Entrepreneur Articles
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Are You Ready To Launch Your Own Business
Most people think at some point in their lives that they could launch their own business. While this may be true, there is a big difference between just launching a business and launching a business that has a good chance of being successful. How do you know if you are ready to start your own business? Here's a checklist to help you decide.
Personal checklist
Do you have a burning desire to start the business?
Are you willing to push through adversity and discouragement?
Are you confident in yourself and your skills?
Are you realistic about yourself and your skills?
Do you have a support network of friends, family and others who will provide encouragement along the way?
Do you have the motivation to do what it takes to succeed?
Do you have a realistic idea of what it takes to succeed?
Are you willing to devote long hours to your business?
Are you willing to be the primary decision maker and take sole responsibility for the business?
Do you have any experience in your proposed business field or industry?
Do you have a detailed business plan?
Do you have a vision for your business?
Are you ready to market and promote your business?
Can you manage the many relationships (customers, vendors, suppliers, etc.) required to run a business?
Have you thoroughly evaluated your business idea, including weighing the risks of moving forward?
Do you have the financial and emotional resources to get through the first 18 to 24 months of your business?
Are you willing to put the wants and needs of your customers ahead of your own wants and needs?
Are you willing to take risks?
Are you competitive enough to persevere?
What will you do if you fail?
Some tests, quizzes or checklists will give you a score based on your answers to the questions, then use the score to indicate how ready you are to go into business for yourself. This checklist, though, does not have a specific method of scoring or a minimum score to indicate that you are strong entrepreneur material.
Instead, this checklist is designed to provoke thought and clear, objective self-examination of your motivation and preparedness for starting your own business. Think carefully about each question, and answer it with complete honesty. Once you have completed the list, look back at your answers and use them to help guide your decision making process.
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Being A Realist Doesn't Have To Be Boring
What drives most successful entrepreneurs is their drive, passion and motivation to achieve a dream. This all sounds very romantic, of course, but successful entrepreneurs are also realists. They know that success takes time, effort, planning, and a willingness to do what they HAVE to do in order to reach a point where they can do what they WANT to do. Sound boring? It can be, but it doesn't have to be. It's really up to you.
Go ahead and dream
The dream is what drives a successful entrepreneur, so by all means, go ahead and dream. Dream big, dream of what motivates you, and dream of what has meaning for you. Write it all down, every detail you can conceive and every part of the overall picture that comes to your mind.
Now take your dream and apply a bit of realism to it. Not so much that you extinguish it altogether, but enough so that you can take an objective look at what it takes to achieve it without losing your passion for it. This is a very fine line for most people, depending on your level of skill, self-confidence, encouragement from friends and family, and a multitude of other factors that influence the ability to reach for a dream without doing so in a silly or senseless way.
Define success
One of the key steps is to define success in your own mind. In other words, you want to be a successful entrepreneur, but what exactly is success for you? Do you define it in terms of money, personal fulfillment, contribution to society, number of employees, or something else?
Think also in terms of defining success for each step along the way. The most successful entrepreneurs know that each stage will present unique challenges and issues, so they define what they consider a successful outcome for each step. This allows them to be realistic about their activities while still gaining a sense of achievement that keeps them passionate and motivated about the larger overall dream.
Full time dream or part time dream?
It sounds dramatic to drop everything and dive headfirst into a dream, but the practical impact of doing so can be devastating to most people. There are still bills to pay, responsibilities to shoulder, commitments to fulfill, and all of the other every day realities of life that must be handled.
There are many, many ways you can pursue your entrepreneurial dreams with passion and excitement while still taking care of other responsibilities. You can pursue a dream part time, on weekends, etc., creating a solution that is both realistic and motivating for you personally.
Plan how to reach your dream
Be realistic. Set goals and plan how to reach them. Sound boring? It doesn't have to be. Think in terms of each step as a success in itself, one achievement that is carrying you toward your larger ultimate achievement. Create a plan and celebrate progress along the way to stay enthusiastic and motivated.
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Evaluate Your Idea And Weigh The Risks
So you think you have a terrific idea for a business. Congratulations! It is very exciting to contemplate taking that big step into entrepreneurship. Before you get too far down the path of dreaming about great success and riches, though, it is important to evaluate your idea and weigh the risks of pursuing it as a business.
