I encourage GRS readers to pursue their dreams. I also extol the virtues of entrepreneurship. Mike believes he’s ready to take both pieces of advice to heart. He wants to leave his job, set out on his own, and start a new business. But he’s worried. He wonders if Get Rich Slowly readers can offer any advice. Here’s his story:
I’ve been at the same job since I graduated from college nearly ten years ago. Lately I’ve lost the passion for what I do and am aching for something completely different. I want to start a retail shop.
Two problems:
- I’m paid well here, so I’m going to have to figure out how to make this transition in a way that won’t hurt the family’s finances.
- I don’t have any real business training, and the thought of keeping books for the business gives me stomach pains. But there are resources out there to help with the logistical side of running a (retail) business, and I know where I need help and will pay for it (accounting, interior decorator, etc.).
The bigger issues, I think, are how to get from where I am now — sitting behind a desk doing the job I’ve been doing for 10 years — and getting the momentum going to really make this happen (and to not fail at it, leaving me jobless and penniless).
Also, I worry about some of the things that may not be covered in standard business-type books, like the best ways to look for employees and how to deal with them on a employer-employee level. Or ways to balance family and work when you’re putting in six 12-hour days a week trying to build your business. Or a good step-by-step timeline of how to go about hunting for business space, gathering financing, etc., all while continuing to work your regular day job.
Are there any good resources — be they blogs or books — that can help with the problems that don’t come down as much to tried-and-true business rules, but more to the everyday human side of trying to build a new business?
I think all new business owners wrestle with these questions. Since quitting my day job to blog full time, I’ve gradually come to realize that Get Rich Slowly isn’t just a hobby — it’s a business. I just hired my first contract employee yesterday, and although he’s a friend I trust, the process was still a little scary because it’s so new.
Based on my (very limited) experience, a lot of this stuff can only be learned through the doing. Mike will make mistakes along the way, but I don’t think that should dissuade him. Mistakes are frustrating, but they’re also learning opportunities. Here are some other tips for Mike as he considers this endeavor:
- Be sure you have adequate savings. Build a buffer in addition to your normal emergency fund so that you have a cushion to fall back on if times get tough.
- Tap into local resources. Check with the Small Business Administration to see if they offer classes or seminars in your area. Better yet, visit a community college. They’ll offer business classes, and many provide additional resources to small business owners.
- Seek help from your social network. Do you know any friends with small businesses? Do you have a working relationship with a lawyer and accountant? Is there somebody in your community who can act as a mentor?
I grew up in a small business culture. My father was a serial entrepreneur, and so I got to see first-hand his failures and successes. One thing I learned from him is to proceed cautiously and deliberately. Know your business, and seek to be the best at what you do. Don’t try to be the biggest — try to be the best.
Many of you have experience with small businesses — either as owners or as employees. Can you offer Mike any advice? What should he consider as he leaves his job and strikes out on his own? How can he learn to handle the human side of owning a business?
This article is about Career, Choices, Entrepreneurship
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One book I really enjoyed on this subject is called “Starting From Scratch” by Wes Moss.
It mostly consists of a bunch of exposes of people who quit their careers to reinvent themselves as entrepreneurs. It doesn’t offer much concrete advice but I found a lot of the stories inspiring if you’re interested in dropping everything and striking out on your own.
I just checked Amazon and it appears that new edition is coming out in September. They didn’t have a listing for the edition I read a couple years back. Weird.
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Out of all my varied small business experiences (on and off line) their is one important point that you may want to bear in mind before starting your small business
“Always start a business that you are either passionate about or love doing,” anything less will be like going to work everyday.
This mistake cost me over $20.000 when I started a business that wasn’t my main passion, or interest and I hated it
Anyone who is brave enough to take the plunge and start their own business, especially if you already have a good income and family to support deserves a medal. In your particular case why not start your business part time (around work) until you find your footing and a future that can provide for you and your family adequately. Find a niche or offer a product or service that solves people’s problems and that offers long term value.
Definitely take on board everyone’s comments and suggestion but ultimately listen to yourself as you know your own strength and weaknesses.
Try some inspiration material from successful business people like Robert Kiyosaki’s Rich Dad Poor Dad; this is a great story with even better lessons for you to take on board. Stephen Covey’s Seven Habits of Highly Effective People is also a great read that can help you in understanding yourself and also offers great insights into managing people.
All these and more can be found at any good book store online with the option to download and listen making it easier to get through the material if you don’t like reading.
Hope this helps you out some and wishing you every success in your new business venture
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Here’s the most important question that you need to answer going INTO a business:
Who are you going to sell it to when you finally decide to get out?
If your answer is: “whoever wants to buy my retail store” then I suggest you don’t even start, because you will just have a low-paying job. Retail as a business sucks (!): too many overheads; your balls are tied up in leases and inventory; and you’ll be working 60 – 80 hr workweeks for the rest of your life.
