Category: Entrepreneurship

You’ve got the best idea for a new business — really, it’s mind-blowing. Since you feel trapped in your current job, this new idea is a sign, right? It’s time to cut ties with the nine-to-five and launch your own company. Or is it? Take the quiz below to find out if you’re ready to become an entrepreneur.

1. How do you feel about the idea of a formal business plan?

a. It sounds like something that will tie you down. You’re more of a freethinker — you like to take each challenge as it comes.

b. It sounds like something entrepreneurs do, and you’d be happy to start one if you knew how.

c. You’ve already got the summary written, and you’re fleshing out sections on marketing, products and cash flow.

2. How are you going to fund the business?

a. The idea is really, really, really mind-blowing. This business is going to fund itself.

b. You have some open balances on your personal credit card, equity in your home, or a decent enough FICO score to get a business loan.

c. You have money saved, are researching the possibility of investors, and have checked out AmericanExpress.com to see about a business account to cover travel and supply costs while you wait on the first invoice payments.

3. Do you have a marketing plan?

a. You’ve told all your friends and family, who love the idea. You’ve also started a Facebook page, and have a couple of fans.

b. You have some ideas about using Facebook, a blog and Twitter for online marketing. You know you can order free or low-cost business cards, but you need some help with the rest.

c. You’ve registered a domain name with GoDaddy.com, have started hyping the business on Facebook and Pinterest, and you’ve got a meeting with a SCORE coach to talk about other advertising opportunities.

4. How much work do you think the business will take?

a. Hopefully, less than 40 hours a week. You really want to get away from that nine to five.

b. It will probably take a bit of overtime at first, but after a few months, you hope to spend 40 hours or less a week working.

c. You’re planning on 60 or more hours a week the first year. After that, you’ll do what it takes to be successful, but you’re planning to make time for yourself and your family, as well.

5. How are you with paperwork?

a. You’ll hire someone to do that for you.

b. You’re good with details, but not sure what paperwork to start with.

c. It’s not your favorite thing, but you understand starting your business will require work in some areas you don’t enjoy in order to do something you do enjoy.

6. What’s your timeline for launching the business?

a. You’re putting in a resignation tomorrow, and expect the first customer by the weekend.

b. You’d really like to get started this year, but you’re afraid to leave the safety net of a full-time job.

c. You’ve been working on the details for awhile now, and you’re ready to let the world know about the upcoming business. You’ve got a personal financial plan and savings that will allow you to quit your job within 12 months, and you’ve created a business plan to match that pace.

So, are you ready to start your own company?

If you answered mostly A, you probably don’t have the best grasp of what it means to own your own business. It’s not a way out of work — in fact, you’ll probably work harder for yourself than you’ve ever worked for another boss. To be successful long-term, you need to plan before you launch. Only about half of small businesses make it past five years, according to the U.S. Small Business Administration, and those failures can be related to pitfalls such as poor planning and lack of knowledge about financing, record-keeping and pricing.

If you answered mostly B, you have the right attitude, but you aren’t quite ready. According to the National Mentoring Partnership, the role of mentoring in academic, life and professional success has been shown in surveys and through anecdotal evidence. Individuals with mentors are more likely to achieve success, so contact a local chapter of SCORE.org or a local office of the Small Business Association to get information about starting a business. Or speak with a successful entrepreneur willing to provide free advice.

If you answered mostly C, you’re well on your way already. You have a good idea of what it takes to start a business, and you’re at least halfway into the planning phase. Don’t give up on your goal — 28 million other people are doing it, Business Insider reports, and so can you. Remember to reach out to organizations such as the Small Business Association and SCORE.org. Although 70 percent of small businesses are owned and operated by just one person, that doesn’t mean you have to face every challenge alone.

Entrepreneurs who are interested in jumping into the restaurant business have a lot to look forward to. Running a restaurant can indeed be stressful, but the fast-paced lifestyle associated with the industry is just one of the reasons why so many people enjoy being a part of it.

In order to properly get a restaurant off the ground, however, there are a great deal of things that need to be taken into consideration. There’s a reason why 30% of restaurants fail within the first year they’re opened; a lack of proper planning can truly have detrimental effects.

