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Entrepreneur Press - Start Your Own Business, Fifth Edition: The Only Start-Up Book Youll Ever Need

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Start Your Own Business, Fifth Edition: The Only Start-Up Book Youll Ever Need
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Entrepreneur Press
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Entrepreneur Press
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Books / Business
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2010
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BE YOUR OWN BOSS Entrepreneurs enjoy a freedom few ever know. Starting your own business is one of the few remaining paths to wealthand this book is a valuable road map. Robert K. Kiyosaki, Author of Rich Dad Poor Dad Tap into more than 30 years of small business expertise as you embark on the most game-changing journey of your life your new business. This unmatched guide - the best-selling business startup book of all time - offers critical startup essentials and a current, comprehensive view of what it takes to survive the crucial first three years, giving your exactly what you need to survive and succeed. Plus, youll get advice and insight from experts and practicing entrepreneurs, all offering common-sense approaches and solutions to a wide range of challenges. Pin point your target market Uncover creative financing for startup and growth Use online resources to streamline your business plan Learn the secrets of successful marketing Discover digital and social media tools and how to use them Take advantage of hundreds of resources Receive vital forms, worksheets and checklists From startup to retirement, millions of entrepreneurs and small business owners have trusted Entrepreneur to point them in the right direction. Well teach you the secrets of the winners, and give you exactly what you need to lay the groundwork for success.

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Table of Contents

Editor: Marla Markman

Contributing Writers

Jill Amadio, Leanne Anderson, Jane Easter Bahls, Stephen Barlas, Stephanie Barlow, Johanna Billings, Bruce Blechman, J. Tol Broome, Andrew Caffey, Melissa Campanelli, Carolyn Campbell, Melissa Caresosa, Cassandra Cavanah, Janean Chun, James Clark, Bob Coleman, Charlene Davis, Cyrstal Detamore-Rodman, Sandra Eddy, Paul & Sarah Edwards, Clifford Ennico, David Evanson, Barry Farber, Iris Lorenz-Fife, Lorayne Fiorillo, Jerry Fisher, Barbara Frantz, Charles Fuller, Cheryl Goldberg, Kim Gordon, Cynthia Griffin, Mark Henricks, Mike Hogan, Frances Huffman, Christopher Keanelly, Danielle Kennedy, Erika Kotite, Jay Conrad Levinson, David Lindo, Jacquelyn Lynn, Richard Maturi, Robert McGarvey, Sean Melvin, Gwen Moran, Heather Page, James Park, Jennifer Pellet, Chris Pentilla, Marcia Perkins-Reed, Debra Phillips, Karen Roy, Edward Rybka, David E. Rye, Eileen Figure Sandlin, Bev Stehli, Gayle Sato Stodder, Guen Sublette, Joan Szabo, Conrad Theodore, Bob Weinstein, Glen Weisman, Geoff Williams, Linda Wroblewski

FOREWORD

by Peter Shea

W hen we first published our Start Your Own Business in 1998, we thought it would make a great reference for people who wanted to be their own boss. We offered advice on what steps to take, and what pitfalls to avoid. The book offers common sense approaches to a wide range of challenges facing the new entrepreneur, drawing solutions from the successes and failures of others.

Start Your Own Business has been a phenomenal success. With more than 400,000 copies in circulation through four editions, its the best-selling business startup book of all time. Business is affected by everything from advances in social marketing to the iPhone, from law changes governing entrepreneurs to the impact of Google on building a customer base. These are fascinating, and exciting, times for the independent business owner.

Theres no doubt that the recent recession has created the most challenging business environment in generations, affecting everyone from the self-employed to General Motors. While most people might see such a sour economy as a mountainous barrier to success, the true entrepreneur sees the opportunities, and navigates the passes through to the other side. Even in economic downturns those with vision, and drive, can thrive.

