TAKING THE ENTREPRENEURIAL PLUNGE

Many of us are going into business for ourselves, either as a result of being downsized or because we are aware of the fact that business owners are likely to make a lot more money in their lifetimes than employees regardless of education or social status.

Being an entrepreneur is hard and risky but times have changed for corporate employees and NOT for the better. As it becomes more risky to be just an employee, it becomes less risky to be a business owner.

The other day a news agency reported that Circuit City laid off thousands of long time employees. Then, in a truly cynical move, they offered to hire back their desperate former employees at lower salaries, probably with a loss of benefits.

Boo, Circuit City! I’m sure Wall Street raised their stock price. Did you realize stock price goes up when employee costs go down? It means workers are always at risk no matter how good their work is. It’s just the way the big business model works today.

Now, there is a really good reason to start your own business! It comes right down to pure survival. Workers have learned that lesson the hard way. It may not be the lesson big companies wanted us to learn, but it’s the natural result of their actions. So, now that we’ve caught on, what can we do about making a more secure living?

There are lots of alternatives. Analyze your life and interests to find a good niche for you and your dreams.

1. Do you have a hobby or interest that you like that you can turn into a business? 2. Do you have a skill or trade or certification or diploma that could be an independent career? 3. Could you start some type of service or information business?

These are only a few ideas. There are lots of opportunities out there.

What if you don’t have a hobby or personal interest that you feel you can turn into a business.

Remember the old saying “Buy low, sell high”. It’s a great business model.

ALL kinds of things can be salvaged, from metals to architectural pieces of buildings to old mechanical equipment. Or maybe you’re an engineer and are interested in manufacturing processes.

Just these two categories, salvage and manufacturing, encompass endless possibilities and opportunities. Manufacturing equipment from hundreds of closed American manufacturing plants is now running strong in other parts of the world.

So, what’s YOUR next career? Vet, attorney, senior care, collectibles, car parts, salvage, day spa, accountant, professional gamester, wedding planner, chef/ baker, tailor, designer, builder, contractor, painter, plumber, electrician, jeweler, watch maker, car repairs, net guru, manufacturer, weaver, upholsterer, clothing designer, retail store owner, franchisee, franchiser, MD, …………………it’s up to you!

Once you decide what you want to do, how do you minimize the risks?

Test, test, test to find profitable markets, strategies and customers you need to succeed. Just opening a business and hoping “they will come”, isn’t enough. All businesses have to really HUNT those customers. Be prepared for how much work it will take.

Shopkeepers have worked from home or lived over the store for eons. It’s a good business model for all kinds of lifestyles. Your kids may end up learning a good trade from mom or dad and learning about business and finance in the real world. This is an excellent strategy for retail or service businesses. You can limit your expenses by living and working in the same place if it’s practical for the kind of business you want to have. The biggest disadvantage with this is that you tend to work more hours because you never leave your working space.

Saving money and living as cheaply as possible will help you succeed. It gives you more room for shortfalls in income so you extend the time you have to succeed. But remember you have to actually MAKE MONEY. It’s both the hardest thing to do and the most important thing a business MUST do to succeed. It’s also a big reason why large companies try so hard to control employee costs. But…guess what? They have to actually make money, too! Enron forgot they actually needed to make money and look what happened to them! Don’t get enamored with your product or even the top line (sales). Watch the bottom line and cash flow to insure you are around for a long time. Best of luck.

Paula Stone is a seasoned entrepreneur. In addition to owning a retail business with her sisters, she works with her husband Ron in his financial services business. Their website is http://www.no-doc-commercial-mortgages.com This article is free for republishing Source: http://www.articlealley.com/article_146003_15.html