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Venturing Forth:
A Three-Step Guide to Planning a Business
The Road to Self-Employment
The road to self-employment involves hard work and creativity. The way is risky, but it offers you the opportunity to be in control. Before you take off on this journey, you will need to ask yourself many questions about your business idea and your market. There are many places you can look for answers. The time you take now to plan and research your business idea will be time well spent. Lower your risks. Plan for success!
The First Step: Know Yourself
Are you the kind of person who can succeed in a small business? Not everyone can be an electrician, a nurse, a mechanic, a teacher — or a business owner.
Do You Have the Business Spirit?
Studies show successful business owners have certain personality characteristics. How do you measure up to these profiles?
A Successful Businessperson is:
- a doer and a planner
- an organized leader
- an optimistic problem-solver
- a responsible decision maker
- a flexible leader
- a persistant goal reacher
An Entrepreneur Has:
- self-discipline — the ability to work long hours at tasks both pleasant and tedious.
- self-determination — trust in her own judgment and inner wisdom.
- self-interest — the ability to act on her own behalf, for the good of the business.
- self-reward — pride in doing a job well, independent of others’ opinions.
The following statements fit the profile of someone with a business spirit. Check the statements you believe to be true. Think carefully before answering and be objective.
Who am I?
- I am a creative problem solver.
- I take initiative.
- I have high self-confidence.
- I work well alone.
- I am a competent risk-taker.
- I am a good decision-maker.
Why do I want to start a business?
- To be my own boss.
- To market my special skill or product.
- To create a job I like.
- To use my experience running someone else’s business to run my own.
- To make myself feel worthwhile.
- To be financially independent.
Why do I think I can succeed?
- I have business experience in sales, management, bookkeeping and/or public relations.
- I have a creative idea for my business.
- I am financially responsible.
- I can set and achieve specific goals.
- I expect to work long hours.
- I have sufficient assets for a year.
The Department of Labor and the Small Business Administration joined up to create a site, which offers free, useful resources for women entrepreneurs.
Check out: www.women-21.gov
The Second Step: Know Your Business
Before you get started, ask yourself:
What is my business?
Are you offering a product or a service or a combination? Can you explain your business to someone who knows nothing about what you are planning to sell?
How do I deal with:
Making and managing money? Making decisions, accepting responsibility, setting goals and priorities? Blancing personal and professional roles? Directing, supervising, hiring, and firing?Assessing, managing and taking the risks to keep your business alive and growing?
Where will I do business?
How much space does your business need? Do you need space to produce goods, display products, store inventory, and meet customers?
Can you operate out of your home? You will need to check your town’s zoning laws. If you rent your home, make sure your landlord knows what you are doing and agrees.
Who will own the business?
There are three basic forms of business organization.
Sole proprietorship - you are the only owner/operator. You have full responsibility. This is the most common form of business ownership. It is also the simplest way to begin and end.
Partnerships - two or more people share ownership.
Corporation - one or more stockholders own the buisness and share and control the profits. It is the the most complex kind of business to begin. A corporation is considered a separate person in the eyes of the law.
Additional Resources
Books
You should be able to find these books and many others on entrepreneurship and business at your local public library or bookstore. Books may also be for sale online, often at much discounted prices.
201 Great Ideas for Your Small Business: Revised and Updated Edition by Jane Applegate. Bloomberg, June 2002.
Bold Women, Big Ideas: Learning to Play the High-Risk Entrepreneurial Game by Kay Koplovitz, Peter Israel. Public Affairs, April 2002.
The Girl’s Guide to Starting Your Own Business by Caitlin Friedman, Kimberly Yorio. Harper Resource, January 2004.
Kitchen Table Entrepreneurs: How Eleven Women Escaped Poverty and Became Their Own Bosses by Martha Shirt & Anna S. Wadia. Westview Press, February 2004.
Minding Her Own Business: The Self-Employed Woman’s Guide to Taxes and Recordkeeping by Jan Nobel. Sphinx Publishing, January 2005.
The Successful Business Organizer by Rhonda Abrams. Planning Shop, January 2001.
Women’s Ventures, Women’s Visions: 29 Women Who Started Their Own Businesses by Shoshanna Alexander. Crossing Press, August 1997.
Organizations
You can access the following organizations by phone or internet. Your local public liberary should have computers available for public use.
Association for Enterprise Opportunity (AEO) holds an annual conference, which is the largest training and peer exchange program devoted to small businesses. Provides training and technical assistance AEO also publishes resource guides.
Call: (703) 841-7760
Web: www.microenterpriseowrks.org
National Association of Women Business Owners. A diverse organization of women business owners working to promote women’s economic growth and transform public policy and legislation. The group offers conferences, advocacy, and networking opportunities.
Call toll-free: 800-55-NAWBO (62926)
Web: www.nawbo.org
SCORE/ACE. Service Corps of Retired Executives and Active Corps of Executives, also sponsored by the Small Business Administration, provides experienced business people as free consultants.
To find a chapter in your area:
Call toll-free: 1-800-634-0245
Web: www.score.org
Small Business Administration (SBA), an independent federal agency, provides financial, procurement, management and technical assistance to women interested in starting new businesses. It has district offices all over the country, which provide counseling and low-cost training through their Business Development Program. The Business Information Center has research and planning facilities including how-to manuals, computer software and manuals.
To find an office in your area:
Call toll-free: 1-800-U-ASK-SBA (827-5722)
Web:www.sba.gov
Women Entrepreneurs, Inc. A group of businesswomen devoted to improving the American business climate for women. The site has many useful resources and networking ideas.
Call: 202- 785-0238
Web: www.we-inc.org
Tip sheet last updated 06/05
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