Your First Steps to Becoming a Business Owner
“While recent job losses are widespread, small businesses’ historical overall rate of net job creation makes them a key player in solving our labor market woes. And the number of newly self-employed, whether by choice or not, still offer glimmers of hope.” SBA, July 2009
So you want – or need – to start your own business. Where do you begin?
Maybe you already know what kind of business you want. Maybe you have no idea. Either way, here are some ways to identify your best options.
Spend time identifying your goals, skills and resources – lots of time. This is your future, after all.
The first thing to do is sit down and realistically evaluate the financial aspects. In this economy, that comes first.
- How much money do you want to make?
- How long can you wait to get to that point?
- How little can you actually get by on until then?
- How much cash do you have (or can beg or borrow) to launch your business?
- Are you willing to take out a loan if you need to? (the new stimulus package just bumped up the number of “micro-loans” available for small businesses!)
Explore your options
Make a list of anything you can think of that you would like to do or can do – doesn’t matter how crazy it sounds, just jot it down.
Next, explore different businesses and industries that fit the list you have just made. You’re looking to fill a niche, so you need to identify that niche and see if anyone else is already working it. You don’t have to be the first or the only one, but you need to fill a void somehow. Find what you can do better, faster, cheaper - whatever would benefit the consumer and set you apart from the competition. To do that, you need to spend a lot of time learning what’s out there already.
Remember, you might not be able to jump in full time right away; you may have to do a combination of things to make ends meet – especially while you build your core business. Part of your research might be to find a temporary or part-time job to help fund your new business.
- Search the internet for related businesses and services. You’ll find things you never imagined. Maybe one could be your next business.
- If you like the security of an established system, think about franchise opportunities and other existing businesses for sale. A business broker or franchise broker can help you explore what’s available in your area.
- Maybe you don’t need to reinvent the wheel. There might be a job out there already if you just stretch your net a bit further. Again, use the internet and search, search, search. Enter every keyword and phrase you can think of that might lead you to an idea – or a job.
Be open to possibilities! Based on your research and your finances, revise your list of everything you think you might like to do or be able to do. Make a list of all the possibilities and write the pros and cons for each one. This way, you can whittle down which ideas make sense for you. Be brutally honest about your strengths and weaknesses as you do this.
Make this the best decision you ever made – make the right choice and get the right advice.
Now look at your list again. Which options are not only possible and affordable but actually excite you? Choose something you are passionate about. Running a business is hard work. Successful business owners will tell you the key to success is loving what you do.
But energy and enthusiasm, plus a great idea, are just the beginning. Now enlist the aid of professionals who can help you make smart decisions that will take you to the next level. There are many resources available for business start-ups, but there is no substitute for one-on-one professional advice. A good business consultant can save you time and money while helping you find the right path for your new business. Take the time to find an experienced advisor to help you as you begin your new life as a business owner. That just might be the most important step of all.
In Metro Detroit, Paul Bensman, President of Details In Retail offers business consulting and coaching to guide you every step of the way.
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