The article is about 3 things that you should consider when you build or purchase a business. Starting a business is an incredible undertaking with the odds stacked against you. Read on for a few tips that will put the odds a little more in your favor.
When starting a business, you need to look at how the business is structured and also its place in history. Here are 3 tips that you can use to analyze whether your business has the highest chance for success:
1. Is the business fairly timeless? Are you following a fad, like selling Beanie Babies, or is this a business that will keep customers coming back no matter who is on the television. This is very important to consider, since you can get wrapped up in something that may make you a ton of money in the short term, but will dry up as soon as the fad wears off.
2. Can you expand the business? Any business that you start should have the opportunity to grow, hopefully somewhat infinitely. Do not go into a business venture that has a built in wall. If you are the business, for example, there is only so much work you can personally do without adding help. If there are a finite amount of customers that will eventually run out, or even a finite amount of resources available for growing the company; these are all reasons to shy away from a business.
3. As an entrepreneur, does the business offer you room to act creatively? Can you use your skills to grow the business, or is the business an old, immobile beast that is entirely resistant to change? Industries that are resistant to change eventually die off. If you are going into a business in an industry that has old thinking and refuses to budge, you may want to run the other way. Even if you are buying a business full of employees that aren’t willing to budge with new ideas, you may want to skip it.
With any business endeavor, also make sure you are having fun. You will spend way too many hours of your life starting your company and getting it off the ground to waste that time on something you don’t enjoy.…
For new entrepreneurs, sometimes it can be difficult to decide what you want to charge for your services, and understand how to bring together your dreams and desires while still making the math work; you have the dream, but where does that break down into cold, hard cash? Here are 5 pitfalls that I see happen time and again with new entrepreneurs:
They don’t begin with the end in mind. New entrepreneurs are often so worried about making a living that they don’t consider being selective with their hours or clients. The set an hourly rate that forces them to reach their income goal through volumes of meetings and work! This is a perfect way to wear yourself out and begin to feel like you’re just punching a clock again.
They only use their gut to decide what they should be charging. Checking in with your internal body compass is a great way to assess if you’re on the right track, however, so many people tell themselves “stories” about their money that sometimes this isn’t the most effective method-most new entrepreneurs get a knot in their stomach just from thinking about charging someone, so you have to get past that story before you can objectively look at pricing.
They are starting part-time and defer the decision. Some new entrepreneurs tell themselves, “I’m transitioning from my existing job and doing this on the side, so I don’t need to start charging what I WANT to charge immediately.” This just defers the inevitable AND causes you to work at the job you want to leave for that much longer!
They don’t use the right math to figure out how to maintain their existing lifestyle. Most new entrepreneurs use their salary from their last job to determine what they need to maintain their life, but being an employee and being a self-employed business owner are so different financially that new entrepreneurs lose time and money because of miscalculated assumptions.
They under value the experience they have. Many new entrepreneurs are paralyzed by the thought that part of their rate is a reflection of experience and mistakenly think “small” when setting their rate. What new entrepreneurs need to realize is experience is subjective, and the actual game changer is the level of confidence they have in their direction! Each one of us was put here to offer something unique to others.
One of the reasons a person decides to become self employed is improving their bottom line, yet sometimes the thinking that caused them to originally be frustrated with their finances will also bring those same issues into their new business.
When new entrepreneurs only look at what they are comfortable charging, and they don’t figure out what they should be charging, there’s bound to be setbacks. Avoiding these pitfalls will ensure that the new entrepreneur does not waste time or money when launching their new venture!…
I love entrepreneurs! Generally, I’ve noticed a drive and a determination that takes creative-minded, bootstrapping, do-it-yourselfers a long way. Those who show true ingenuity, persistence, and resilience inspire us all to have a brighter attitude.
I also love entrepreneurs because they ask me to help them with things like logo and graphic design, social media strategy, and web-based user experience. Oh, and I charge for those things, so it’s doubly-nice.
One thing I’ve noticed, however, about super-entrepreneurs is that their minds tend to race about 10,000 RPMs with cool, new ideas. I really wonder how many ideas are eventually left laying in the dust, not because they weren’t good ideas, but because not quite enough thought and planning went into them.
Having received tons of emails with ideas from entrepreneurs hoping to take an idea big-time, I thought I’d throw together this list of the six things I either say, or want to say in response. They are mostly questions, not recommendations, but the questions themselves are often overlooked.
Is it possible?
I know this one sounds obvious. If it weren’t would I be asking about the idea to begin with? And aren’t all things possible to those who believe? Certainly, but quite a few great ideas are laying in graves because the technology was either not ready, or too expensive.
Who else is doing it?
Use search engines and social networks to scout out the potential competition. Sometimes you wind up jumping into an arena filled with insurmountable competition. You’re probably not going to start the business that will topple an Amazon or Apple.
Can it be done well remarkably?
