ENTREPRENEURS
Is Entrepreneurship for you?
There is no way to eliminate the risks associated with starting a small business. However, you can improve your chances of success with good planning and evaluating your strengths and weaknesses as the owner and manager of a small business. Carefully consider each of the following questions:
- Are you a self-starter? It will be up to you - not someone else telling you to develop projects, organize your time and follow through on details.
- How well do you get along with different personalities? 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 cranky staff person in the best interest of your business?
- How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure, and independently.
- Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun and exciting. But it's also a lot of work. Can you face 12hour work days six or seven days a week?
- How well do you plan and organize? Research indicates that many business failures could have been avoided through better planning. Good organization of financials, inventory, schedules, production can help avoid many pitfalls.
- Is your drive strong enough to maintain your motivation? Running a business can wear you down. Some business owners feel burned out by having to carry all the responsibility on their shoulders. Strong motivation can make the business succeed and will help you survive slowdowns as well as periods of burnout.
- How will the business affect your family? The first few years of business startup can be hard on family life. The strain of an unsupportive spouse may be hard to balance against the demands of starting a business. 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.
Advantages of becoming an Entreprenuer:
It's true; there are a lot of reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.
- You get to be your own boss
- Hard work and long hours directly benefit you, rather than increasing profits for someone else
- Earning and growth potential are far less than limited
- A new venture is exciting
- Running a business will provide endless variety, challenge and opportunities to learn
Pre-Start Up Checklist
This checklist is an important tool in the planning of your new business. The entrepreneur must address each of these areas.
THE SITE
> Do you have a realtor?
> Have you decided on a location?
> Have you found a good building?
> Is it big enough to allow for growth?
> Can people get to it easily?
> Do you have adequate parking available?
> Do you have a proper sign?
> Have you signed the necessary papers?
> Has a lawyer checked the lease and zoning?
> Are the utilities in line?
EQUIPMENT AND OFFICE SUPPLIES
> Do you have the necessary office equipment?
> Do you have a reliable source?
> Can you afford to maintain proper levels of supplies and the upkeep of equipment?
YOUR MERCHANDISE
> Do you know precisely what will be sold?
> Are you qualified to sell it?
> Can you afford the suppliers' prices?
> Can the supplier provide the services you need?
> Do you know how to "merchandise" your goods?
RECORDKEEPING
> Have you planned a system of records for income, expenses, etc.?
> Have you worked out an effective inventory tracking system?
> Do you know how to keep payroll, tax, and payment records?
> Do you know what financial statements will be needed?
> Do you have an accountant, if one is needed?
LEGAL RECORDS
> Do you have all the necessary licenses and permits?
> Do you know what business laws you have to obey?
> Do you have a lawyer with small business expertise?
PROTECTION
> Have you made plans for protecting against both employee and customer theft?
> Have you talked with an insurance agent about all the kinds of insurance you need?
ADVERTISING
> Do you have a marketing plan?
> Do you know how you will advertise?
> Can you afford adequate advertising?
PRICING
> Do you know the selling price for each item?
> Do you know your competitor's price?
> Can you make a profit with the prices at which you intend to sell?
> Do you have a pricing strategy for old merchandise or slow to sell merchandise?
BUYING
> Do you have a plan for determining what your customers want?
> Is it both workable and affordable?
> Do you have buying experience?
> Do you have reliable suppliers?
SELLING
> Do you have a selling strategy?
> Can you afford the necessary staffing?
> Do you have a plan flexible enough to cover both the slow and peak times?
> Are you and your employees experienced in selling?
EMPLOYEES
> Have you hired the necessary staff?
> Do they have the needed experience?
> Have you set personnel policies?
> Do you have a benefits package?
> Do you have a performance appraisal system?
> Do you have a training program and procedure manuals for new employees?
> Do you have an employee recruitment plan?
> Can you offer employees insurance coverage?
> Do you know what the total salaries and benefits will equal?
> Can you afford this figure?
CREDIT
> Will your customers have the option of buying on credit?
> Have you arranged for the use of credit cards?
> Do you have a method of determining good creditors from the risky ones?
> Have you set credit acceptance procedures for the staff to follow?
OTHERS
> Could you make more money working for someone else?
> Can you afford the loss if the business fails?
> Do you have a plan to repay debts?
> Does your family support you completely?
> Do you have the energy and time to run a business?
> Do you have adequate funding?
> Will you need to mortgage your home or use it as collateral?
By following this checklist, the business owner can deal with many of the problems that face a new venture before they become major obstacles.