Is Entrepreneurship For You?
Given that today is April 15th for Corporations, it made sense for today’s lesson to center around the concept of entrepreneurship and how a business can be used to create, sustain and pass wealth. According to the book, One Minute Millionaire, there are roughly four ways to create wealth – investments, real estate, internet and business. That’s great news for the majority of us who lack the resources for investments and real estate and the technical skill required for internet or technological creations. No, most Americans will create wealth through sheer hard work, effort and determination, which does not require any prerequisite other than desire and will.
Education:
While entrepreneurship may not for everyone, many will choose this path to build wealth. As a result, this week will be dedicated to discussing the merits of entrepreneurship and how creating a business can lead to wealth for you and your family. There are many benefits to owning a business. One of the most important aspects of business ownership is understanding that your business is a TOOL. If used property, a business can help you achieve the following goals.
- Tax Shelter Tool
- Retirement Planning Tool
- Education Planning Tool
- Investment Tool
- Money Saving Tool
- Bill Payment Tool
- Family Planning Tool
- Job Creation Tool for Family Members
I will stop there, but I certainly hope that you get the picture. A business is a TOOL! It’s just like a hammer or wrench to a carpenter. An informed business owner can use this powerful TOOL in a transformational way that will forever change his or her life and the destiny of others. As a small business tax specialist, it is my primary job to teach my clients how to use their business to accomplish many of the above, enumerated goals. Let us examine if you have what it takes to start a business.
Is Entrepreneurship For You?
Starting your own business can be an exciting and rewarding experience. It can offer numerous advantages such as being your own boss, setting your own schedule and making a living doing something you enjoy. But, becoming a successful entrepreneur requires thorough planning, creativity and hard work.
Consider whether you have the following characteristics and skills commonly associated with successful entrepreneurs:
- Comfortable with taking risks: Being your own boss also means you’re the one making tough decisions. Entrepreneurship involves uncertainty. Do you avoid uncertainty in life at all costs? If yes, then entrepreneurship may not be the best fit for you. Do you enjoy the thrill of taking calculated risks? Then read on.
- Independent: Entrepreneurs have to make a lot of decisions on their own. If you find you can trust your instincts — and you’re not afraid of rejection every now and then — you could be on your way to being an entrepreneur.
- Persuasive: You may have the greatest idea in the world, but if you cannot persuade customers, employees and potential lenders or partners, you may find entrepreneurship to be challenging. If you enjoy public speaking, engage new people with ease and find you make compelling arguments grounded in facts, it’s likely you’re poised to make your idea succeed.
- Able to negotiate: As a small business owner, you will need to negotiate everything from leases to contract terms to rates. Polished negotiation skills will help you save money and keep your business running smoothly.
- Creative: Are you able to think of new ideas? Can you imagine new ways to solve problems? Entrepreneurs must be able to think creatively. If you have insights on how to take advantage of new opportunities, entrepreneurship may be a good fit.
- Supported by others: Before you start a business, it’s important to have a strong support system in place. You’ll be forced to make many important decisions, especially in the first months of opening your business. If you do not have a support network of people to help you, consider finding a business mentor. A business mentor is someone who is experienced, successful and willing to provide advice and guidance.
Resources:
SBA (Small Business Administration – www.sba.gov) – The U.S. Small Business Administration (SBA) was created in 1953 as an independent agency of the federal government to aid, counsel, assist and protect the interests of small business concerns, to preserve free competitive enterprise and to maintain and strengthen the overall economy of our nation
Important terms from this lesson:
|
Term |
Definition |
| Entrepreneurship | An individual who, rather than working as an employee, runs a small business and assumes all the risk and reward of a given business venture, idea, or good or service offered for sale. The entrepreneur is commonly seen as a business leader and innovator of new ideas and business processes |
Action Step: Answer the questions below to determine if you have what it takes to start a business.
20 Questions Before Starting
- Why am I starting a business?
- What kind of business do I want?
- Who is my ideal customer?
- What products or services will my business provide?
- Am I prepared to spend the time and money needed to get my business started?
- What differentiates my business idea and the products or services I will provide from others in the market?
- Where will my business be located?
- How many employees will I need?
- What types of suppliers do I need?
- How much money do I need to get started?
- Will I need to get a loan?
- How soon will it take before my products or services are available?
- How long do I have until I start making a profit?
- Who is my competition?
- How will I price my product compared to my competition?
- How will I set up the legal structure of my business?
- What taxes do I need to pay?
- What kind of insurance do I need?
- How will I manage my business?
- How will I advertise my business?
Education and Action 