Evaluate your idea
There are a number of ways to evaluate your business idea, most of which require a great deal of self-honesty and objective thought. Here are a few questions you should ask yourself when evaluating any entrepreneurial idea:
Does the idea truly solve a problem or fulfill a need?
What is the exact problem or need it will address?
Is your idea original and new?
Is your idea a unique combination or update of other existing ideas?
What are the limitations of your idea?
Are there other variations of your idea?
Is your idea appealing and easy to market?
Is your idea affordable to potential customers?
How complicated is it to put your idea into action?
Some of the questions you will use to evaluate your idea will vary depending on the specific product or service you propose. Use the above list as a starting point, then add or delete questions that are relevant to your particular business proposal.
Weigh the risks
Once you have evaluated your idea and thoroughly explored its potential, you must also weigh the risks of moving forward with starting a business based on that idea. There are always risks inherent in any business, but if you identify them in advance and determine which risks are reasonable you can significantly increase your chances of success. Some of the questions to ask as you are weighing the risks include:
What investment will be required to start the business?
What are the expected revenues for the first 18 to 24 months of the business?
Are the expected revenues enough to keep up payments on any financial debts that may be incurred?
What factors need to go right for the projected revenues to become reality?
What factors could go wrong and prevent the projected revenues from becoming reality?
How much competition is there in the marketplace?
Are there enough potential customers to justify the investment of time, effort and money?
What needs to go right for you to be successful and how likely is it that those things will occur?
What could go wrong and prevent you from being successful, and how likely is it that those things will occur?
It is critical that you be honest and objective about risks associated with your business idea. Only through critical thinking and careful evaluation of risk can you determine if it is appropriate to pursue your idea.
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Four Top Tips For Starting Your Own Business
Congratulations! You have done enough research and gathered enough information to believe that your business idea is a good one and you have decided to move forward with starting your own business. What are the next steps you need to take?
Here are our four top tips for important steps you must take to successfully start your own business.
1. Establish the correct legal structure
Perhaps the most important decision you will make about your business is selecting a legal structure. There are several legal structures you can consider for your business, including:
Sole proprietorship
General partnership
Limited partnership
Limited Liability Partnership (LLP)
C Corporation
S Corporation
Limited Liability Company (LLC)
Non-Profit Corporation
Professional Corporation (PC)
Professional Association (PA)
Professional Limited Liability Company (PLLC)
The best legal structure for your business will depend on several factors, such as your need to obtain insurance or financing, the type of business you want to run, and how you intend to handle tax issues. It is well worth the time and cost to consult a professional to help you select and establish a proper legal structure.
2. Establish an accounting system
The accounting system will be driven in part by the legal structure of your business. The larger and more complex your business, the more likely it is you will need outside help with your accounting, whether in the form of a bookkeeper for handling daily and weekly transactions or a Certified Public Accountant (CPA) for more comprehensive accounting work.
In most cases it is a good idea to consult a CPA during the business startup phase to get professional advice and insight into the accounting needs you will likely encounter. Even if the ultimate advice is for you to handle accounting tasks yourself via one of the many small business accounting software packages on the market, you will have the peace of mind that you have chosen an accounting system that is best for your business.
3. Register the business name
It is important to register your business name, which often occurs as part of obtaining your business license. When you register the name, you identify your business as a unique entity with a unique identity, and help protect yourself from the potential confusion that could result from someone else taking on the same business name as you.
The registered business name will be reflected in all of your official business paperwork such as tax statements, tax returns, financial statements, etc. Specific registration steps vary from state to state, so check with your Secretary of State for details about the correct process for your location.
4. Establish sound business processes
When you establish sound business processes right from the start, you simplify your business life immensely. The right processes will help you generate sales, properly invoice customers, and manage business growth over time. Key business processes include:
Sales process - prospecting for new customers, making and maintaining contact with customers, follow up and tracking of orders, generating referrals and repeat business
Billing process - invoicing, aging and tracking of invoices, posting payments to accounts, credit and collections
Growth process - hiring employees, evaluating expansion opportunities, risk vs. reward, financial requirements of specific growth options
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Is Entrepreneurial Spirit Unique To A Few People
Why do some people seem to have an unending entrepreneurial spirit, while others appear to have none at all? Doesn't everyone want, on some level, to be their own boss and control their own destiny? Can anyone become a successful entrepreneur?
The answers to these questions and similar questions may surprise you.
