Starting Your Own Business... Oh Noooo!

Oh, oh! An idea has entered your mind. You're thinking that you want to own your own business.

This idea could have come to you as a thought out of the blue or because you suddenly find yourself facing imminent unemployment or even severe job dissatisfaction. Nevertheless, you're excited! There's a sparkle in your eye, a spring in your step and a new enthusiasm in your life. Here's an idea that's got you thinking. But is it the right thing to do? You could be making a great decision or an equally big mistake. Should you or shouldn't you?

It's important to discover your true motives and desires in wanting to start your own enterprise. Starting our on the right foot is critical. There are many stories about those unfortunate people who realized, too late, they made the wrong decision. Understanding your motives and desires will help you make the right decision in getting started. It will also help you define the business you should get into.

However, let's start at the beginning. There are many reasons why people want to start their own business. Getting frustrated with your current job situation, or your boss, is one reason. Wanting to get away from a bad situation is very common. We also know this is NOT a good reason for starting your own business. You might have been laid off from you company and finding a job is really difficult. This could even be your golden opportunity to do what you've always wanted to do -- work for yourself. Perhaps an opportunity has presented itself. Maybe you just want a change and doing it on you own is direction you want to go in. You might have a great idea for a new product or service. Super! The spirit of entrepreneurship is exciting and necessary for the growth of business and industry. As you can see, there can be many reasons you want to start your own business.

To start on the path of owning your own business, you should understand your own special reasons for this desire. Wanting to start a business is just the beginning. You must also understand the process of idea, the concept, the required planning and final realization of your goals.

It is important to understand the elements of operating a business and the necessary skills involved in making your ideas, products, or services, successful. This requires a deep soul searching as to exactly why you want to start your own business and an honest evaluation of your skills, knowledge, and abilities to actually operate a business.

A very good friend of mine loved to cook and would have parties of around 20-30 people. We loved his cooking and, in a flirtatious manner, we all suggested that he should open a restaurant. Unfortunately, he did! It did not work out. While he could plan an occasional party meal for his friends, he didn't have the necessary knowledge and skills to operate a restaurant 6 days a week with a daily variety of menu items and dealing fickle consumers. He had no knowledge of choosing a location, purchasing or supply management skills, hiring and managing staff, bookkeeping, marketing, or any of the required rules and regulations. By the time he learned what was required, he was both demoralized and financially unable to continue. If he had it to do all over again, he would do a tremendous amount of preplanning and research. He also realized that he really did need a well thought out business plan and marketing plan. His dream became a nightmare.

If you do prefer to work for yourself, you must understand that you will be your own boss and probably will require more from yourself than your boss might have. Owning your own business requires serious thinking. It requires no-nonsense consideration of your skills, talents, resources, and business acumen.

What kind of business do you want to operate? Will it be retail sales? Will it be service? Or both? Will it be a one-person operation? Do you have staff? Will you operate from your home or do you need rented or purchased operating space? Will you operate in your immediate area or will it be regional or national? Are there city, state or federal rules and regulations regarding your chosen business?

You can find all of this, and more by research! Once you know your own desires, it's a good idea to talk to other people who are in similar businesses. You can find out the pitfalls and mistakes they made and, if you're lucky, avoid the same problems. You can find out how and why they designed their business and learn about the many challenges they've encountered. You will be amazed how many people will gladly help you learn what's ahead. Ask as many questions as possible to get a clear picture of what you might be facing. You can gather information from a variety of places.

Excellent sources are everywhere -- individual business owners (especially those in the same business field you're interested in), Chamber of Commerce, Small Business Development Council (SBDC), Small Business Administration (SBA), SCORE, Attorneys specializing in business law, local libraries, any college or university business programs, network groups, professional associations, and more. The rapidly emerging world of on-line services such as America On Line, CompuServe, and the Internet can give you access to even more contacts and sources. There's no limit to the sources available from which to gather your needed information.

There are four common reasons that usually cause businesses to fail: 1. Under capitalization; 2. No business/marketing plan; 3. Poor management; and 4. No common sense what so ever. While these areas sound simple, they are quite detailed and require acute attention and great respect. Most importantly, each of these reasons requires lots of research and understanding.

If, once you know what you will be facing, you can still say that you want to start a business; you'll have a better chance of succeeding. Your desire will be defined and your understanding of the coming challenges will be clear. Usually common sense will prevail against blind desire.

If asked, most business people will tell you that they underestimated the challenges they faced and they had to learn many lessons the hard way. You don't have to forsake your dream. You can make it a wonderful reality by getting off on the right foot through simple research and understanding of what it will really take to make your dream come true.