37. Start Your Own Business

We have looked at the works of others on the internet and present to you some of the best we have found relating to this topic.

These articles will be rotated  to provide you with varying insights and viewpoints on the various steps in the program that hopefully will help you in your efforts.

In addition, we have looked through the offerings at Amazon.com and have selected a few books on this topic that may be of help and interest to you .  

Estinmates are that 40% of the people who are about to lose or have lost their jobs think about starting their own business.  But what are the questions you need to ask and where do you go to get the answers.

Fortunately, Ed King is coming to your rescue.  Here is an article about Mr. King and following it are nine clips from one of his Starting a Profitable Small Business introductory workshops.  The great thing is that he not only tells you the problems that will keep you from being profitable but he then gives you the solution for the problem.

May 1, 2006

BY CAROL CAIN

FREE PRESS COLUMNIST

With thousands across Michigan getting pink slips, facing the possibility of layoffs or deciding whether to accept a buyout offer, what's a person not yet ready to retire to do?

If you're like many, you might be looking at starting your own company.

The U.S. Small Business Administration reported that about 1.1 million businesses were created in 2003 and 2004 nationwide, while an equal number closed -- of a total of 24.7 million businesses. Michigan, meanwhile, had 46,674 new businesses start in those two years while 49,332 closed.

"While starting a business may be the dream of many, without proper investigation, they may become one of the eight out of ten that will fail within 5 years," says Edward King, director of small business services at Wayne State University.

King has been advising people on starting and growing their businesses for more than 25 years. He has authored books, including "Running a PROFITable Small Business" and "Starting a PROFITable Small Business." And he conducts seminars here and across the nation.

Before WSU, he worked as a $1,500-a-day consulting manager at Price Waterhouse & Co. in Detroit. And during his youth, he worked as a carny.

Though carnies are often viewed as hucksters, King says, his carny experience is nothing compared with the kind of fraud perpetrated by some entities taking advantage of people trying to start new businesses.

"Right now, we're seeing all these people getting laid off and getting big chunks of money that they suddenly have available, and we're seeing these scam artists trying to sell them business opportunities at 3 a.m." via TV advertorials "or at their local business expo," King says.

"I've heard for years that carnies are a bunch of crooks -- but a carny can only take as much money from you as you carry in your wallet," King says. "These hucksters are taking people's livelihoods.

"We've seen people buy a franchise for $100,000 and then go broke three years later."

Some due diligence beforehand can help avoid problems later.

During his years, King has developed a common-sense laundry list of points anyone thinking about small business ownership should consider before taking the plunge:

Are you self motivated? - No one is going to tell you to get up in the morning. ... You can sleep as long as you'd like. No one is going to force you to do bill collecting, file tax returns, make cold calls or to do anything else you hate. You must have willpower.

 Not all franchises are successful - For every McDonald's, there are dozens of franchises you haven't heard of and never will hear of. There's no free lunch. ... One complaint of franchisees is the amount of control the franchisor has over operations ... from pricing, operations, advertising, to getting his or her royalty.

Find a business that conforms to your talent - Everyone is a genius at certain things, but not at most things. You have to listen to your heart in determining the best business for you. And don't be pressured by some fast-talking franchise salesman. You must find a business you enjoy working in. Why go from a job you hate to a small business you hate? If you have no experience, go to work in the business you are interested in ... even if it is for a few months ... even if it is part-time. Ask yourself, "Do I really enjoy working here?"

 Make sure the business provides enough profit to pay yourself a reasonable salary and gives you a return on your investment.

You are making an investment of both your time and money. ... You need to get a return on both. Hire a CPA or knowledgeable consultant to run the numbers on your idea.

Understand that making money in a small business is more than just knowing the product or service.  You have to know about administration and paperwork. For example, the success of a restaurant has little to do with the quality of the food. No, you're not supposed to poison anyone, but atmosphere, service, pricing and so forth have more to do with success than your grandmother's secret recipe for goulash.

How good are you at making decisions? - Small business owners are required to make decisions constantly, often quickly, independently and under pressure.

King says one of the best reference books he has ever come across is the Small Business Sourcebook, published by Thomson Gale. It can be found at many local libraries and contains a comprehensive breakdown of many industries and thousands of companies.

Part 1 - An Introduction to the Workshop

Part 2 - Small Business Today

Part 3 - Why People Start Their Own Small Business

Part 4 - Problem 1: Owner's Personal Charicteristics

Part 5 - Problem 2: Poor Choice of Opportunity

Part 6 - Problem 3: Inadequate Startup Capital

Part 7 - Problems 3 to 7: Non-Critical Assets; Emotional Decisions; Attracting Customers; Professional Advice

Part 8 -Problem 8: Poor Legal Form 

Part 9 - Problems 9 & 10: Insufficient Experience; Insufficient Planning 

If you would like more information on how you can obtain the Starting a Profitable Small Business program, please go to here.

Can we help you with the process?

We have developed a companion workbook for the The Job Loss Prescription that can save you hours of work in getting getting started.  In one binder you will have the forms, tables, worksheets and budget outlines needed to keep track of your activities and make the decision making process a lot easier.  To quote some TV commercial, "We did it so you don't have to."

You can spend hours doing it on your own, but if you would like to have a copy of our workbook, the price is $39 which includes shipping and handling. 

And of course, we offer a no questions asked, money back guarantee.  If you find the workbook does not fit your needs, just send it back within 180 days for a complete refund.

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