Does everyone have an entrepreneurial spirit?
At a very basic level, yes. Nearly everyone dreams of owning their own business at some point in their lives. Perhaps they are attracted by the apparent freedom or glamour that comes with being a business owner, or perhaps they genuinely want to build something of value and take on the responsibility of developing a successful business.
Can everyone turn his or her entrepreneurial spirit into a successful business?
No. This is a harsh truth that some people do not like to hear or face, but it is the underlying reason why some entrepreneurs succeed while others fail. It is simply not enough to have the desire to own a business. You must be realistic about the amount of work and time it takes to be successful, and be willing to truly commit to performing that amount of work.
How do I know if I can be successful?
The easy answer is that you will never know until you really try, but that is a risky premise on which to base a huge life decision like starting a business. While no entrepreneur is ever assured of being successful, there are some personal characteristics that successful business owners tend to have in common. These include:
Willingness to work hard and focus on the business 24/7
Enough self discipline to work when there is no "boss" around
Understanding that success comes over time, not overnight
Ability to deal with the very real risk of failure
Realistic view of all aspects (good and bad) of owning a business
Strong, burning, nearly all-consuming desire to own a business
What if I'm not sure?
Most business experts will tell you that if you are not sure about starting a business then you are not ready to start a business. In general, this is true, but remember that there is a fine line between genuine uncertainty and simply letting your fear stop you from doing something that is very important to you. It takes honest self-evaluation and some deep soul- searching to determine which of these is true for you.
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Owning Your Own Business Requires A Leap Of Faith
Owning your own business requires research, planning, hard work, perseverance, creativity, determination, motivation, self-discipline, inspiration, and so much more. The list of requirements could go on and on. In end, though, no matter how much you plan and prepare the decision to take the leap and own a business requires a leap of faith.
Faith in yourself
You have to have faith in yourself. Nobody else can make your business a resounding success but you, and there will be times where it seems as if nobody else believes in you except you. Those are the times when your faith in yourself will be tested.
You might wonder "Am I really good enough?" or "Do I really have what it takes to succeed?" but if you have faith in yourself, you will already know that the answer to those questions is Yes!
Faith in your preparation
The underlying foundation of your success is the quality of preparation and planning that went into the process of starting up your business. Experts agree time after time that it takes a solid business plan and realistic expectations of the amount of work it takes to be a successful business owner.
If you did indeed put together a thorough, detailed business plan and did what was necessary to prepare yourself for the rigors of entrepreneurship, then you are in a good position. Have some faith in your preparation and stick with it through the hard times.
Faith in your instincts
The most successful entrepreneurs plan and prepare, but they also develop and learn to trust their instincts. Having faith in your instincts does not mean making snap decisions based on poor information or unrealistic expectations. It means listening to that little voice inside your head and paying attention to that feeling in your gut that tells you when something does not feel quite right, or that a risk is worth taking. Much like a "mother's intuition", your instincts will grow with time and experience.
Faith in your ability to learn from mistakes
It is inevitable. When you own your own business, you will make mistakes. You can plan and prepare as thoroughly as possible, and still mistakes will occur. Now what?
Instead of berating yourself or falling into a funk over your misstep, make a point of learning from your mistake and putting processes in place to help prevent it from happening again. Mistakes can shake the confidence of any entrepreneur, but if you have faith in your ability to recognize and learn from them you will be okay in the end.
Faith in your ultimate success
The final leap of faith you must take is to have faith in your ultimate success. Whether that ultimate success comes from the business you currently own or from a future business does not matter so much as how firmly you believe you will eventually succeed. We are not talking about blind faith or foolish and unrealistic beliefs, but rather consistent efforts to plan, make good decisions, and learn from mistakes in order to improve.
When you have well-founded faith in your ultimate success, you are in control of your own business destiny. And isn't that what entrepreneurship is really all about?
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Reinvention - The Art Of Entrepreneurial Success
The concept of reinvention is part of the art of entrepreneurial success. Whether you are reinventing an existing business or reinventing an old idea to start a new business, reinvention is a very common theme of activity among all types of entrepreneurs.
Reinvent an old or existing idea
For many entrepreneurs, success comes not from coming up with a totally original idea, but rather from reinventing an old or existing idea into a new form.
