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The Cold Facts of Starting Your Own Small Business

Do you have the right stuff to make it work? Ask yourself these

five questions before making that leap from steady paycheck to

entrepreneurial uncertainty:

1. Are you a self-starter? You must have the self-discipline to

plan, set goals, not procrastinate and stay focused.

2. What are your expectations? Do you think you'll work less and

have less stress and more money? Think again.

3. What are your financial goals? Be prepared to work more for

less money, at least in the beginning. Set up your retirement

plan in the beginning and stick to it. Forget vacations and be

sure to keep your health insurance going....now there is no one

but you to take care of these things.

4. Can you plan and organize? You'll be making countless

decisions each day. Can you make a workplace for yourself that

is free from distractions, where you can think, plan and

communicate? To be a success, you must combine your fantastic

ideas and business tools with solid planning and organization.

Success is never guaranteed and the variables and factors can

sometimes be out of your control. But if you ask yourself

honestly, before taking the plunge: Do I have what it takes to

run a business? The answer should tell you if the "American

Dream" is right for you.

95% of small businesses fail within the first five years? Why?

Here are a few reasons why:

1. Mistaking a business for a hobby. Just because you "love" to

cook doesn't mean you should/could start a restaurant.

2. Poor planning. Have you researched all aspects of start-up

costs and on-going expenses? Do you know what your monthly nut

is going to be and do you have enough capital to carry you

through for several years? Do you realize the sheer number of

hours you'll be working? Do you have the management skills to

wear all the hats necessary?

3. Only one product, one service or one big client. Markets

change and needs change...will you have the foresight,

flexibility, resources and ingenuity to change with the times?

Diversification will cushion you against the ebb and flow of

business tides.

4. Poor record-keeping and financial controls. If you don't know

how to keep records and do accounting and file taxes and other

business filings, find an expert to do it for you! Learn how to

review your revenue and expense reports each month so you always

have your finger on the pulse of your business.

5. Poor money management. Be prepared to plow all revenues back

into your business for the first several years. No frills, no

thrills, stick to a budget and a plan and forget vacations.

Don't use any of the business income on personal spending and

watch your business and personal debt, it can kill your new

business faster than a speeding bullet.

6. Wrong location. Can your customers easily find you? You know

the old saying "Location, Location, Location!" What about

visibility, image, parking, room to expand?

7. Competition. Check out your competition. Know who they are,

what they offer and what makes your products or services better

(or worse).

8. Poor time management. Wearing many hats is a reality of an

entrepreneur. Learning how to manage your time means the

difference between success and failure. A daily "To Do" list is

essential, with the top priority items at the top of the list.

Hire help for those things you don't know how to do or hate to

do.

9. Lack of Marketing and Sales Skills Keep track of what

marketing/sales ideas work and don't work and quickly drop those

that don't work. Hire a pro if you need to.

10. Poor Customer Service. Once you have a client, you need to

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keep them. This means you have to pay attention to the customer,

fulfill their needs in a timely manner, return their phone calls

and emails promptly, bill them properly, utilize a win-win

problem-solving attitude and BE NICE!

11. Entrepreneurial burnout. Owning your own business requires a

huge investment of time, money, energy and emotion. Take time

off for yourself, you are your greatest asset!

A lot of people do not realize that entrepreneurs play a big

role in our society.

When you put the total number of entrepreneurs together, they

count as the biggest financial contributors to our nation's

wealth. If only politicians would give grants to finance small

business start-ups, the economy's growth could be hastened.

Knowing the obvious financial rewards and the important role to

society of business owners, many individuals aspire to be

entrepreneurs. The fact remains, however, that several business

start-ups fail and never take-off from the ground because of one

thing: the lack of adequate and sufficient knowledge on how to

start and run a profitable business.

With proper planning and research and the necessary

professionals to help you in the areas that you are lacking in,

accompanied by adequate capital and resources, and fed by

imagination, energy, excitement and self-discipline, you could

be one of the many successes that is the backbone of the

American economy.

About the author:

Cynthia Macy has been successfully self-employed since she was

28 years old. She has traded foreign currencies and has

co-authored 3 forex training ebooks.

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