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It Will Need Financing

If you have a good idea, you may be able to find funding for your business. There are various government funds, plus venture capitalists.

If you want someone else to fund your business, you will need to prepare a business plan.

A word of caution. Try to find a business that does not require much startup capital. You want to be able to recover your startup costs within a year to two years at most. There are a lot of franchises out there which are really very expensive jobs. You buy yourself a job for $10,000 to $100,000.

If you have to invest significant funds to start the business, how can you recover your funds if the business does not work out? Also, how much could you sell the business for in 5 years? What aspects of the business would make people want to buy it from you? Would it be your inventory, your repeat customers or what?

It may be worth the investment of a little time and money to go and consult with a business broker (a type of realtor who helps buy and sell businesses). He or she can provide an objective viewpoint that could save you a lot of grief.

After you think for a while, << go back.

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Low Startup Cost

See if you can start your business on the side and keep your day job. You might be able to use a line of credit, or get some family or friends to help you get started.

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All The Freedom

You may be surprised how much freedom you will have. Most business owners work much longer hours than employees do.

In most large businesses there is a degree of insulation from the consquences of your actions. You still get a pay cheque even when you don't perform your best. When you are self-employed, your income is determined by your performance, so there is more pressure to perform.

It is not so easy to take vacations when you want to, or to finish work when you want to. If your paying client needs you, you have to be there. This is multiplied by the number of clients you have.

After you think for a while, << go back.

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Your Interests And Skills

Good idea! Start with your interests and skills. What you love to do and are good at may have business potential. If you can find a way to earn a living doing what you love to do, you are more likely to succeed.

Make a list of the things you like to do. Make another list of the things you are good at. Also make a list of what is important to you (your values). Use these as criteria when considering possible business opportunities.

One thing to beware of. Many people pick a business based around what they can do and have done in the past for an employer, and they end up buying or creating a job for themselves. Instead of one boss, they have several bosses - all their customers. Instead of being a business owner, they end up working in the business as an employee. For more on this topic, read The E Myth by Michael Gerber.

After you think for a while, << go back.

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All The Money You'll Make

It may be a little premature to dwell on the money at this point. Think instead about the following:

• What sort of product or service will you offer?

• Who would be your customers?

• What makes you different?

• Why would they want to buy from you?

• How would your business make the world a better place?

Also, since we are on the topic of money, most entrepreneurs are overly optimistic about the amount of money they will make. Take your most pessimistic estimate, and double it for the amount of money you'll need. Assume that it takes twice as long to pay back the loan.

After you think for a while, << go back.

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Meditate

You focus on your navel, and meditate on life, the universe and why you're not making any progress on your business. You apply all your skills in meditation that you learned from that meditation retreat you went to in some monastery some years ago.

Perhaps the universe is not on your side today. You gain no wonderful insights into how to move forwards with starting your own business.

After you think for a while, <<go back.

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Mission Statement

Good idea. It is important to have a sense of purpose. Start with your own personal mission, and then expand out to the mission of your business.

You should choose a business that fits your personal mission. Michael Gerber says that a business is an extension of the owner.

After you have your mission statement, << go back.

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Think Very Carefully

Good idea! Starting a business is not to be taken lightly. There are lots of things to think about. There are lots of things to plan for. They say that people don't plan so much as they fail to plan.

What do you think about?

• All the money I'll make.

• My navel.

• What are my interests and skills.

• All the freedom I'll have when I quit my job.

• The kind of business I want.

• What to do first.

After you finish thinking, << go back.