A recent example of reinvention is the movie rental business. For many years, the business model consisted of a local video rental store where customers could come to select a movie, rent it, then return it within a few days. It was a successful model that worked well for many years. The popularity shift away from the VHS tape toward the DVD, though, opened the door for a reinvention of the movie rental business model.
This new model - NetFlix mail order movie rental - uses the power of the Internet and postage-paid envelopes to make it easier and more convenient for movie lovers to rent a wide range of movies for a single monthly subscription price. What at first seemed a novelty quickly became hugely popular, spawning competing services and a genuine shift in the business model for movie rentals.
Reinvent an existing business
Another common type of reinvention is when an entrepreneur already has a business and for some reason chooses to reinvent it. This may take the form of restructuring, changing brand identity, adding or dropping products and/or services, or using customer feedback to streamline and otherwise improve the business.
Let's take another look at the movie rental example above. Soon after NetFlix reinvented the old concept of movie rentals, the dominant movie rental company (Blockbuster) was forced to reinvent its existing business in order to stay competitive. They launched their own mail order rental service, adding features and benefits that would also keep customers coming into the physical rental store locations.
Sometimes competition forces an entrepreneur to reinvent their business, but sometimes the cause is internal in nature. Maybe customer satisfaction is down and changes must be made to improve it, or perhaps the business changes ownership and the new owner decides to re-brand the business as part of the transition.
Reinvent the competition
One of the most innovative ways that entrepreneurs reinvent their businesses is to reinvent the competition. One way to do this is to define competition not just as other businesses, but also as themselves. They set up a culture where the business competes against itself to improve performance. This may take the form of trying to increase sales week over week or month over month, or of improving customer service measurements over a specific time frame.
Regardless of the measurements put in place, the basic concept is to focus on improving the business by making internal improvements. Improvements may include one or more of the following:
Better training
Better service
Better work attitudes
Less down time
Fewer mistakes
Fewer injuries or accidents
Greater efficiency
More convenient hours
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Risk Takers - The New Breed Of Entrepreneur
Entrepreneurs have long been viewed by many people as extreme risk takers, willing to sink everything they own into a business venture at the drop of a hat. While this may be true of some entrepreneurs (usually the ones that fail) the real truth about successful entrepreneurs is that they take risk because they believe it will pay off in the end. The basis of this belief may be well researched and documented, or it may be a burning inner desire to succeed, but in either case, we see entrepreneurs who take risk for the reasons they feel are correct.
Calculating risk
The new breed of entrepreneur will calculate the risks involved in a business venture and determine if the level of risk is acceptable. The definition of what is acceptable will vary greatly from person to person, but the common thread is that this type of entrepreneur does not just jump into business on a hope and a prayer. Risks are evaluated in a variety of ways, including financial and personal, before a final decision is made about whether or not to start a business.
Acceptable level of risk
So how does an entrepreneur determine an acceptable level of risk? The answer depends on the individual. For example, a recent college graduate with no family or other outside responsibilities may be willing to accept more risk than someone who has a family, a house, and other considerations. Another influencing factor is the amount of passion and belief the person has in their business idea. A truly burning passion and unwavering belief will often lead to acceptance of a higher level of risk because the person simply believes so completely in his or her vision.
Measurable chances of success
Some of the new breed entrepreneurs are more focused on finding ways to measure their chances of success. This is not entirely possible, of course, but thorough research and careful analysis of information can yield useful metrics. These entrepreneurs approach business from a standpoint of establishing measurable chances of success, and then selecting a business that yields the most favorable results.
Passionate belief
There have always been entrepreneurs who go into business because of their deeply held, passionate beliefs in the potential for success. This is still the case, but what makes this new breed of entrepreneur different is the range of tools and resources available to assist them with success.
The Internet alone has transformed the world of entrepreneurship, making it possible for a person to build an extremely successful business that exists entirely on the web. The relatively low cost of internet-based businesses means that more and more entrepreneurs can afford to follow their passion without requiring extremely high levels of return to be successful.
Developing wisdom
New breed entrepreneurs pay attention to developing wisdom along the way. It may take the form of personal wisdom that comes from experience, or tapping into the wisdom developed by others. This does not mean they follow conventional wisdom; in fact, they often seek information from non-mainstream sources and ignore conventional beliefs as a way of finding that special, unique idea that can lead to a successful business.
