Before you jump into starting your own business, ask yourself these four questions:
o Is it really a better personal career choice?
o What do I need to know to decide?
o How can I prepare?
o How do I start?
In this article, I’ll help you find answers to those key questions by drawing on my own experience as a corporate manager and entrepreneur, plus what I’ve learned from over 15 years of consulting owner-managers.
Do you really want to own your own business? The pros are attractive, but don’t forget the cons that are an unavoidable part of the choice.
Advantage
o Unlimited opportunity
o Freedom, independence
o Continuous challenge, variety
o Your choice of management style
o Responsible and involved in the whole business
o If business is doing well, you are doing well
Disadvantages
o There are still limits to what you can do or control.
o Many people now depend on you
o Requires skills and knowledge that you probably don’t have
o Financial future of higher risk and less safe
o I can’t leave it at the office
The next step is to evaluate if you are the entrepreneurial type:
o Personal preferences and expectations: lifestyle, work environment, rewards, method of compensation?
o Personal strengths and weaknesses?
o Education, training, network of contacts?
o Characteristics of an entrepreneur?
o Independent, confident, persistent, action oriented, risk taker. Passionate, leader, achiever, communicator.
o A solid foundation: family, physical, financial health?
o Additional resources available: partners, suppliers, key customers, employees?
If you are still determined to continue, consider which business option best suits your business ambitions:
o Home business, multi-level marketing
o Independent contractor – commercial or professional
o Sales agent: insurance, real estate, financial services
o Franchisee: retail, fast food, commercial services
o Independent business – local, national, global
o Retail, hospitality, food services, consumer services
o Manufacturer, distributor, service companies
o Internet business or technology
o Entrepreneurial role in a corporate environment
Once those decisions are made, the next question is: What is my business opportunity?
Your selection will be based on your knowledge, experience and personal contacts:
o Opportunities that match my abilities?
o Need of the market?
o Current solutions available?
o What is my proposed solution?
o Confirmed by market test, customer feedback?
o How do I make it profitable?
You are now ready to document a business plan.
Why do I need a business plan?
o Develop and document your business concept, strategies, action plans and projected financial results as a guide for management.
o Provide the necessary information for possible sources of financing.
o Attract new investors, strategic partners or key employees.
When do I need a business plan?
o Start-up of new businesses
o Launch a new product / service
o Enter a new market
o Strategic review and performance diagnosis of an existing business.
o Prepare a business for sale, merger, acquisition or succession.
Business planning process and checklist:
o Evaluate personal goals
o Identify the business opportunity
o Define your concept and business model
o Conduct sufficient market research
o Develop the Strategic Plan
o Define operational plans
o Prepare financial projections.
Business plan: recommended index
1. Executive Summary
2. Concept and business opportunity
3. Mission, Vision, Values
4. Market analysis
5. Competition
6. Strategic plan
7. Management team and organization plan
8. Offer of products and services
9. Marketing and sales plan
10. Operations plan
11. Risk analysis
12. Financial plan
13. Appendices
With all that preparation and analysis completed, you are ready to consider financing your Business Plan. There are many alternatives available, but you will likely use these funding sources as you move forward with your plan:
o Personal investment, cold box
o “Sweat equity”: time and effort, unpaid
o “I love money”: willing friends and family
o Bank financing – term loans, line of credit
o Angel investors: passive, active and aggregate securities
o Government funding, special loans, grants
o Venture capital – private capital
o IPO – Initial public offering
Is Entrepreneurship the Right Career Choice for You? These questions and approaches should help you decide and develop a plan to be successful. Good luck! That helps too.
From the chatterson
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