Entrepreneurship 101 - tips to becoming your own boss

By Wendy Oliveras on Friday, October 30 2009

Perhaps this would be a good time to begin exploring entrepreneurship and assess if you have what it takes. Ask yourself: Are you tired of working for someone else? Do you feel that you cannot seem to find happiness in your work life? Do you feel stuck in your current position and see no room for growth? Do you feel unappreciated? Have you been laid off or fired and are now ready to start something new? If you answered yes to any of these questions, then maybe it's time to consider other work options, such as starting your own business and working for yourself.

Consider what I like to refer to as the “entrepreneur mindset.” The word “entrepreneur” (noun) is derived from Old French, entreprendre, meaning to undertake. Entrepreneur basically means someone who organizes, operates, and assumes the risk for a business venture. If you have ever thought about possibly being your own boss, think about the skills and/or experience you bring to the table. Sometimes even a simple hobby can develop into a successful business. As a small business owner myself, I can assure you that the road to entrepreneurship can be daunting, but achievable and quite rewarding. Below is a basic guide I put together to help you organize your thoughts about becoming your own boss.

PERSONAL CHARACTERISTICS

• Think about the type of person you are. For example, are you a follower or a leader; are you a risk taker; are you a resilient person; are you organized; do you plan in advance; are you able to make independent and fast decisions; are you patient or impatient; are you willing to put in the time to get things done; are you ready to sacrifice almost everything and anything; and do you get along well with others?


• Overall, think about how you handle rejection; how do you handle negativity from others or resentment; how do you tolerate setbacks; and how do you handle disappointments?


• Most importantly, consider how you generally handle your personal finances? Are you a spender or a saver?

• Is the idea a service or a product? Is it unique in nature? If not, how can you make it different? What is missing?


• Is the idea relative to your skills set and/or work/life experience? What do you bring to the table?


• Is the idea for profit or non-profit?


• Is there a need in your community or elsewhere for what you think is a new service or product?


• Create a list of pro’s and con’s.


• Are you thinking about going on your own or having a partner(s)?


• If you consider starting a business with a partner(s), consider what that person(s) bring(s) to the table as well. (Be sure that you trust and get along with that individual(s) and respect each other’s boundaries.)

• Conduct your due diligence before jumping into a new business venture. Consider location and need.


• Create a list of points to assist you in researching your new venture idea. Organize your thoughts and be clear, concise, and thorough.


• Network with others who are in the same industry or business owners themselves. Get their stories, experiences, and analyze and compare their responses to your business concept.


• Conduct extensive online research about your idea, i.e., name of company and anything else you believe might be relative to your idea.


• Does your research reveal any challenges or legal ramifications? Is your idea confusingly similar to what is already out there in the market? For example, is the name of your company or logo similar to another company name or logo? (Keep in mind that you do not want to copy another person's or company idea, since you can be sued at some point for patent or trademark infringement. Be original and dare to be different!)

• As a small business owner note that startup costs can drain you, so be smart about your spending from the beginning. Be cost effective regarding your marketing and advertising plans, since a large part of your revenue can easily be swallowed up by marketing campaigns. Plan ahead and spend carefully. (Again, research your marketing and advertising options because there are many free services available to you.)


• Whether you are single or married, consider where your startup monies are going to come from? For example, savings, personal loans, or borrowing money from family or friends.


• Are you and/or your family prepared to take on any financial burdens/sacrifices that may arise in launching the new business?


• If you decide on a business loan, consider applying for a small business loan from the Small Business Administration (www.sba.gov) or your local bank.


• Think about hiring an accountant who can assist you in properly filing your corporate taxes and provide financial guidance as your business grows.

• Are you thinking about working and starting your business from home?


• Do you need to have an office outside of your home? If so, do you have a particular location in mind?


• Are you considering a business out of state or perhaps another country?


• If you consider having an office outside of your home, get in touch with your local colleges to see if they have a “business incubation” facility. These types of incubation facilities are invaluable because they start-ups with business information, resources, networking opportunities, as well as business guidance. They also provide professional office space at a fraction of what you would normally pay for an office in a commercial building.

• I strongly recommend that you hire a corporate attorney to assist you in understanding your legal rights, obtain general guidance, and assist you in filing and paying any fees respective to your state’s small business requirements, if applicable.


• You will need to decide how you want to file your company legally. More particularly, do you want to file as a Sole Proprietor, Partnership, LLC, S Corporation, or C Corporation?


• Depending on your business, research business insurance companies to get the best rate.


• If you have particular services and/or sell a product, then consider intellectual property protection. Hire a patent or trademark attorney to help you to register your slogan or trademark, file a copyright, or file a patent invention application.

• Be passionate about your goal and believe in yourself.


• Focus, plan, and execute.


• Do not let “fear” stop you. Fear paralyzes people, their creativity, thought process, and ingenuity.


• Do not believe everything you hear. Make sure you use reliable resources. Question, research, and find things out for yourself until you are satisfied with the answers.


• Persevere and go with your gut instincts. If something does not feel right, then do not go forward.


• Never give up and never look back! As a risk taker, and regardless of what happens, you need to be ready to accept that your business has the potential of failing within the first 1-3 years. Do not allow yourself to fall into a comfortable zone. Keep creating ideas and work hard.

Wendy Oliveras is a columnist, author, search consultant, and career planning and development advisor. She can be reached at either (201) 947-6662 or via email wo@oliverascoinc.com. Please also visit her at http://www.twitter.com/wendyoliveras or http://www.linkedin.com/in/wendyoliveras or http://www.oliverascoinc.com.

To view Wendy’s previous articles, please visit http://www.examiner.com/x-22670-NY-Search-Consultant-Examiner. Thanks.