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Self-employment Vs. The Corporate World
Anyone considering a leap into entrepreneurship must first carefully consider the differences between self employment and employment in the corporate world. Working for yourself is vastly different from working for someone else, far more so than most people think in the beginning. If you are going to be successful as an entrepreneur, you must have a realistic, objective understanding of the pros and cons of each type of employment.
Structure and routine
In the corporate world, there is a great deal of structure and routine. The hours of work are established, job descriptions specify required skills and activities, and there are rules and procedures that each employee must follow. There is also typically a hierarchy of employees, from front line workers all the way up through supervisors, managers, executives and the CEO. The corporate culture and environment is generally established and employees learn to work effectively within that environment. In return, they receive a steady paycheck and often other benefits such as health insurance, access to a 401K plan, paid vacation time, paid sick leave, etc.
Self-employment, on the other hand, is much less structured and routine. An entrepreneur does not have set work hours, and in fact will typically work very long hours compared to a corporate employee. An entrepreneur's job description is rarely written down formally, and the job responsibilities are easily summed up in one word - "everything". Self employment usually means fulfilling the roles of front line worker supervisor, manager, executive and CEO - all at the same time. In return, the entrepreneur receives an uncertain paycheck (none at all, if cash flow is not what it should be), few if any benefits, and no paid vacation time or sick leave.
Managing relationships
Corporate employment involves managing relationships, typically with co-workers and colleagues as well as with clients and customers. Depending on the specific job, though, the number and variety of relationships to be managed can vary widely. There are plenty of corporate employees who spend their time focused primarily on their own job responsibilities. They interact with others when they have to, but often do not actively seek and cultivate new relationships.
Self-employment requires managing relationships, but in a much more central and vital manner than most corporate employment. An entrepreneur must establish and maintain relationships with customers, vendors, financial resources, and legal resources, just to name a few. And even more importantly, an entrepreneur must manage their family relationships in a way that fulfills both the needs of the business as well as the needs of the family. Most entrepreneurs will agree that of all the relationships they manage, those with family are the most challenging and difficult because of the long hours and heavy workload that comes with self-employment.
Self discipline
Working in a corporate environment requires the self-discipline to come to work on time each day, fulfill responsibilities, follow procedures, take direction, and support company business strategies. Most people do all of these things because there are direct consequences (loss of pay, poor performance reviews, loss of job) for not doing so.
Self-employment requires the self-discipline to work hard each day, fulfill responsibilities, make decisions, wear many hats and perform multiple functions. An entrepreneur does these things despite the fact that there is no boss looking over his or her shoulder; these things are done because they need to be done, and the entrepreneur has enough self discipline and motivation to do them whether they feel like it or not.
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Starting Your Own Business Has No Age Limit
What is an entrepreneur? Webster's dictionary defines an entrepreneur as "one who organizes, manages, and assumes the risks of a business or enterprise." Rather a blunt, detached definition, don't you think? Notice, though, that no mention is made of age. The reality is that an entrepreneur is so much more than what Webster defines, and the sense of passion and adventure that leads you to start your own business is not limited in any way by your age.
How old is old enough?
If you are old enough to conceive of a business idea and are willing to put in the time and effort to make it a reality, then you are old enough to start your own business. It does not even need to be a groundbreaking or especially innovative idea to be successful. Many successful lawn maintenance and landscaping businesses have started with one enterprising young person mowing lawns in his or her neighborhood, and more than one commercial artist has started out drawing posters for a community theater or creating cartoons for their local church newsletter.
On the other end of the spectrum, of course, are entrepreneurs who want to start a business but they think they are too old to do so. Nonsense! No matter your age, no matter your experience, you can be a successful entrepreneur if you have a good idea and are willing to put in the work to make your business a success.
What does it take to be a successful entrepreneur?
Becoming a successful entrepreneur requires a few things, regardless of age or experience. The most successful entrepreneurs typically have the following attributes:
They are constantly coming up with new ideas and make a habit of writing them down
They actively look for ways to promote and develop their ideas
Their ideas usually are based on solving a problem or providing a convenience
They use their ideas to make money
They enjoy the challenge of starting their own business
This is certainly not an exhaustive list, but these are the characteristics and behavior patterns that are common among entrepreneurs of all ages.
