Are you thinking about starting your own business?

 

According to the US Census Bureau, more than 18 million people in the US are self-employed.  But the SBA reports that only about 44% of new businesses survive four years.  Why do most people take the leap into business ownership?  

Given the state of the current employment situation in our country, people who have lost their jobs often feel they would create a better situation for themselves if they were in control.  They are burned out on the restrictions and lack of freedom that most traditional jobs offer.  And the illusion of security, that exists when you work for someone else, is just that…an illusion.  There are no commitments in the “at will” employment community, and benefits that companies once considered a cornerstone of their cultures, are disappearing because of rising costs. Aside from freedom and control, probably the number one reason people decide to start their own business is because they offer a service, or they’ve invented a product that they’re passionate about.  And the only way they can engage in their craft is if they’re independent. Our economy and our psyche are totally ready for the courageous individuals who take the plunge to bring to market their unique take on a service or a new product that could potentially create more revenue to pump up our local larders.

How can they prepare themselves?  They may make the best product, or have the most innovative service and of course, they know their product or service inside out and backwards.  But if they don’t know the business basics, they will end of up part of the 56% that don’t make it beyond four years.  A must read for anyone contemplating starting their own business is The E-Myth Revisited.  Author Michael Gerber explores the difference between working in your business – what you do.  And working ON your business – how you do what you do.  This is the information that not enough of the 18 million take the time to check out, and contemplate, and incorporate into their business plans. 

Yes, you may have invented the next best thing to sliced bread, but if you don’t have systems to run your business…if you don’t have a marketing plan and a method for executing it…if you don’t have a clue how to sell (and the thought of selling makes you feel geechy…), recognize that if you want to be one of the elite 56%, you should first assemble a team of professionals who have the experience and passion to do the things you aren’t trained to do or interested in doing.  So you can continue to invent the next best thing…and the next…and the next.