Jumping off the deep end: What would-be entrepreneurs must know before starting a business

Jumping Off the Deep End: What would-be entrepreneurs must know before starting a business

By Schellene Clendenin, GoForth Institute

 
Starting a business of your own can be like jumping out of a plane without knowing how to open the parachute.
 
As you hurtle closer and closer to the Earth, thoughts like: "Am I ready for this?" may crop up.
 
But there are other questions to consider, such as what should you name the business? Where can you find the funds to start? What is a business plan?
 
We asked Bruce Lacroix, owner of Lacroix and Associates Consulting and visited Canada Business online for advice on what would-be entrepreneurs should know before they order business cards.

•  "Love what you do," advised Lacroix. Many small business owners spend considerably more than 40 hours per week building and maintaining a business. So enjoying what you do can mean the difference between dragging yourself out of bed to go to work or looking forward to the day ahead. For example: Love to read? Perhaps your city needs a used book store. Is your pizza sauce good enough to make angels sing? Maybe restaurant ownership is in your future. 
• "Know your goals," Lacroix suggests. Do you want to be paid to travel, work at home, save money to buy a house? Knowing what your goals are before you start a business allows you to set priorities and determine where you need to be and when in order to attain them. Canada Business also suggests choosing the name, location and vision for your career before any decisions are made.
• Be sure your values are reflected in the work you do. "It's important that your business goals match your morals and ethics," Lacroix said. Is sustainability important to you? Community service?  When your business values echo personal values it's easy to build them into your over all business plan."Be good," he adds. When you show people are are honest and trustworthy, they are more likely to come back to you and to recommend your company to others.
• Even if you have grandiose plans - such as a franchise that will span a continent - start small and managable. "Bite off chunks you can chew," Lacroix opined. To do that entrepreneurs must start making money right away. "Build your cash flow by working your way up," he said. Once you have a steady cash stream it's easier to make the business grow. "Even the Googles and Apples of the world started in someone's garage," he said.
• Find models and mentors, he said. Many business plans echo those of folks who have tried them before - and been successful. Why not seek a few out and ask for advice? Canada Business suggests seeking out information on similar businesses to determine the value of the product, how best to distribute and promote it, whether a patent is needed, what governmental obligations you may have and costs to build a business. 
• Realise that it is OK to make mistakes. As children, he said, we learn to crawl, then stand then walk, with many falls along the way. Mistakes are inevitable. "Be open to not doing it perfectly the first time," Lacroix said. That's why we start small."
• Get and stay healthy. Eat properly and take care of your mind body and spirit, Lacroix said. Making time for your health means you will have more energy for the work ahead - and you are going to need it.
• Find a way to stand out from the crowd. Canada Business suggests determining who you are; what you do; what you have to offer; what market you want to target; and how you plan to do that. Lacroix suggests marketing the ways in which you are different from the others in similar businesses. Highlight what makes you better than the competition.
• Determine if you want to own sole proprietorship of the business or if you want a partner. Canada Business said both have advantages and disadvantages, so weigh your options carefully before making a decision.
• Find the financing. According to Canada Business, money is available to would-be small business owners both through government grants and loans and private funds. Some entrepeneurs suggest figuring up how much it will cost to get the business off the ground and then multiplying the number by three. 
• Finally, market like crazy, Lacroix concludes. Whether you utilize social networking or newpaper ads, make sure your name is out in the public. Lacroix said he often hears business owners say the first thing they plan to do in a downturn is cut advertising dollars. Bad idea, he said. Advertising doesn't have to cost a lot of money. "There are lots of ways to market, but you need to stand out (from the crowd)."

Schellene Clendenin is a freelance journalist who specializes in covering the small and medium-sized enterprise scene.  She lives in Portland, Oregon with her scottish terrier, Angus. Contact Schellene: mighty_impatient@hotmail.com

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