BUT, if you can honestly & passionately answer with something like: “well, I have a unique niche/vision, so I’ll be opening my first store in 2008; 3 more in 2010 and 50 across the Eastern seaboard by 2015, then I’ll IPO or sell to Sears” you just MAY have an opportunity worth pursuing …
… in which case, you need to have a financial buffer, then get out and Just Do It (because you will NEVER start it whilst still working full-time … just too many roadblocks in your way).
BTW: the one and only “must read” book … The E-Myth Revisited by Michael Gerber. Believe me, it helped make me $7 Mill. in 7 years!
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I worked for several years as a restaurant manager knowing that one of these days I would open my own place. I was hesitant to leave my steady paying job because the last time I left a management job to pursue an opportunity, it failed. My supportive wife who is also in the business encouraged me to leave. It was the best decision ever. For Mike, my advice is:
1. If you don’t take risks in life, then you never know what could have been. Take the chance and do what you love to do.
2. Once you have chosen the type of business, focus on something you know you will be good at or provide better such as the quality of product or service.
3. Take time to write a business plan. Too many people skip this part thinking an idea and money is all you need. A business plan will put you on track and allows you to be very focused. There are books you can buy on business plan writing, but I recommend visiting a business centre in your city.
4. Network with others who are in the business. Use your network to also connect you with the necessary individuals (i.e. accountants, bankers, lawyers, realtors).
5. Be financially prepared. Not only to have enough money to support your family, but to be able to cover any losses you forecast in the first year.
One of the most important advice, be prepared for failure. No one wants this, but you have to understand that it can happen to anyone. Failures lead to learning opportunities. Even if you fail, it doesn’t mean you give up. You have to place failure behind you, move on and pick yourself up again and try again. I have been there and sacrificed 1 1/2 years of planning for a restaurant in the US only to realize my partnership was going to fail. It didn’t stop us, I went back to work for another 2 years and now I am on track on owning my own restaurant.
Follow your dream.
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One piece of advice after our own two-years of successful (and sometimes painful) restaurant start-up (now entering our first expansion phase):
Work on building a business that will not have to depend on your constant presence! Otherwise you’ll end up OWNING a job. That would be horrible.
Think of yourself as someone who will be providing worthwhile employment to others, by working on developing an excellent business.
Make excellence your goal, in everything that you do, and instill a culture of excellence among your people.
You are going to be a provider, instead of provided for.
Think of yourself as the captain of a ship. Your job is to provide the vision, direction, leadership and wisdom for the ship to reach the destination you have set for it.
To find out HOW to do all the above, get The E-Myth Revisited by Michael Gerber. My #1 business book recommendation. Also, visit e-myth.com.
(I have no affiliation with E-Myth)
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I’ve gotten quite a bit of business from a post I wrote around the same time. Seems that no matter how much you read on the topic, it always helps to have someone that you can call and talk to directly, and I’ve seen my share of both brilliant plans, as well as half-baked ideas that just needed some refining that have proven to be successful.
http://letsblogmoney.com/2008/06/16/starting-your-own-business-take-your-time-and-do-it-correctly/
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You know, after going through some entrepreneurial resources and sites, I came across the Spirus Group (http://www.spirusgroup.com/), and they seem to have found a solution to many of the classic problems faced by would-be entrepreneurs. Specifically, they help you do all the initial development work for your company while you are still at your current job (business plan, hiring, real estate planning, suppliers, etc.) Seems like the right approach to give a business idea a chance to succeed while keeping the risk relatively low. It looks like they can also help with fundraising and a few other things. Worth checking out.
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With regards to suggestion about the Spirus Group by Young, with all due respect, I wish to make a statement:
I strongly disagree that a budding entrepreneur should delegate the very necessary learning curve of struggling through the challenges that Spirus would claim to solve.
These are not issues that need to be solved by another party or shortcutted through!
These are the essentials that a business owner must master, before delegating the work to his or her employees.
If you do not have a desire or will to learn the various aspects of the art and science of entrepreneurship (again I refer you to Michael Gerbers THE E-MYTH for specifics), then you should not start your own business.
You must go through the darkness before you can make it to the light.
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I’m in the same boat as the guy above.
I think the info given will be a good guide in general although I still have a lot more research to do.
The comments posted are mostly useful making this blog a good starting point for more research.
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In 1975 I started a business without realizing I was -I took care of friends’ and neighbors’ pets and homes while they were away. Today, I can turn down business if I want to because I am in such demand.
Aside from the financial and legal advice given in this article and in the comments above, my only suggestion is SERVICE SERVICE SERVICE.
Advertising can only go so far. For me, it’s word of mouth that gets me the business.
Go the extra mile, even if you know it’s not worth it. Volunteer (while wearing a company tee shirt). Give a gift certificate for your product/services to local charity events. And while Suze Orman would disagree with me, during your start-up cut your fee to get the job so your name is out there AND you gain experience.
Keep track of your expenses and income. Get a good accountant.
Most importantly, ENJOY IT.
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Start your business while you’re still employed!
How long can most people live without money? Not long. And it may be a long time before your new business actually makes any profits. Being employed while you’re starting a business means money in your pocket while you’re going through the starting a business process.
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