Doing something well doesn’t make it successful. Doing it well enough to get noticed does. Can you execute the idea in such a way that people will buy into it?
Do I have accesses to the resources to get it done?
This thought may sound strange, but some ideas are good (or noble) enough that you should consider handing it off to someone who can get it done. And every good entrepreneur knows that “resources” aren’t limited to the money in your pocket. It includes the money in other people’s pockets as well!
Is the idea something I’m passionate enough about to stick with over the long haul?
Pretty self-explanatory. Most of us have been there, burying an idea for which we had great enthusiasm, but didn’t see the gap between enthusiasm and real passion.
Can it be monetized?
This is the slimy question nobody thinks anyone should ask, but it must be faced. Why? Because if it can’t be monetized, it can’t be sustained or expanded. Sometimes that’s okay. Sometimes a good idea needs to piggy-back some other more profitable concept. Sometimes, the idea needs to go back into the incubator though.
These questions are seeds. You may have more to face. But at least face these and use them as a filter for every new idea. Let your genius lie asoak in the probing process. If an …
In all likelihood, the dramatic recession of 2008 and 2009 will continue into 2010, and no amount of government intervention is going to provide a cure. Instead, Americans will use their own independent spirit to dig us out of this economic mess through innovation and entrepreneurship. More and more of us are recognizing the iffy status of corporate employment and seeking ways to take ownership of our work life and future. Entrepreneurship is the best path to recovery, whether the startups are independent contractors or fast growing gazelles, or any size in between.
Historically, startups that are considered gazelles account for most of the growth in private sector employment and revenue in the US economy. These companies can be launched in just about any industry but are most commonly found in whatever field is the hottest at the time. In the 1990s, most gazelle firms were high-tech companies on the dotcom highway. Now, the most recent gazelle-like startups are in the petroleum industry. Still, these high impact firms can be developed from just about any viable business idea. The primary factor that sets the gazelles apart from the rest of the startup field is their overall efficiency – they generate for more revenue per employee than either traditional ventures or most other startups.
The average staff size of gazelle companies is around 50, and gazelle firms generally grow to that point very quickly relative to other startups. They typically are responsible for more than 85% of all job growth, though they represent only 2% of all businesses. They tend to be industry innovators that identify and exploit unique market opportunities. They move and change quickly and place significant focus on applying entrepreneurial fundamentals and creative thinking to streamline and revolutionize the way things are done in business.
Of course, not all startups can be gazelles – in fact 98% are not. But smaller startups make significant contributions as well, and the outcome of this recession is likely to see that impact be even greater. Small businesses employ millions, and every startup that begins with the intention for growth will build that security for a few to a few dozen workers. And, most economic development councils provide second-stage loans and grants to help existing businesses grow. Savvy entrepreneurs develop new markets (often international) and drive innovation through better processes of producing and delivering goods and services. In addition, small business owners tend to wield significant political and social power in their communities. Thus, those who join the ranks of entrepreneurship can and do influence the culture and social standards within their communities.
Many long-time cubicle workers will take this opportunity to strike out on their own as independent contractors as well. While these workers are not technically entrepreneurs, they still will be taking control of their work lives and creating a larger class of people willing and able to influence legislation and standards regarding the self-employed. Qualified independent contractors also provide a strong support base for the larger startups – bootstrapping …
It takes a lot of courage to quit your job and run up your credit cards just to start a business. Some people would even say it’s downright risky. This is all before you even know if the business will be successful or not.
It’s normal to be risk averse. It usually means venturing out of your comfort zone. Most people like staying their comfort zone. Entrepreneurs can’t stay there. They have to take some risks.
A person’s risk-taking potential is influenced by several factors, including their environment, genetics, and their past experiences. What gives one person a thrill might make another run for cover. Some adrenaline junkies out there are hard-wired to take risks. You see them climbing up the sides of tall buildings or jumping out of airplanes. Most people will take small risks if they know there is going to be a good payoff on their investment at the end.
We all have an enzyme in our brains called monoamine oxidase (MAO). This is what keeps our impulses in check. People who have a shortage of it are more likely to be risk takers.
So, to answer the question about whether entrepreneurs are risk takers… it depends. Are you someone who always chases after the “get rich quick” schemes? Are you the kind of person who takes calculated risks to make your business better? If you don’t take some risks, you’ll never know your true potential. In that sense, all entrepreneurs are risk-takers. It just depends on the degree.
You can’t be stuck in neutral for fear of making the wrong decision. You might miss the best opportunity out there.
Entrepreneurs have to make decisions every day. Make the right decision and you could become very wealthy. Make the wrong one and you could become bankrupt. It’s enough to stress out the calmest of us. It’s always going to have some uncertainty associated with it. If we could predict the future we would all be rich.
A good entrepreneur will learn from the bad decisions and correct them quickly. They will also be less likely to repeat the bad decisions. And they will learn to trust their gut to figure out the right path.
Copyright (c) 2010 Julie Austin…