Before you take the leap into starting your own business, ask yourself these four questions:

o Is it really a better personal career option?

o What do I need to know to decide?

o How can I prepare?

or How do I start?

In this article, I’ll help you find answers to those key questions by relating them to my own experience as a corporate manager and entrepreneur, as well as what I’ve learned in more than 15 years of consulting owner-managers.

Do you really want to have your own business? The advantages are attractive, but don’t forget the disadvantages that are an inevitable part of the choice.

Advantage

o Unlimited opportunity

o Freedom, independence

o Continuous challenge, variety

o Your choice of management style

o Responsible and involved in the entire business

o If the business is doing well, you are doing well

Disadvantages

o Still limits what you can do or control

o Many people now depend on you

o Requires skills and knowledge you probably don’t have

o Higher risk, less secure financial future

o You cannot drop it off at the office

The next step is to assess whether you are the Entrepreneur type:

o Personal expectations and preferences: lifestyle, work environment, rewards, method of compensation.

o Personal strengths and weaknesses?

o Education, training, networking?

o Characteristics of an entrepreneur?

o Independent, confident, persistent, action-oriented, risk taker. Passionate, leader, achiever, communicator.

o Solid foundation: family, physical and financial health?

o Additional resources available: partners, suppliers, key customers, employees?

If you are still determined to continue, consider which business option best suits your business ambitions:

o Home based business, multilevel marketing

o Independent Contractor – Commercial or Professional

o Sales Agent – insurance, real estate, financial services

o Franchisee: retail, fast food, business services

o Independent business – local, national, global

o Retail, hospitality, food services, consumer services

o Manufacturer, distributor, service company

o Internet business or technology

o Entrepreneurial role in a corporate environment

Once those decisions are made, the next question is: What is my business opportunity?

Your selection will be based on your personal knowledge, experience and contacts:

o Opportunities that match my capabilities?

o Market need?

o Current solutions available?

o What is my proposed solution?

o Confirmed by market test, customer feedback?

o How do I make it profitable?

You are now ready to document a business plan.

Why do I need a Business Plan?

o Develop and document your business concept, strategies, action plans and projected financial results as a guide for management.

o Provide the necessary information for potential funding sources.

o To attract new investors, strategic partners or key employees.

When do I need a Business Plan?

o Start-up of new businesses

o Launch a new product/service

o Enter a new market

o Strategic review and performance diagnosis of an existing business

o Prepare a business for sale, merger, acquisition or succession

Business planning process and checklist:

o Assess personal goals

o Identify the Business Opportunity

o Define your concept and business model

o Carry out sufficient market research

o Develop the Strategic Plan

o Define Operational Plans

o Prepare Financial Projections.

Business Plan – Recommended Index

1. Executive Summary

2. Concept and business opportunity

3. Mission, Vision, Values

4. Market analysis

5. Competition

6. Strategic plan

7. Management Team and Organization Plan

8. Offer of products and services

9. Marketing and Sales Plan

10. Plan of operations

11. Risk analysis

12.Financial plan

13. Appendices

With all of that preparation and analysis complete, you’re ready to consider financing your business plan. There are many alternatives available, but you’ll likely go through these funding sources as you move forward with your plan:

o Personal investment, cold cash

o “Sweat Equity” – time and effort, not paid

o “I love money” – willing friends and family

o Bank financing – term loans, line of credit

o Angel investors – passive, active, added value

o Government financing, special loans, grants

o Venture capital – private equity

o IPO – Initial Public Offering

Is Entrepreneurship the Right Career Choice for You? These questions and approaches should help you decide and develop a plan for success. Good luck! That helps too.

Chatterson’s

DirectTech Solutions c 2007