Starting a Business from Scratch

Entrepreneurs are a unique breed. They are people who have decided to buck the status quo and quit working for somebody else. Most have acquired some type of marketable skill, and have come to believe that their bosses are exploiting their skills and making most of the dough. Rarely is this the case, but it’s a common perception. So they bravely quit their jobs and optimistically announce their new business idea to family and friends. This is a frail first phase, and human nature being what it is, family and friends, with the best of intentions, may knock down the dream before it gets off the ground.

If the would-be entrepreneur can handle the probable initial negativity, she will bravely go out and start her own business. She is confident of her skills, but she has no idea how to handle the other myriad aspects of running a business. She will need to learn about advertising, marketing, hiring staff, understanding contracts, legal considerations etc. Many business startups ignore the single most important first step, and that is to find a paying customer. A few years ago, a friend of mine came up with an original but unproven business idea, and he was determined to hire an accountant and a lawyer before doing anything else. He essentially had decided to take on two major expenses without ever proving that his business concept was viable. He didn’t understand the most critical first step in starting a business – finding a customer. If you can find someone who is willing to pay you for your skills, you are well on your way – the other challenges of running a business are important but secondary.

Another important aspect of succeeding in business is to be unafraid to fail. I would venture to say that it is absolutely impossible to run a successful business without first experiencing some failure. Failure is a bonafide, essential component of success. Without failure there is no way to learn the right way. Scientists, inventors and athletes are all well aware of this. If you are strong enough to endure failure, sooner or later you will succeed. Don’t be afraid to copy others who are successful.

Something to be wary of is the temptation of the get-rich-quick fantasy. I don’t know how many MLM’s I have been lured into, believing the righteous promoters (who usually have no money to quantify their claims) who will promise the world. If you become wealthy in MLM, you’re one in a million, and those aren’t good odds.

But if you have a skill that’s in demand, and a relentless urge to become your own boss, there is nothing more rewarding than running your own business. It is deeply satisfying if you can get past the initial hurdles.

A great way to start is to launch a home-based business, but don’t quit your day job right away. With a home-based business you can get started right away without spending a fortune. You likely already own a telephone and a computer, maybe a fax machine as well. Try to avoid selling products to begin with, sell your skills. That way you eliminate the cost of inventory, which can overburden your business in very short order, particularly if you find that you can’t sell the products you’ve bought. Add products to the mix (cautiously) as your SERVICE business takes off. Control your spontaneous tendencies, and carefully think through each step as you grow your business.

Next week we’ll take a closer look at some of the finer points of running a small business, and we’ll examine the role of technology and its relevance in the small business environment.