Worrying over whether or not your restaurant is going to succeed won’t do you any favors. Instead, focus on what you can do to succeed. Here are just a few tips to help aspiring restaurateurs achieve their goals.

Choose Location Over Everything Else

There’s really no getting around how important it is to choose the right location when planning to open a restaurant. If you’re familiar with the term “haunted location,” you’re likely aware of the fact that some areas are simply not fit for certain types of restaurants. As a result, you’ll want to do as much research as possible into the area that you’re searching for a space. Get to know which parts of your city have restaurants with successful turnovers and which do not. Also, keep style of cuisine in mind and search for a location that will allow you to carve a unique niche in the surrounding neighborhood.

Don’t Skimp on Initial Supplies

One of the most difficult aspects of opening a restaurant is being able to afford to outfit it with supplies. Between kitchen equipment, dining room furniture and everything in between, there’s no denying the fact that opening a restaurant can be an expensive endeavor. Skimping on initial supplies, however, will do you very little good and could even potentially derail your restaurant during the beginning stages. It’s worth mentioning that many people forget about the little things when planning a restaurant opening; proper cooking utensils, guest checks, table linens etc. Make a list of everything you think you need and allow others with experience to go over it with a fine-toothed comb for you.

Start With a Test Menu 

A common mistake made by first-time restaurateurs is throwing all of their money towards food inventory right off the bat. It would make sense to the think that a large menu would serve to bring in more costumers, but there’s a huge chance that you’ll be letting a great deal of food go to waste in this scenario, as spoilage occurs quicker than most people would like to admit. Work with your chef to draft a small, limited test menu to help get the ball rolling. This will not only drum up interest for your restaurant, but will allow you to keep food costs to an absolute minimum to begin with.

Embarking upon a career as a restaurateur can be frightening, but if you make the right moves, you’ll find that it can be an excellent business venture.

Article contributed by Jenna Smith

Article Contributed by Lori Wagoner

How expensive is it to start a business?

Pop that question up and you’ll get a ton of answers. Most of these answers are either a reflection of what entrepreneurs already did or what they believe is the right thing to do.

However, not everyone starts off right. Some businesses make do with whatever they do and most others will fail. If you are reading this, it’s clear that you want to start or run your business to profit from it. For that to happen, you’ll need to overhaul your entrepreneurial mindset.

Here’s how:

Guts and intent come first. Money is secondary.

Peep into the world of business and you’d think that it’s the money that matters. The need for capital, the run for VC money, the applications for business loans, the thirst to raise cash from any means possible, and the sacrifices some entrepreneurs make to find monetary support to run their business.

Surprisingly, it’s not necessary.

For just as many accounts of these “cash runs” that entrepreneurs do, there are many enterprising businesses that start for less than $100, according to Chris Guillebeau who wrote the book The $100 Startup: Fire Your Boss, Do What You Love, and Work Better to Live More. Meanwhile, the debate whether you should stake your own money or raise cash will rage on.

The truth is that you need guts, confidence in yourself, the ability to sell, a tendency to take action no matter what, and a strong intent to get started in business.

Tip: Raise a business first; money follows. You’ll find a way to make it all happen.

Get a website up on the cheap

Don’t ever believe it when you read “You don’t even need a website” anywhere.

You do.

Doing business without a website is like going to a formal gathering dressed on the top (and with a tie) but without your shoes on – yes, it’s just as embarrassing when you sit across a client and realize that you don’t have a proper functioning website.

Today, it doesn’t take much to put up a website. This is the age of Instant Domain Search – register a name you like (finding one that’s available is a bit harder, though). Picking the right web host is one leap you shouldn’t make before looking – compare hosting provider options at Who Is Hosting This or CNET and go for one you think is best for you.

Unless you have an online retail model, it’s safe to choose WordPress as your CMS (you can’t go wrong with something more than 55% of websites in the world run) and buy a theme you like from ThemeForest.net. Get your logo designed, choose your brand colors, put a site content strategy in place, and start adding stuff. Now that your site is ready for clients, off you go selling.