My parents say I'm too young
Many young people have entrepreneurial ideas, and they are more likely to be successful if they have parents who support and guide them along the way. However, even if your parents say you are too young to be an entrepreneur, maybe their concern is more about the scope or scale of the business you propose. For example, if you propose a lawn mowing business that will require so much of your time in the spring and fall that your schoolwork suffers your parents will rightfully be cautious. Try talking with them to find out what it is about your idea that worries them, and ask for their help and advice to make your idea manageable enough that they are willing to support your efforts.
My children say I'm too old
Entrepreneurs on the other end of the age spectrum often meet resistance from their own children when proposing a business idea. Again, it is very common for their worries to arise from concerns about scale and scope of the proposed business. Many adult children worry about the impact starting a business will have on a parent's health, free time, and financial well- being. Just as with young entrepreneurs, it is a good idea to talk with your children about your business idea and help them understand exactly what you have in mind.
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The Advantages Of Franchising
Many entrepreneurs turn to a franchise business as a way to become self-employed. This can be a very good choice for both novice business owners as well as experienced business owners, providing many advantages over starting a business from scratch.
Help and expertise
One of the biggest advantages of pursuing a franchise business is the help and expertise available from the franchiser. While this will vary from company to company, most franchisers will provide you with or help you acquire everything you need to start up and run the business. Common areas of help include:
Location selection
Construction and design
Equipment
Supplies
Training
Marketing
Operations
Management
Hiring and employee relations
Some franchisers go so far as to make their franchises true turnkey businesses. In these cases the franchisee may be provided with an intact business operation, established territory and clientele, and even inventory and other supplies stocked up and ready for use.
Higher success rate
Investing in a reputable franchise operation greatly increases your chances of being a successful business owner. This is because you are buying an established and proven business concept, along with all of the support and expertise provided by the franchiser. In fact, some business experts estimate that franchisees have up to an 80% chance of success within the first few years of business, compared to a 70% to 80% chance of failure for those entrepreneurs who instead choose to start an independent business from scratch.
Lower supply costs
Most entrepreneurs face significant costs for all of the various supplies and materials they need to do business. Everything from office supplies to advertising to the products themselves typically cost more because a single business owner must purchase in small or limited quantities.
A franchisee, on the other hand, typically has lower supply costs because most of their supplies are purchased through or in the name of the franchiser. The larger purchasing power of the parent company means they can get better pricing on nearly everything a franchisee needs, and that savings is then passed along.
Established brand recognition
When an entrepreneur chooses a reputable franchiser, they get the significant advantage of established brand recognition. They do not need to go through the long and painful process of creating a brand, communicating it to the marketplace, and establishing a base of customers. The franchiser has already done that, whether recognition has been established nationally or regionally.
A good franchiser will reinforce the brand recognition on an ongoing basis as well, usually through advertising and promotion. A franchisee typically supports these activities through monthly franchise fees and marketing fees, but the costs are quite a bit less than if the franchisee were to take on these functions independently.
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The Disadvantages Of Franchising
Investing in a franchise is a very common and popular way for entrepreneurs establish their own business quickly and relatively easily. While a franchise can be an excellent choice, offering many advantages over starting an independent business from scratch, it is by no means a "sure thing" when it comes to success. Even the best franchise opportunities come with some disadvantages.
Initial costs
The initial cost of buying into a franchise can be quite high. In general, the more well known the franchise is the more it will cost you to buy in to it. It is not unusual for the most famous franchises to require an initial investment of hundreds of thousands of dollars, and sometimes even more.
If you are like most entrepreneurs and do not have that much cash laying around, you will need to arrange appropriate financing for your franchise venture. Some franchisers will help you obtain financing, while others leave that entirely up to you. In nearly every case, though, the franchiser will require you to put a certain amount of cash down, and/or will limit the percentage of the buy in cost that can be financed. They do this to ensure their franchisees are serious enough to invest their own money in the venture, and also to ensure that the total debt load is not so overwhelming that the franchise location will have trouble being successful.
Strict rules and procedures
It is quite common for franchisers to have strict rules and procedures that must be followed exactly by franchisees. These rules can include big things like logos and color schemes and run all the way down to little things like how napkins are to be folded and what color straws must be used. The franchiser has good reason to pay attention to such details, because the strength of their brand and overall business lies in knowing that each franchisee will follow the rules exactly and create a standardized customer experience.
