Archive for the ‘Thinking About Entrepreneurship?’ Category:
The economic debacle we are currently in recently broke another record – the highest unemployment rate in over 25 years. Many working people are experiencing their first devastation of not being able to find a job. Recovery is likely to be slow, regardless of the overly optimistic propaganda that is supposed to make us willing to spend money we don’t have. The country will recover, but not at the hands of the many-tentacled Big Businesses that put us here. Recovery will happen on the backs of small business creating a few to a few dozen jobs at a time. If you have ever had the urge to start and build a company, now is as good of a time as any to get on board.
Starting a business now does have its challenges, but none that are all that different from starting a business at any other time. In fact, there are enough advantages to going out on your own right now that anyone willing to put in the time and effort should seriously consider taking the leap. Not only are there good deals to be found through suppliers and other vendors, but the talent pool is enormous! Whatever skills your business will require, odds are there are plenty of employees available and many are more than willing to join a startup with better than even odds of growth and success. Starting up a business now means you will be forced to watch your pennies from the beginning, which means you will be well prepared to maximize profit once the economy improves. Worried about risk? Turns out the biggest risk of the last decade was counting on your job to stay around. Keep in mind that while thousands of Americans are losing their livelihood each month, most business owners are still getting a paycheck. Startup risk can be very well controlled through good planning and solid business management.
Entrepreneurs drive innovation, they drive change, and they will drive the recovery of the present economic mess. If you are thinking about starting a business but don’t know where to start, check out the LaunchX System. We designed the step-by-step program and the tools that come with it to help entrepreneurs reduce risk and increase their chances of great success. Entrepreneurship isn’t easy, but it is the best way to pull the country up by the bootstraps. Join in, start up.
Start here. Go far. LaunchX.com
Starting a business means very different things to different people. Some are looking to start a microbusiness to replace a job they don’t like while others are looking to become captains of industry. Some want to earn just enough to sustain their current lifestyle, while others are looking to land on the Forbes 400 Richest Americans. Deciding whether you want to own your job or own a company is a critical first step on the road to entrepreneurship.
Starting a microbusiness has become a popular option over the last decade. As professionals jump off the corporate ladder in exchange for the flexibility of consulting gigs and stay-at-home spouses look for ways to bring in a little extra cash, self-employment will continue to increase. Most microbusiness entrepreneurs have no interest in managing employees. For many, the whole point of going out on their own is the independence of working alone. These entrepreneurs are also not generally concerned about significant growth of their business idea. Many have other priorities that they would rather spend their time on. Starting a microbusiness is a very viable alternative for anyone who is looking for the security of being responsible for their own work life while having the flexibility to schedule their time as they see fit. Replacing your job or supplementing your income is a far easier startup than planning a company for growth, but it is still important to cover all of the fundamentals in developing your startup idea. Planning, marketing, and financial management are still the keys to success, but an even stronger emphasis on time and task-management is in order. The cost of microbusiness startups tend to be much lower, though it is important to ensure you have enough working capital to cover the time it takes to build a customer base.
Starting a company is another story. If you are planning to grow your business idea into a competitor in the greater marketplace, the tools you need to succeed must cover far more ground than those needed for a microbusiness. Of course, planning, marketing and financial management are the keys to success, but the detail with which you approach each area is much deeper. Rather than being limited by what one person can do, you are limited only by your ability to plan ahead, continually increase sales, and balance the finances for growth. Building a company takes patience and perseverance, but has the added benefit of employees who can help you along the way. Launching a company is not for the faint of heart – the risk and stress may be higher, but the payoff is far greater as well.
Whether you are looking to launch a company or own your job, it is necessary to do things right from the start in order to succeed. The paths to success for each option are slightly different, however, and it is important for any would-be entrepreneur to clearly define their goals prior to startup. Consider what you are really looking for in taking the leap into self-employment and modify your business idea accordingly. Entrepreneurs create very satisfying work lives following either path. The trick is to choose the one that is best for you!
Start here. Go far. LaunchX.com
A recent news article out of Lubbock, Texas profiles a woman who owns and operates (with her husband) the Glazed Honey Ham Co (read the article). This small but thriving business has been in operation for 20 years, but there are a few interesting points to note for anyone looking to build a business with long-term potential.