Tip: For a website today, there are no excuses. Start with an inexpensive, but functional and beautifully website. You can tweak, redesign, and change it later.

Marketing collateral, branding, infrastructure and equipment

Jason Fried, in his book Rework, states, 

“In most cases, getting a fancy office is more for the entrepreneurial ego than for necessity.”

You can’t help but agree. What you certainly don’t need, especially when you are starting out, is a swanky office in an expensive location (unless you are in retail). You don’t need to hire employees right away, and you’ll certainly not have too many bills to pay.

Depending on where you live, you might have some basic setup expenditure like approvals and licenses as these are necessary. Apart from the basics, no money every goes out until you make enough.

Further, the best marketing tool you have at your disposal is you. Master the art of selling and you’ll find that you’ll never need to make brochures, flex banners, and expense-heavy advertisements when you are in beginning stages of your business.

Tip: Bootstrap like your life depends on it. If you have to spend, do it when you must or when you make so much money that it won’t matter then. 

I won’t care what happens. I got nothing to lose.

Since all you do is to run with an idea and not spend too much, you get into the “I don’t care” mindset – and that’s pure power. Dan Schawbel, a contributor for Forbes.com, interviewed Ryan Blair, the CEO and founder of Visalus Sciences and author of Nothing to Lose, Everything to Gain.

Ryan reveals that “adaptation is the key to survival.” He says, “To be an entrepreneur, you got to have fighting instincts,” and also adds that he “hates writing business plans.” In his opinion, “the business plan is the one built from a business that’s already up and running.”

Think about it: you won’t even hesitate when you have to pivot, you won’t be debt-ridden when your business fails, if ever. You won’t care if the world doesn’t appreciate your idea: if it works, you are a genius. If it doesn’t, you are one of those smart opportunists who dropped a business and started another one.

You exude power and confidence. You come in from the trenches. You radiate supreme confidence when you sit across customers and face them. When you are in this mode while doing business, you become invincible, unstoppable, and a rolling juggernaut that gathers business lessons along the way.

Go with “Worth Pricing”

It’s time to disrupt and justify.

Most of the markets you might enter into end up smothering in price wars and baseless debasement of product value (include services too). In possibly every market niche, you’ll find competition slugging price arrows to snatch customers away from you.

Traditional business literature teaches you to price according to cost of goods with margins slapped on it. You’d also price based on intrinsic value of products, or based on your time for your services.

Try something new: price according to what you are worth, or what the product is really worth, or what your services can do for your clients.

Here’s the biggest marketing secret: you’ll find customers at every price point. All customers, by the way, are demanding. So, why price low?

If you find yourself nodding in agreement because you agree, it’s good. If you realize that you did exactly that, you are on the right track. If you don’t agree, do let me know why in the comments!

Article Contributed by Lori Wagoner

Lori Wagoner is an independent content strategist who gives online marketing advice to small businesses. Lori has blogged at Tweak Your Biz, The Social Media Hat and many other business and tech blogs. You can reach her @LoriDWagoner on Twitter.

More than 23 million small businesses are in operation, notes the Small Business Administration. The American economy relies on small businesses — two-thirds of all jobs added since the 1970s have come from small businesses. Many college students pursue their degree with hopes of one day running a business, but there’s no rule that says you can’t get a jump start on becoming an entrepreneur. A college environment offers plenty of resources and opportunities for a young entrepreneur. Feeling ambitious? Here are five reasons why your college years are a great time to chase your dreams.

1. Resume Building

Even if your business fails or doesn’t meet expectations, your go-getter spirit will look great on your resume, Entrepreneur says. Maybe you’ll keep running your company after college, or maybe you’ll move on to something else. Either way, you will have real-world evidence of your business acumen and entrepreneurial drive.

2. Support System

A small business is no small undertaking. A busy college life might not seem conducive to these demands, but students can actually leverage their college status in highly beneficial ways. For example, a small business could be developed as part of a school project or extracurricular activity. If you’re taking classes on developing business models, petition your professor to let you create a real business model for your own enterprise as part of the class. Similarly, develop a sales strategy in a sales and marketing class or build a website as part of computer programming curriculum.

