaunchX.com
The news reports are full of stories about occupancy rates being at record lows for commercial real estate. Many of these stories are told in depressing terms — and how bad it is for the local economy. But, if you are starting or expanding a business, you should be able to see the silver lining in these news reports. With occupancy rates down, rental rates are also down, so you should be able to pick up a good to great location for your business at a lower than expected cost. In a buyer’s market, you, the buyer have a lot of negotiating power. Do you need graduated rent (low the first year and increasing over the lease)? Do you need a larger tenant improvment allowance? Do you want extra parking spaces? A bigger share of the center’s common sign? Now is a great time to shop for your retail or other commercial space!
Starting a Business? Start Here. Go Far. LaunchX.com
A study recently released by the U.S. Small Business Administration’s Office of Advocacy found that small business owners, as a group, experienced substantial gains in real income and wealth from 1998 to 2007. Read the full study here. Only about 12% of US familes own at least one small business, a rate that has held fairly steady over the years. Are you ready to join the ranks of business owners?
Starting a Business? Start Here. Go Far. LaunchX.com
One of my favorite children’s books, A Wrinkle in Time, has a character called the “Happy Medium.” It is a play on the adage of needing to find a happy medium between two extremes. When starting a business, may entrepreneurs are at one extreme or the other when making business decisions.
Some are highly deliberative, research all possible options, get 45 prices before buying a case of printer paper, and delay a decision “in case” new information comes to light.
Some are lightning fast, accept the first offer, by full-price at the local store because its close to home, and jump to decisions without considering any options at all.
To have a successful business, you need to find a happy medium when it comes to decision-making. Get several bids in a reasonable time, then pick one. The time waiting for a better deal to come along is time you are not using the item or selling products. Do consider the most likely options and outcomes of a decision, but then make a decision and push forward. You may have to change direction later, but at least you have made progress in the meantime.
If you are usually a fast decision maker but find yourself dragging your heels, you may need to gather more information before you can make a decision. If you are usually deliberative, but find yourself jumping at a “must do it today” deal, watch out. There may be pitfalls you haven’t seen that slowing down a little will help yousee.
The bottom line — find a Happy Medium for your decision-making process and propel your business forward.
Starting a Business? Start Here. Go Far. LaunchX.com
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