Posted on: Wednesday, January 11, 2006
Advice for people launching venture
By Rhonda Abrams
Is your New Year's resolution to start your own business? If so, you're not alone. Each year, nearly 1.5 million Americans launch new businesses. This year can be the year you finally become an entrepreneur.
Of course, it's scary to make the big move to self-employment. I was nervous, too, when I launched my own business — and that was 20 years ago. I've had great times and not-so-great times in business. I've had times when I've run out of money and times when I've been rolling in cash. But I've never once missed having a boss.
If 2006 is the year you're finally going to do it, here are some strategies for beginning successfully:
Do a reality check. What will you give up if you leave your present job? Can you financially manage without a paycheck until you start making income in your own business? On the other hand, how secure are you — really — in your current job?
Explore your options. Don't fixate on the first business idea you have. There's a world of entrepreneurial options out there.
Choose a business with low start-up costs. Let's say you want to own your own restaurant. That's an expensive type of business to launch. Other food-related businesses require much less cash, such as catering, becoming a personal chef or preparing pre-cooked meals for home delivery.
Start in your spare time. You can launch many businesses without quitting your day job. Some types of work — especially consulting, crafts and many technology-related activities — can be started part time on weekends or evenings.
Line up customers before you quit. You'll feel more secure if you have at least a few clients before you officially open your doors. Market your products or services in your off hours to secure accounts before you leave your current employer.
Develop a business plan. One of the most important steps is creating a business plan before you start. The process gives you a chance to do your research, learn about your competition and target market, and devise strategies for success.
Find a niche. Look for a way to distinguish yourself from the competition by choosing a specialty, or niche. Let's say you want to start a bookkeeping service. You'll be competing against every other bookkeeper out there. But if you specialize in bookkeeping services for retail stores, for example, you've got a clear focus for your marketing efforts and a competitive edge when you approach prospective retail clients.
Get a job in the type of business you want to start. One of my favorite sayings is "learn on someone else's nickel." If you want to start a business in a field that's new to you, why not get paid while you learn the basics? Go to work in a restaurant before you launch your own if you've never worked in a restaurant before.
Take over business activities your current employer no longer wants. Big businesses need big customers and big revenue streams. Many large companies choose to stop serving smaller markets or drop entire business lines, opening up opportunities for you.
Be careful. Every day, I see infomercials touting get-rich-quick schemes. Once you tell others that you'd like to start your own business, you'll be pounced upon by acquaintances wanting to recruit you to join their multilevel marketing programs. Be very cautious. These tantalizing promises of financial independence usually end up costing you money.
Rhonda Abrams is the author of "The Owner's Manual for Small Business" and "Business Plan in A Day." Register for her free business planning newsletter at www.PlanningShop.com.