With that in mind, I welcome you to the fifth edition of Start Your Own Business , updated with insights on the latest trendsincluding an entirely new chapter on social media and how to make it work for your business. Were also offering a somewhat longer view of what it takes to succeed. Earlier editions focused on the crucial startup phase. As an entrepreneur myself, I can tell you that starting a business is one thing, and nurturing it to robust health is something else. So weve also expanded portions of Start Your Own Business to include advice and guidance on surviving the crucial first three years.

Few people realize that some 600,000 new businesses are born each year, and the vast majority of them succeed. Ill let you in on a little secret about the winners. They succeed primarily because they prepare. And if Start Your Own Business does nothing else, it will give you the tools to build your own future and success. You cant just think about that great idea for a business. Once your idea is in place, you need to burrow down into the details of what you need to know and do in order to achieve the entrepreneurs ultimate goalfinancial security while working for yourself.

Ive had my own successes and failures over the years, and some of the lessons from both types of experiences are in these pages. The staff at Entrepreneur , who also know a thing or two about what it takes to thrive, have added their considerable knowledge, too. Start Your Own Business contains the best of what we all have to offer, in clear and unvarnished language.

All the best in your success.

Peter Shea, CEO and owner of
Entrepreneur Media, Inc.

ON YOUR MARK ...

Why did you pick up this book? Perhaps you know you want to be an entrepreneur and take charge of your own life. Youve already got a great idea for a business youre sure will be a hit. Or perhaps you think, somewhere in the back of your mind, that maybe you might like to start your own business but youre not sure what venture to start, what entrepreneurship is really like, and whether its for you.

Whichever of these categories you fall into, youve come to the right place. In Part 1, Think, well show you what it means to be an entrepreneur. Use our personal goals and objectives worksheet to decide if entrepreneurship is right for you. Dont have a business idea, or not sure if your idea will fly? Youll learn the secrets to spotting trends before they happen and for coming up with dozens of surefire business ideas. Well also discuss various ways of going into business, including part- and full-time entrepreneurship. Finally, well show you the different options for startup, such as starting from scratch, purchasing an existing business, or buying into a franchise or business opportunity system.

Planning is key to every thriving business. In Part 2, Plan, youll learn just what you need to do to lay the groundwork for success. Find out how to pinpoint your target market, plus dozens of ways to do market researchfrom hiring experts to money-saving do-it-yourself tips. Since the name you choose can make or break your business, we share plenty of techniques for coming up with the perfect monikerone that will attract customers to your company in droves. And dont forget the nuts-and-bolts necessities like choosing a legal structurecorporation, partnership, sole proprietorship and more. Youll discover all the information you need to guide you through these often confusing steps to startup.

A business plan is your road map to success, guiding the growth of your business at every stage along the way. Well show you how to craft a business plan that puts you on the fast track. Finally, find out why you need professional advisors to help you through your startup, and learn how to select an accountant and an attorney who can help you make moneywithout costing you a bundle.

Speaking of money, every entrepreneur knows that adequate startup capital is essential to success. But just where do you find that crucial cash? In Part 3, Fund, we give you the inside scoop on getting the money you need. Discover dozens of sources of capital. We show you secrets to financing your business yourself, how to tap into the most common source of startup financing (family and friends), plus places you may never have thought of to look for money.

Do you stand a chance of getting venture capital or attracting private investors? Youll find out in this section. And if youre looking for a loan, look no further for the secrets to finding the right bank. We explain what bankers look for when evaluating a loan applicationand how to make sure yours makes the grade. Seeking money from Uncle Sam? Youll learn all the details about dozens of loan programs from the government, including special assistance for women and minority entrepreneurs. Whatever your needs, youre sure to find a financing source thats right for you.

As they say, theres no time like the present, so grab a cup of coffee, get comfortable, and lets start creating your business!

part 1

THINK

chapter 1

INTRODUCTION

W ith the purchase of this book, youve taken your first step on the road to entrepreneurship. Its not a step to be taken lightly, which is why buying this book may be the smartest thing youll ever do for your business.