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Owning a home used to be the American Dream. However, this
long-standing goal that so many aspired to, and ultimately
reached, has been replaced with a new goal -- becoming a
business owner.
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At first glance it sounds perfect: Leave the corporate world
behind and become an entrepreneur. No more commuting, office
politics, difficult co-workers and demanding supervisors. You'll
be your own boss and reap all the financial rewards. It will be
a brand-new lifestyle with incredible opportunities and much
less stress.
Others have achieved the new American Dream. Look at the
young kids who started Apple on a shoestring in the late 1970s.
Don't forget the two engineers who launched a little company
called Hewlett Packard out of a small backyard garage. Mrs.
Fields took a cookie recipe -- of all things -- and built it
into a national model that is taught in many business schools.
Why not you? Yes, you could have the next great business
idea, but that alone might not be enough. Ask yourself, do you
have the right stuff to launch and run a successful business?
Here are five questions to consider before making the big leap
from a steady paycheck to business owner.
1. Are you a self-starter?
With no one looking over your shoulder, it s easy to
procrastinate. You must have the discipline that is needed to
plan, set goals and stay focused.
Since many small businesses initially start out as home-based
to keep overhead low, working from home brings additional
distractions. Can you resist the temptation to eat cookies and
watch reruns of Law and Order when you should be making
marketing calls?
2. What are your expectations?
If your goal is to work fewer hours and feel less stress, then
think again.
The U.S. Small Business Administration estimates that
business ownership requires a tremendous commitment, with
12-hour workdays, often seven days a week. Needless to say, this
can be a strain on family life. If you think it might be too
much, then consider a job change instead or a new career with an
established company rather than launching your own business.
3. What are your financial goals?
In the short-term your income will probably be lower, and it
could stay this way for a long time. Additionally, no one pays
for vacations, health care plan, profit sharing or stock
options. You must set up your own retirement plan as well.
The U.S. Small Business Administration offers some sobering
statistics. It reports that half of the small businesses started
will fail within the first year. Furthermore, by the fifth year
95 percent will have ceased operations. While the reasons for
failure vary, one of the most common is a lack of adequate
financing. To beat the odds, meet with an independent accountant
to honestly discuss your finances and expectations. The good
news is that if your business takes off you will reap the
financial benefits.
4. Are you a water-cooler person at
heart?
When you become a business owner, your days of taking a long
lunch or chatting with the guys around the water cooler are
over. Can you make the transition from worker bee to boss? It
can be lonely.
On your own, you ll be making countless decisions every day
-- from the mundane to the critical. And, you alone must
shoulder the daily ups and downs that come with running a
business. However, it can also have tremendous rewards in that
you are building something from scratch. So, if you believe you
can weather the isolation and roll with the punches, you might
be a good candidate for owning your own business.
5. Can you create an organized
environment?
Where you work is certainly important. You'll need an acceptable
work space and the right office tools in order to be creative
and successful. Even more important, however, is how you work.
For example, you can have an incredible sales presentation
with the latest technology that will wow clients, but if you re
constantly late for meetings and lose important documents,
you'll probably also lose business. Ask yourself if you can
flourish in an environment where creativity and operational
systems are equally important? Many entrepreneurs make the
mistake of thinking the company will simply run itself if they
just come up with great ideas and business leads. They pay scant
attention to the details of building a business. Too often this
is a recipe for failure.
To be a success, you must combine your fantastic ideas and
business tools with solid planning and organization.
Success for any new business is never guaranteed. There are
too many variables, and many factors will be totally out of your
control. But you can avoid making a costly mistake by asking
yourself, honestly -- before you take the plunge: Do I have what
it takes to run a business? The answer should tell you if the
new American Dream is the right fit for you.
About the Author:
Nancy Wurtzel is the founder and owner of All About Baby, an
ecommerce site located at http://www.allbaby.com. All About Baby
specializes in personalized and memorable gifts for children
plus helpful child-related content. to enter the marketplace or
grow their existing ecommerce business.
July 28, 2004
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