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Paul J. Christopher - The Entrepreneurs Starter Kit: 50 Things to Know Before Starting a Business

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Paul J. Christopher The Entrepreneurs Starter Kit: 50 Things to Know Before Starting a Business
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The Entrepreneurs Starter Kit: 50 Things to Know Before Starting a Business: summary, description and annotation

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The essentials for building a successful business from the ground up are clearly delineated in this primer for would-be entrepreneurs. Whether starting from scratch, buying an existing business, or becoming a franchisee, anyone dreaming of becoming their own boss needs to understand the fundamentals of business management addressed here. Choosing the right business, creating a business plan, analyzing finances, starting part-time, and hiring staff are just some of the topics that are covered in this thorough guide. Business readiness is evaluated in a reality check that assesses the motivation and intent of someone starting a new enterprise, and the pitfalls that cause 80 percent of new ventures to fail within five years are frankly addressed. Filled with strategies for managing risk and successfully executing a business plan, this book will help make the goal of independent ownership a reality.

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The Entrepreneurs Starter Kit

HURON STREET PRESS PROCEEDS SUPPORT THE AMERICAN LIBRARY ASSOCIATION IN ITS MISSION TO PROVIDE LEADERSHIP FOR THE DEVELOPMENT, PROMOTION, AND IMPROVEMENT OF LIBRARY AND INFORMATION SERVICES AND THE PROFESSION OF LIBRARIANSHIP IN ORDER TO ENHANCE LEARNING AND ENSURE ACCESS TO INFORMATION FOR ALL.

The Entrepreneurs Starter Kit

50 Things to Know before Starting a Business

Paul J. Christopher

CHICAGO 2012 2012 by the American Library Association Any claim of copyright - photo 1

CHICAGO 2012

2012 by the American Library Association. Any claim of copyright is subject to applicable limitations and exceptions, such as rights of fair use and library copying pursuant to Sections 107 and 108 of the U.S. Copyright Act. No copyright is claimed for content in the public domain, such as works of the U.S. government.

Extensive effort has gone into ensuring the reliability of the information in this book; however, the publisher makes no warranty, express or implied, with respect to the material contained herein.

ISBNs: 978-1-937589-02-8 (paper); 978-1-937589-22-6 (PDF); 978-1-937589-20-2 (ePub); 978-1-937589-21-9 (Kindle).

Library of Congress Cataloging-in-Publication Data

Christopher, Paul J.

The entrepreneurs starter kit : 50 things to know before starting a business / Paul J. Christopher.

p. cm.

Includes bibliographical references and .

ISBN 9781937589202 (pbk. : alk. paper) 1. New business enterprises. 2. Business planning. 3. Entrepreneurship. I. Title.

HD62.5.C458 2012

658.1'1dc23

2012003395

Series book design in Liberation Serif, Union, and Soho Gothic by Casey Bayer

Cover image Konstantin Yolshin/Shutterstock, Inc.

For Linda Marie

Contents

Preface

The Entrepreneurs Starter Kit is all about the excitement of going off on your ownbeing a business owner and entrepreneur. A major theme of this book is look before you leap. You would not cross a busy street without looking both ways; why would you start a business without a thorough understanding of what you are about to undertake and all the necessary planning tools to ensure your success?

This book was written for anyone who is seriously interested in, or has already taken steps toward, starting a business. You may just be thinking about it, you may have done your homework and started on a business plan, or you may be ready to leave your employer and start out on your own. At whatever stage of the process you find yourself, you will learn (among many topics) the importance of matching your business to your skills and temperament; why planning, including a written business plan, is critical; and the value of being financially literate. You will gain insights into hiring, marketing, inventory control, billing, and collections.

New business start-ups are so important in these difficult financial times. They offer hope and a solution to those who have been downsized or have limited growth potential with their current employers. Historically, entrepreneurs are the ones who have created the largest number of new jobs and have been the engine for national recovery and economic growth.

Of course, taking the leap has risks; this book attempts to be realistic and straightforward about the many issues facing new businesses. Personal and professional excitement always has to be tempered with the cold economic reality the entrepreneur faces. Along that middle path, however, lies the potential for real success.

Look before You Leap

Things to know before starting a business:

It isnt easy to make a business successful; if it were, everyone would have given it a try.

A business start-up is wrapped in convictions, assumptions, and beliefs, many of which may be false.

You can never have enough preparation, and you can never have enough start-up money.

True commitment to a start-up business is a lifestyle change, not just a career change.

A Reality Check

If you are reading this book, you have obviously decided to take the first steps toward being an entrepreneurmeaning that you have chosen a nontraditional path to fame and hoped-for fortune. You are embarking on a program of planning, starting, operating, and worrying over your new business. As best you can, you have taken the necessary steps to ensure your success. Whether you are opening a boutique in a fashionable neighborhood or a consulting business in your home, your decision reflects the same aspirations as literally tens of millions of people worldwide. Basically you are motivated to work for yourself and build a business that you find both intellectually challenging and financially viable.

Your motivation for venturing out on your own may be simple or complex, a mix of events and circumstances, some of which may be beyond your control:

You have talent that is underutilized and often underappreciated.

You are absolutely positive you can build the better mousetrap.

You have hit the glass ceilingbecause of income limitations, lack of career advancement, or sheer boredom.

You are concerned about long-term security in the job market.

You need or want a change in lifestyle and work style.

You can afford to take the financial risk of starting your own business.

A large part of the reality check, and a necessary part of your long-term vision, is understanding, from the beginning, that your expectations may not go the way you thought they would. First and foremost, you must realize that you may fail, and fail badly. From a personal, financial, business, and family point of view, you need to understand clearly that businesses failfor many reasons. The odds that you will not meet your goals are high, so high in fact, that the U.S. Department of Commerce estimates that 40 percent of all new businesses fail within one year, and of those that do survive, 80 percent will fail within the first five years. Other sources place the failure rate even higher. Imagine these percentages and apply them to the one million businesses started each yearincluding yours.

What Can Go Wrong?

Plenty. There are countless variables that ultimately affect the success of your business. Some elements are in your control (like keeping inventory levels reasonable), and others are not (a national economic recession). Though all the factors that affect business success cannot possibly be examined in detail in a single book, if you are doing a reality check, it is essential that you consider the following questions.

Just how prepared are you really?

Preparation is the key, both psychologically (you are ready and mature enough to make that leap) and financially (you actually have a plan and some resources). Some people have to act sooner than they had hoped or expected, because of a sudden loss of employment, for instance. Others, out of enthusiasm or overconfidence, act prematurelythey think they are ready but have not sought outside counsel, perhaps not even discussed the idea with a spouse or friend. All they know is that they are ready to move; anxiety and irrationality, rather than planning and preparation, are driving the decision.

In some cases being ill prepared may be related to age or work experience. Ironically, some of the most successful entrepreneurs of late have been young technology wizards, but realistically their numbers are few and far between. With age comes more experience and better business judgment. You dont have to spend thirty years in the work environment before you step out on your own, but five or six years of solid management experience in which you gain significant operational and financial know-how can improve your odds for overall success.

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