The amount of control exerted by the franchiser will vary from company to company, and in some cases the requirements can be quite restrictive. For an entrepreneur who goes into business to have more control over their everyday life, it can be extremely frustrating to be required to submit to the parent company's terms and conditions.
Ongoing costs
Most franchise businesses require payment of ongoing fees in addition to the initial cost of the buy in. These fees are generally royalties based on a percentage of revenue as well as costs for other services such advertising, marketing, and general brand promotion.
Pay close attention to potential ongoing costs of any franchise you are considering, because they can add up quickly and cut into the amount of profit you will actually get to keep. Beware of franchisers that require unreasonably large monthly fees or charge a fee for every bit of help and support they offer along the way.
Mixed levels of ongoing support
When an entrepreneur chooses a reputable franchiser, they get the significant advantage of established brand recognition. They do not need to go through the long and painful process of creating a brand, communicating it to the marketplace, and establishing a base of customers. The franchiser has already done that, whether recognition has been established nationally or regionally.
A good franchiser will reinforce the brand recognition on an ongoing basis as well, usually through advertising and promotion. A franchisee typically supports these activities through monthly franchise fees and marketing fees, but the costs are quite a bit less than if the franchisee were to take on these functions independently.
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Where Do Entrepreneurs Get Their Ideas
Newspapers and business journals are full of stories about people who start new businesses. Some of their ideas seem obvious in hindsight, while others seem silly and illogical, but somewhere along the way, each idea was grasped by the entrepreneur and turned into a working business. How does this happen? Where do entrepreneurs get their ideas for starting a business?
The truth is that there is no single source of business ideas. They can spring from many sources and in many forms, but the one thing they have in common is that someone took each idea and made it into a business. Let's take a look at some of the ways ideas emerge into the thoughts of successful entrepreneurs.
Traditional method
A very traditional approach to developing entrepreneurial ideas is much less creative than it is methodical. Following a traditional development path, ideas are born out of research and evaluation based on measurable criteria, and then massaged and analyzed and tested through an exhaustive process of planning and preparation. A typical process might look something like this:
Choose an industry or field in which you think you would like to work
Investigate the types of businesses and business models within that industry or field
Conduct research to evaluate the marketplace, including potential demand, competing products, prices, distribution methods, etc.
Begin work on a business plan, testing the plan against additional information gathered through research and evaluation
Determine financing needs
Finalize the business plan and secure appropriate financing
Start the business
Not exactly a "bolt of lightning" out of the blue, but this process does work and has worked for many entrepreneurs. The key is to be very thorough and very patient, because it takes time and serious thought to get from the initial step of selecting an industry to the final step of actually starting the business.
Pursue your passion
Many entrepreneurs generate their ideas by paying attention to the things in their lives about which they have great enthusiasm and passion. This is the romantic version of discovering a great business idea, one that attracts a large number of people who are unhappy in their lives or otherwise feel a strong need to do something that is more fulfilling and worthwhile.
While it is true that finding and pursuing an idea with personal meaning is a great way to generate ideas, to be successful the process needs to have at least some measure of structure and responsible evaluation. A typical idea development process might look something like this:
Personal reflection and self-discovery to determine what you really want, what really excites you, and how that might apply to a business
Capture ideas that come into your mind, both the spontaneous kind that just pop into your head as well as the "slow burning" kind that emerge over time
Pay attention to the world around you and look for needs or desires that are not met by someone else's products or services
Replicate another successful business, but in a way that is tailored to your marketplace and incorporates unique features that make your business stand out in some way
Think about where you like to shop, eat, spend your time, etc., and pursue a franchise opportunity in that area
Once you discover a great idea and test it against sound business practices, if it appears to be a viable business idea then you are in a position to move forward and start your own business.
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Why More People Are Building Their Own Business
The entrepreneurial dream of building a business is something that nearly everyone has felt at some point in his or her life. For some it never gets further than a childhood lemonade stand on the street corner, but for others it is desire and a passion that just will not leave them alone.
Why are more and more people turning their dream into reality and building their own business? What drives a person to dive into the uncertain world of entrepreneurship, with all of the attendant risk, hard work, and unknown outcomes? Let's look more closely at some possible answers to these questions and more.
The urge to follow a dream
Some people cannot remember a time when they did not dream about building their own business. Maybe they have a passion for building, or inventing, or selling, or any one of millions of other potential dreams. For these people the urge to follow their dream is stronger than the fear of failure, so it just feels natural to stray from the safe path of employment into the world of business ownership.
