Do You Have a Solid Business Plan?
A well thought-out business plan can make or break your chances of success, says Thomas W. Shinick, an adjunct professor of entrepreneurship and small business at Adelphi University. Such a plan should include a “SWOT” analysis (that’s strength, weakness, opportunities, and threats), budget, and P&L statement, Shinick says. “A good business plan serves as a tool to take to a bank or [Small Business Administration] office, and that can be the basis to get a loan for your business.”
Are You Financially Prepared?
Starting a business means lots of initial expenses and, most likely, little income for at least a few months. If you’re operating without a loan or investors, it’s important to have a nest egg, says Marcia Layton Turner, author of The Unofficial Guide to Starting a Small Business. She recommends a three-month cushion. “Many business owners are too optimistic when setting up their business plans. They assume they’ll have an income much sooner than they often do.” The more you have in the bank, the better your chances for long-term success.
Do You Have Self-Discipline?
When it comes to your work style, do you need someone cracking the whip and giving you direction, or can you manage yourself? “If you need a lot of direction, then starting from scratch may not be the best thing for you,” Layton Turner says.
Have You Done Your Homework?
This is a no-brainer: Investigate the competition, determine if the market can support another company, and research what potential clients will pay for your product or service. “Being a trend-spotter in a field is [necessary] for success,” says Richard Laermer, cohost of TLC’s Taking Care of Business and C.E.O. of RLM PR in New York. That’s especially true in the crowded event industry.
How Hard Are Your Willing to Work?
“Extremely hard” is the only acceptable answer here. “Owning a business, you really assume double the amount of hats,” says Leane Romeo, who took over as owner of Overland Entertainment last September after founder Jonathan Scharer passed away. “Because it’s not only overseeing your personnel, if you’re able to have a team, but you’ve got to manage them, work with clients, and produce events—as well as cultivate new business and think about what your calendar holds for next year. [You’re also] the main person in the organization that the accountants and financial advisors report to to stay on top of your financial health.”
Do You Have Support?
“Friends and family might resent the fact that you’re investing so much time and energy in the business and not on them,” Layton Turner says. If they’re not willing to support you, find people who are. “Be prepared to seek out entrepreneurial friends and colleagues,” says Kaleil Isaza Tuzman, author of The Entrepreneur’s Success Kit: A Five-Step Lesson Plan to Create and Grow Your Own Business.
Are You Comfortable Asking for Help?
“Entrepreneurs have a very interesting relationship with their own ego,” Tuzman says. “They have to believe in themselves, but at the same time they need to have humility, and be able to ask for help a lot.” His personal example: “I tend to be easily distracted by projects I find intellectually interesting but don’t make sense for my business model.” To compensate for that, Tuzman hired an expert to set up a checklist of items he needs to look for before accepting new projects.
Are You Passionate About This Field?
“You have to think about your passion for the business you’re in,” says Romeo. “Does it make you tick?” Don’t start a business simply because you got laid off, or want to be your own boss, or think it’s a great way to make money.”
How Do You Handle Failure?
Entrepreneurs must be able to absorb disappointment. “You’re going to have down days and difficult times,” Tuzman says. “You’ll take credit and blame, and some people have a difficult time with that. So you need to be resilient and knowledgeable about your own strengths and weaknesses.” Are you a better manager or better back-office person? Are you a creative dynamo or a pro at executing someone else’s vision? “The best entrepreneurs don’t have every quality that needs to be employed in their businesses, but some specific qualities, and then they find other ways to fill in their holes. They don’t try to be all things to all.phpects of the business.”
—Erika Rasmusson Janes
Posted 10.03.05
Related Story
Why Event Pros Are Starting Their Own Firms
A well thought-out business plan can make or break your chances of success, says Thomas W. Shinick, an adjunct professor of entrepreneurship and small business at Adelphi University. Such a plan should include a “SWOT” analysis (that’s strength, weakness, opportunities, and threats), budget, and P&L statement, Shinick says. “A good business plan serves as a tool to take to a bank or [Small Business Administration] office, and that can be the basis to get a loan for your business.”
Are You Financially Prepared?
Starting a business means lots of initial expenses and, most likely, little income for at least a few months. If you’re operating without a loan or investors, it’s important to have a nest egg, says Marcia Layton Turner, author of The Unofficial Guide to Starting a Small Business. She recommends a three-month cushion. “Many business owners are too optimistic when setting up their business plans. They assume they’ll have an income much sooner than they often do.” The more you have in the bank, the better your chances for long-term success.
Do You Have Self-Discipline?
When it comes to your work style, do you need someone cracking the whip and giving you direction, or can you manage yourself? “If you need a lot of direction, then starting from scratch may not be the best thing for you,” Layton Turner says.
Have You Done Your Homework?
This is a no-brainer: Investigate the competition, determine if the market can support another company, and research what potential clients will pay for your product or service. “Being a trend-spotter in a field is [necessary] for success,” says Richard Laermer, cohost of TLC’s Taking Care of Business and C.E.O. of RLM PR in New York. That’s especially true in the crowded event industry.
How Hard Are Your Willing to Work?
“Extremely hard” is the only acceptable answer here. “Owning a business, you really assume double the amount of hats,” says Leane Romeo, who took over as owner of Overland Entertainment last September after founder Jonathan Scharer passed away. “Because it’s not only overseeing your personnel, if you’re able to have a team, but you’ve got to manage them, work with clients, and produce events—as well as cultivate new business and think about what your calendar holds for next year. [You’re also] the main person in the organization that the accountants and financial advisors report to to stay on top of your financial health.”
Do You Have Support?
“Friends and family might resent the fact that you’re investing so much time and energy in the business and not on them,” Layton Turner says. If they’re not willing to support you, find people who are. “Be prepared to seek out entrepreneurial friends and colleagues,” says Kaleil Isaza Tuzman, author of The Entrepreneur’s Success Kit: A Five-Step Lesson Plan to Create and Grow Your Own Business.
Are You Comfortable Asking for Help?
“Entrepreneurs have a very interesting relationship with their own ego,” Tuzman says. “They have to believe in themselves, but at the same time they need to have humility, and be able to ask for help a lot.” His personal example: “I tend to be easily distracted by projects I find intellectually interesting but don’t make sense for my business model.” To compensate for that, Tuzman hired an expert to set up a checklist of items he needs to look for before accepting new projects.
Are You Passionate About This Field?
“You have to think about your passion for the business you’re in,” says Romeo. “Does it make you tick?” Don’t start a business simply because you got laid off, or want to be your own boss, or think it’s a great way to make money.”
How Do You Handle Failure?
Entrepreneurs must be able to absorb disappointment. “You’re going to have down days and difficult times,” Tuzman says. “You’ll take credit and blame, and some people have a difficult time with that. So you need to be resilient and knowledgeable about your own strengths and weaknesses.” Are you a better manager or better back-office person? Are you a creative dynamo or a pro at executing someone else’s vision? “The best entrepreneurs don’t have every quality that needs to be employed in their businesses, but some specific qualities, and then they find other ways to fill in their holes. They don’t try to be all things to all.phpects of the business.”
—Erika Rasmusson Janes
Posted 10.03.05
Related Story
Why Event Pros Are Starting Their Own Firms
