The following is an article by Denver Brown is a Business Executive Coach, Entrepreneur and the author of the book The Turning Point…How the 8 Best Practices Changed My Life.
When I first heard the statement, “profits are always better than wages”, expressed by renowned motivational speaker Jim Rhone. I thought, wow, if only I was the one saying that. Jim Rhone further went on to say,” wages makes you a living but profits makes you a fortune”. Oh, wasn’t he right!
I made the decision to become an entrepreneur nine and a half years ago and for me, I have no regrets. It was the best decision I have ever made. I needed to have more flexibility, make more money, spend more time with my family, have more fun and create long-term security. I knew that I would not be able to do all these things in my “normal nine to five” job. So, it was time for me to switch!
Now, I am enjoying the time of my life! I am living the dream, fulfilling my passion! Oh, I am glad I made the decision to become an entrepreneur.
The decision to become an entrepreneur is an act of courage, a matter of risk taking, and an act of self belief. Many people become discourage or less confident in their abilities to own and operate a successful business, especially when all the negative, but true statistics are thrown at them. Statistics which suggest that 50-70 percent of entrepreneurial startups fail in the first five years. Ninety percent of all new businesses do not survive beyond the 10th year. And only three out of 100 companies are still prosperous after 40 years. Well, if you allow this to stop you then anything will stop you! You need to start believing in yourself and start trusting God!
My advice to any young budding entrepreneur is:
1. Know what kind of business you are suited for?
- What are your hobbies?
- What is your experience?
- What are your resources?
2. What are the nature, structure and directions for the economy and the demand structure for various products/services you are competent to supply?
Remember, no business can succeed unless the POTENTIAL for its success first exists. And step one in the creation of the potential is Planning and Research.
3. Planning
- What kind of business do you want to get into? Example products or services or a combination.
- What kinds of business can you get into? For instance, the type of business.
- What are your expectations? i.e. What, when, how, amount, inputs and consequences of your decision.
4. What if you want Income or Capital Gains?
1. Income meaning, long-term planning, re-investment or profit for growth.
Or
2. Capital Gains meaning short-term operation with plans for locating a suitable buyer at the right time.
4. Planning for Financing
- Develop a good relationship with your bank.
- Be able to do intricate business calculations and ratio analyses. Example ROI (Return on investment, IRR (Internal rate of return), etc.
5. Type of Ownership
Sole proprietorship, partnership, limited liability company (private or public). Which is best suited for you?
6. Location:
Most of the time, this can be done through a survey, so make sure you do one.
7. Planning for Personnel:
One of the reasons why many entrepreneurs fail is the lack of having a proper personnel policy. Having very good personnel in your business is important because it will allow you to delegate to competent staff without you having to worry.
8. Planning Market Strategy:
Marketing is a key function of a business. If there is to be profit, then the product must be moved. However, in order to exchange your product for money, the consumer must be made aware of its existence.
“Change or die!” What will it be for you today? You decide! As for me, I am glad I started early, living my dream!
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