The most successful "dreamers" are those who combine their dream with savvy market evaluation, a solid business plan, and the inevitable hard work. Even if they do not succeed on the first try or the second try or more, dreamers are so passionate about their vision that they view failure not as the end, but rather as a temporary stop along the way to ultimate success.
Escape from corporate life
Many people turn to building their own business as a way to escape the corporate life. The reasons for wanting out are nearly endless, ranging from quality of life and family issues all the way to a firm belief that they have a better way of doing business. Regardless of the reasons, one thing these "escapees" have in common is that they have enough business experience and have spent enough time in the working world to have a basic understanding of what it takes to run a business.
In the current marketplace of generally high employment, more and more escapees are making the leap from corporate life because they feel relatively safe doing so. They know that if their business venture ultimately fails the high demand for qualified workers means they will likely not have too much trouble going back to the traditional working world.
Downsized
The entrepreneurial ranks of the downsized are among the fastest growing group of people starting their own business. Like escapees from corporate life, they tend to have strong business backgrounds but unlike escapees, their departure from the corporate world is involuntary. Faced with no job and the need to make a living, many simply choose to start their own business rather than go through the hassles and hoops of finding a new job in the corporate world.
Too much energy to retire
Another increasingly common group of entrepreneurs is retirees who just cannot see themselves living a leisurely life of retirement. Instead, they opt for starting their own business in order to stay busy and occupied in their later years.
For these people, the idea of starting their own business is simply another stage in their life to be embraced and appreciated for all of its challenges and adventures. They typically feel financially secure and are willing to risk some of that financial security for the potential rewards of becoming a successful business owner.
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.................................................................................... TOP
Why More People Are Building Their Own Business
The entrepreneurial dream of building a business is something that nearly everyone has felt at some point in his or her life. For some it never gets further than a childhood lemonade stand on the street corner, but for others it is desire and a passion that just will not leave them alone.
Why are more and more people turning their dream into reality and building their own business? What drives a person to dive into the uncertain world of entrepreneurship, with all of the attendant risk, hard work, and unknown outcomes? Let's look more closely at some possible answers to these questions and more.
The urge to follow a dream
Some people cannot remember a time when they did not dream about building their own business. Maybe they have a passion for building, or inventing, or selling, or any one of millions of other potential dreams. For these people the urge to follow their dream is stronger than the fear of failure, so it just feels natural to stray from the safe path of employment into the world of business ownership.
The most successful "dreamers" are those who combine their dream with savvy market evaluation, a solid business plan, and the inevitable hard work. Even if they do not succeed on the first try or the second try or more, dreamers are so passionate about their vision that they view failure not as the end, but rather as a temporary stop along the way to ultimate success.
Escape from corporate life
Many people turn to building their own business as a way to escape the corporate life. The reasons for wanting out are nearly endless, ranging from quality of life and family issues all the way to a firm belief that they have a better way of doing business. Regardless of the reasons, one thing these "escapees" have in common is that they have enough business experience and have spent enough time in the working world to have a basic understanding of what it takes to run a business.
In the current marketplace of generally high employment, more and more escapees are making the leap from corporate life because they feel relatively safe doing so. They know that if their business venture ultimately fails the high demand for qualified workers means they will likely not have too much trouble going back to the traditional working world.
Downsized
The entrepreneurial ranks of the downsized are among the fastest growing group of people starting their own business. Like escapees from corporate life, they tend to have strong business backgrounds but unlike escapees, their departure from the corporate world is involuntary. Faced with no job and the need to make a living, many simply choose to start their own business rather than go through the hassles and hoops of finding a new job in the corporate world.
Too much energy to retire
Another increasingly common group of entrepreneurs is retirees who just cannot see themselves living a leisurely life of retirement. Instead, they opt for starting their own business in order to stay busy and occupied in their later years.
For these people, the idea of starting their own business is simply another stage in their life to be embraced and appreciated for all of its challenges and adventures. They typically feel financially secure and are willing to risk some of that financial security for the potential rewards of becoming a successful business owner.
2 Ex-Job Interviewers/Certified Professional Resume Writers Reverse-Engineer Your Resume in 48 Hours to Increase the Chance for Interviews from 2%-98%
Call Or E-mail Now To Start.
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