Opportunities aren’t restricted to the classroom. Let your professors and advisors know about your business endeavors. They can point you to available resources at school, including organizations, associations, other experts, and even students with whom you can collaborate. It’s likely you’ll face tough questions as you launch your business, from choosing the right strategy to covering all your legal bases. Since you’re in an academic environment, take advantage of all your resources.

3. Large Network

Many entrepreneurs end up realizing that they can’t do everything on their own. When you need partners or other associates, check out your college student body. A university presents you with a large social network through which you can make strong connections. You can even crowdsource to find the perfect associates. Online schools such as Penn Foster make it easy to connect with other students through social media that provides support and easy access to like-minded individuals.

4. Monetary Assistance

It’s not impossible for college students to make a decent chunk of change off of their entrepreneurial efforts if everything runs smoothly. If you’re able to turn profits early on, your small business could help you pay off school-related debt and cover other costs of going to school.

5. Learning Experience

Launching a small business comes with a certain amount of risk. Even with all of the support a college can provide, there’s no guarantee things will work out just as you plan. But that’s no reason not to swing for the fences. Whether your business flourishes or flops, you’ll have valuable, unmatched experience. As you start your next endeavor, whether it’s a small business or a position at another company, you’ll have substantial experience that will make you a better worker and leader.

To help you engage in impactful charitable programs that builds your brand and your business, here are some tips from philanthropist Joelle O’Reilly-Hyland for your business to engage in charitable actions that is most relevant.

Consumers nowadays are savvier with higher expectations of companies due to presence of tools that give them greater access to company information. Instead of merely doing “goodwashing” (doing a few virtuous things to bolster their reputation), consumers now expect companies to start having more real impact on society.

Community Relevance

It is important to support the organizations and causes that are relevant to your local community. For example, women education is a decent cause for companies to lend their support to. According to philanthropist Joelle O’Reilly-Hyland, without a decent education, it’s unlikely that women will enter leadership positions, contributing to another gender equality gap in the United States. Women tended to work the same hours, and just as hard as men do. Yet, women aren’t fairly compensated for the work they do.

Hence, by supporting education for women, companies can demonstrate to consumers their commitment to reducing income inequality for women.

Target Relevance: Examples from Joelle O’Reilly-Hyland

Your philanthropic efforts should resonate with your target audience. By supporting the things they care about, you gain their attention, respect, and trust. So research the events that trigger your targets’ charitable donations and the appeals that motivate their participation, and then align yourself with them.

If your target market cares deeply about child rights, then make it a point to support programs an donations that contribute towards the protection of rights for children. Philanthropist Joelle O’Reilly-Hyland has visited exhibitions which aimed to raise awareness of child marriage in developing countries. Joelle O’Reilly-Hyland believed that we can do more to advocate for change within these countries. Specifically, companies and social workers should do all they can to ensure that girls in these countries obtain a full and decent education, so they can speak out on their own behalf and fight back against the oppression placed upon them by an early marriage.

Charitable giving and actions have a tangible impact on company branding. By supporting the things your target demographic cares about, you gain their attention, respect, and trust, as demonstrated by Joelle O’Reilly-Hyland’s practices.

About Joelle O’Reilly-Hyland

Joelle O’Reilly-Hyland is a philanthropist with a big heart. And, in order to maximize her ability to provide aid, Joelle O’Reilly Hyland is partnering with the very best non-profits. Currently, her main interest is in Educate Girls Globally (EGG), a non-profit that has helped educate girls in India and is looking to expand as she and the founders believe the model will work anywhere, no matter how difficult the environment. As EGG looks to branch out into Africa, Joelle O’Reilly-Hyland, has forged an alliance with Africare, which was founded by former Peace Corps members in 1970.

Africare are operational on the ground in 27 countries throughout Africa. Their focus is on hunger but they were looking for an educational component to their work. Women are typically the farmers in Africa, and women who can read make better farmers, not to mention mentors to future generations as the family educators. The results for educating women are exponential and expand well beyond learning metrics.