First, the article itself was written to announce the business’s appearance on a national Food Network TV episode. The newspaper article and TV episode…all free marketing! But the odds are that the multiple volunteer positions the owners hold and their involvement in the local community allowed them to develop the relationships to get this level of exposure. It is not enough to just run your business if you want to be wildly successful. Get involved. Find issues that interest you and get on the non-profit boards. Use your power as an entrepreneur for good, and that goodwill will come back to you in spades.
Note that one of the few direct quotes from the business owner is a direct plug for the sandwich portion of the business. This interview was conducted by the local media, most likely in response to a press release put out by the Ham people. The owner took that opportunity to set a clear objective – increase local traffic for the lunch service – and likely succeeded in doing so. In addition, the business’s ability to ship ham and turkeys throughout the country is clear. In one article, this owner was able to target each of the company’s major income streams. When you have an opportunity to talk with the media, be prepared with your objective – the clear message you want to be sure reaches your market.
The final kernel to take away from this article is that perhaps the “doing what you love” advice that is so prevalent in startup how-to articles is not the absolute necessity some would have you think. It is hard to believe that this couple just loved ham so much that they couldn’t resist working with it every day for 20+ years. More likely, they saw a need in the market, planned a viable business around it, and used their experiences as accountants for other businesses to build a venture that would sustain them throughout the rest of their professional career. The owner is quoted, “We loved the idea because it was a business where people were doing something they wanted to do – they were having a party, or they were having family.” No mention of loving ham there.
The odds are that these entrepreneurs could have been equally as successful with a flower shop, a catering company, or running a bowling alley. Doing what you love is a broad notion. While you shouldn’t choose an industry or business type that you can’t stand, you also should not limit yourself to the things you do as hobbies. Serving customers who are “…doing something they wanted to do…” is actually a pretty good place to start in looking for the right business idea. More importantly, first-time entrepreneurs need to build their fundamental business skills. The business of startups is business…no matter what the day-to-day operations turn out to be.
Start here. Go far.
LaunchX.com
A recent issue of ESPN Magazine included a short section on the inspirational messages pro football teams use to motivate their championship teams. Becoming an elite entrepreneur requires a similar dedication and commitment as becoming an elite athlete, thus the one-liners that inspire the toughest athletes should also inspire those working to succeed in business.
The New York Giants’ rather banal “No Toughness, No Championship” is fairly literal as far as football goes, but can relate to the struggles of startups as well. Every new venture hits stumbling blocks and experiences delays, lean times, and close calls. Without the perseverance to limp through these tough times, entrepreneurs would never get their ideas off the ground. Most startup ideas change and morph through the planning process, and successful entrepreneurs also have to be tough enough to let go of their original concepts in exchange for more viable options. In addition, startups take a lot out of you, both physically and mentally. No matter what your previous experience, there is a lot to learn about running your own business, and the time you will end up putting in to driving success will at times be overwhelming. Toughness is critical.
The Baltimore Ravens quote, “Take care of family, team, self” is also relevant to first-time entrepreneurs. It is very easy to pour yourself into the startup effort, leaving no time for your personal life. We know one entrepreneur who essentially survived on Dr. Pepper, cigarettes, and 4 hour naps during the first year of his startup…which fortunately turned out to be very successful. Unfortunately, he missed a full year of the rest of his life. There is really no good reason to launch a business this way. At some point, your productivity dwindles to nothing if you don’t take the time to take care of your other responsibilities. Schedule your time to include all aspects of your life that are a priority. Take care of yourself – get enough sleep, eat healthy. The stress of a startup puts enough burden on your immune system, no need to wreck your health on the road to independence.
The San Diego Chargers slogan is long but great for entrepreneurs. “Don’t be afraid to work hard enough to find out how good you can really be.” Once you have decided to take control of your work and financial future, why settle for anything less than all you can do? Don’t limit yourself unnecessarily, and don’t let fear of anything, especially failure, keep you from reaching as far as you can go.
The Philadelphia Eagles mantra is the best, and might have to be swiped for the LaunchX System…”The will to win is nothing without the will to prepare. ‘Nuff said.
