Many Entrepreneurs Fail Before Taking the First Step Towards Business Ownership

An overwhelming number of entrepreneurs begin their business endeavors with nothing more than a good idea. However, there is much more to establishing and operating a successful company and it should start with a plan. I have encountered several future business owners who do indeed have a stellar idea but lack the time, focus, fearlessness, or planning required to take a company from the start-up phase to a point of success beyond stagnancy. Starting and growing a successful business demands patience, tenacity, and resilience to deal with day-to-day operations that will inevitably be laced with setbacks and failures. It is the accomplished business owners and managers who plan for these dilemmas and the expenses associated with them in a professionally written business plan created during the early stages of company development. An admirable idea is indeed necessary in the creation of a unique and distinct company, but there comes a point when that idea must be converted into well-defined action that takes into account the pros and cons of daily ventures.

The number one characteristic all entrepreneurs should possess is undying fearlessness. As an owner there will be times when you desire certain attributes for your company. It is solely the responsibility of ownership and management to negotiate for these desires, and without the steadfastness required to acquire what you desire the possibility of accomplishing your goals is greatly reduced. Withdrawing when negotiations reach objectionable areas only decreases the eventuality of achieving success in that particular venture. Owners must be relentless when striving for the success of their companies. Every negotiation will not be easily overcome but all negotiations possess the potential for successful outcomes. The fear of success and what it entails hinders many business owners. Do not let the fear of achieving your predetermined goals be the setback that prevents your company from becoming what you envisioned when you dreamed of its existence.

In addition to bold and steadfast action related to daily endeavors of a business, entrepreneurs must be focused on driving their companies from start-up to prosperity in a predetermined length of time. Fearlessness and focus go hand in hand when it comes to advancing a company towards maximum profits, and if substantial earnings is not the dominating factor for a company it will be short-lived or forever stagnant. Time, effort and money is paramount in the attainment of wealth for any entrepreneur. Without accepting these aspects of business no company will succeed. Furthermore, a plan for success enables business owners with the reinforcement and concentration to help them remain committed in their quests for growth.

This is how a well written business plan enables entrepreneurs at the start of the business ownership journey. A well written plan not only provides a means of guidance as to how a company will reach its destiny, but it accommodates owners and managers with a sense of security in spite of hardships encountered along the way. Adversity will happen, but the projections set forth during the development of a business plan takes every pitfall of the company and its industry into consideration. Therefore, unforeseen circumstances will not catch company decision makers off guard. Instead management can make the necessary adjustments and remain on track to earn abundant revenues.

So, solicit the help of a professional Business Plan Writer during the start-up phase of business. It will set your company up for success before it is too late. If you already have an established company and would like to see it grow, a plan writer can assist you in accomplishing what you originally envisioned for your business. Many entrepreneurs fail before taking the first step towards business ownership. Don’t let the lack of a well written business plan be your downfall. The development of a business plan is the most important decision any owner with goals of launching and successfully operating a business can make. Make the right decision, hire me today to create for you a detailed, precise, and professional business plan that will position you ahead of your competition for years to come.

A.L. Demings

“Action is the foundational key to all success” ~Pablo Picasso~

Exploring Business Ownership – Craft Your Reason to Be in Business (Part 3 of 7)

We’re exploring the ins and outs of business ownership for wannabe business owners who are considering taking the plunge. In part 2 we decided that a good definition of a successful business is…

A self-sustaining entity that allows you to achieve your lifestyle goals.

Defining Your Lifestyle Goals

What lifestyle do you want your business to provide? As I shared in part 1, some people fantasize that business ownership will allow them to be waited on hand-and-foot on the French Rivera, which I refer to as “gentleman farmer’s syndrome.” Fair warning: Maybe you can achieve that goal after retirement, but failing to actively oversee your business while you own it means your business will almost certainly fail!

Even big business is not immune from this fact of life. A good example is Lee Iacocca when he moved from the #2 spot at Ford to assume the chairmanship of Chrysler Corporation. He first focused on rescuing the troubled automaker by bringing out the K car (remember the K cars?) and introducing the mini-van (originally a Ford concept that Ford didn’t feel there was a market for). His efforts were successful and Chrysler was able to pay back their government loan in full, ahead of schedule. In fact, the federal government actually made money from the first Chrysler bailout.

But even a corporation as large and talented as Chrysler suffered while he was later distracted in the 1980’s by traveling to raise funds to restore the Statue of Liberty. Chrysler lost market share during that period that it never regained. Without the captain guiding the ship it wandered off course and again required a huge effort to just avoid disaster.

Get rid of any visions (hallucinations?) that you have of creating a business that would support a gentleman farmer’s lifestyle. It’s the road to financial disaster. Successful businesses always have active owner involvement and oversight.

Your Goals May Change

In reality, lifestyle goals vary widely and may change over time. Some may want to make huge sums of money, but others might place a higher priority on having a flexible work schedule, or not having to work backshift or weekends or holidays. Still others really desire a business that creates intellectual stimulation (think Steve Jobs of Apple Computer) or positions them in the spotlight as a community leader. And others might want control of their calendar so they can be at Parents to Lunch with their elementary school child or be able to ramp down their calendar during the summer months when the kids are out of school.

The point is that you may value one or more of these attributes above making large sums of money. Craft YOUR reason for wanting to be in business. Don’t simply adopt someone else’s.

Still have the “itch?” Employees, franchise owners, and entrepreneurs all think differently. In part 4 we’ll explore how employees think differently from business owners.

Types of Business Ownership Structures

A business ownership should be structured according to the needs of the owners and potentially liability that the business could incur. The different types of business ownership are

Sole proprietorship

Partnership

Limited Liability Corporation

Corporation (for profit)

Nonprofit corporation

Limited Partnerships

This type of business organization is costly and complicated to prepare. It is not recommended for the average small business owner. Limited partnerships are usually created by one person or company who solicits investments from others. The people who invest are considered the limited partners. The general partner is in charge of the business’s everyday operations. They are personally liable for business dents. Limited partners have little control over daily business decisions or operations. Because of this they are not personally liable for business debts or claims.

A Corporation

The most significant benefit to forming a corporation is that it limits the owners’ personal liability for business dents and any court judgments against the business. A corporation is an independent legal and tax entity. This sets it apart from other types of businesses. The owners do not use their personal tax returns to pay tax on corporate profits because the corporation itself pays these taxes. Any money drawn from the corporation in the form of salaries, bonuses, etc is paid by the owners in their personal income tax returns.

Limited Liability Corporations

Limited Liability Corporations provide their owners just that, limited personal liability for business debts and claims. However, LLCs resemble partnerships when it comes to taxes. The owners of an LLC pay taxes on their shares of the business income on their personal tax returns. This type of organization is good for business owners who either

Could be sued by customers

Run the risk of piling up a lot of debt

Have substantial personal assets they want to protect

Sole Proprietorship and Partnership

A sole proprietorship, or partnership, is the ideal ownership structure for an up and coming business or the average small business. They do not have to be registered with the state and go into effect as soon as one person goes into business with themselves or two or more people go into business together. Any business income is reported on the owner’s personal income taxes. They are also personally liable for any business debts or court decisions against the business.

For more information on business ownership structures, visit www.businessdirectoryforyou.com