Start here. Go far. LaunchX.com
A news release today announced that an estimated 1.5 million still-unemployed Americans will run out of their unemployment benefits by the end of the year. That’s 1.5 million families who have gone from a steady paycheck to no income at all over 2009. The news article goes on to say that there are currently five people seeking employment for every one job opening available. Not good odds. At this point, anyone with a useful skill set and a willingness to work should be considering starting their own business.
If these recessions teach us anything, it should be that working for others is no guarantee of security. While it’s true that some small businesses are closing as well, most of those failures can be traced back to the owners’ failure to properly manage the business in the first place. The downside of starting a business in a strong economy is that there is less pressure to keep an eye on the details. Starting now, when very little capital is available and sales are tight, business owners are forced to really look at where the money comes in and where it goes out. Most small businesses are NOT failing during this recession – those business owners were prepared to respond to the changing market. Yes, they may have had to lay off workers, but those owners still have a job.
If you are thinking about starting a business, now is as good of a time as any, perhaps even better. Don’t let an irrational fear stop you – for many workers, this recession has forced them to face all their fears at once. Owning your own business at least gives you the power and responsibility for your own success or failure. If you decide to go out on your own, also decide to do it the right way. Take control of your work life and financial future…start your own business.
Start here. Go far. LaunchX.com
A recent article about Tyler Perry (House of Payne, Medea) sums up a fundamental concept that all successful entrepreneurs believe – the key to building wealth is ownership. Though the purpose of the article is primarily biographical with some race issues thrown in, the most important point for potential business owners is that Mr. Perry encompasses the critical traits of successful entrepreneurs. He knew what he wanted to do and took control of his own professional life. Yes, he faced some failures and rough patches, but he persevered. He refused to take no for an answer, and when he couldn’t find traditional backing for his ideas, he looked for ways to get it done on his own. Read the full article on CNN here.
A second interesting article about successful entrepreneurs is the story of the Roberts brothers in St. Louis. Another rags to riches tale, these two guys also never quit. They put in the time and sweat equity…and didn’t let the fact that they had no money stop them from finding entrepreneurial success. The Roberts brothers now have a net worth of over 1 billion – anyone thinking about taking control of their future should be inspired by their story. You can read the full article on CNN here.
Most Americans have dreams of building personal wealth, and these two stories verify what many of us already know – the only way to get rich is to take control of your work life. The only required tools are the determination to stick with your goals, the willingness to do whatever needs to be done to get there, and the ability to brush yourself off after setbacks or failures. Having a lot of cash on hand to start a business is nice, but is not necessary. If you are serious about asserting your independence, you can find a way to get there. Like Mr. Perry and the Roberts brothers, you can learn what you need to know and find a way to get the job done. Stay focused and quash your fear of failure…maybe you’ll be the inspiration for new entrepreneurs one day.
Start here. Go far. LaunchX.com.
A recent survey reveals that over half of working Americans plan to change jobs once the economy recovers. Though some of these folks are likely underemployed right now, the bulk of them are more likely to be ready to do something different. Recessions have a way of changing priorities and encouraging people to chase their dreams, perhaps because of the realization that the “security” of following the middle path is an illusion. Working to climb the corporate ladder no longer ensures that you will receive your annual raises and bonuses, that you will be promoted, or even that you will keep your job. Right now, at least one in ten of your peers are unemployed and far more are underemployed (working at jobs beneath their skill level or experience).
Another recent study, this one by the Center for Economic and Policy Research in Washington, shows that the US is lagging far behind our western industrialized counterparts in terms of self-employment rates. While the UK population reflects over a 13% SE rate, and Greece comes in at a whopping 36%, our self-employed individuals make up only 7.2% of the working population. That means that 92.8% of us spend our working hours making money for someone else, with little guaranteed in return except for a paycheck, and then only for as long as they keep us around. The low self-employment rate is particularly striking given the principles of self-reliance and independence at the heart of the American dream.
Taken together, these two studies make an important point – more Americans need to take control of their working lives. The best way to do so is to join the ranks of entrepreneurship. Yes, it can be a difficult road to get your idea off the ground, but in the long run being your own boss is the best way to go. More small businesses and less reliance on mega-corporations is good for the economy and good for individuals. Taking control of your work life inherently gives you more control over your financial position, how you spend your time, and the impact you make on the world around you. Most people have at least one or two good business ideas…it’s time to turn those ideas into thriving companies of your own.
Start here. Go far. LaunchX.com.
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