Employee vs. Entrepreneur?

As we rapidly approach 10% unemployment, many people are asking themselves if it makes sense to pursue entrepreneurship. You may be in this conversation around your own kitchen table.

“Should I start my own business?”

Perhaps you have a job now, but given the market conditions, your debt load, projected living expenses, etc., you have come to the conclusion that you need to increase your household income. One solution would be to get a part time job, but with rising unemployment, that’s not easy to do. Then what?

Starting your own business is a romantic idea. The elixir of freedom from a boss, ability to pursue your gifts and create the kind of income you’ve dreamed of have spurred millions of people to pursue entrepreneurship. Where do you start? Many people start with Google and start searching for ways to make more money. They have business opportunities presented to them online and from friends & family.

• What’s good and what’s not?
• How do I actually make a good decision?
• Where do I begin?

I mentioned in last month’s “Income, Profit, Equity.” newsletter an adage we at Stratworx refer to frequently; ‘Take your time and get there faster.’ Dr. Bill Greenman a long time entrepreneur, business partner and visionary told me a long time ago, “There are only two things that happen quickly, Miracles and Disasters.”

If you are going to pursue entrepreneurship, you must have a long term view. That’s not to say you can’t create income in the short term, because there are effective ways to do so, but you have to make decisions based on short and long term consequences. The starting place is what we call, ‘Entrepreneurial Due Diligence.’ In simple terms it means doing your homework.

Here’s an example.

Suppose you think you want to build an internet based business marketing your own line of landscape decorations. You have developed a unique way to make gardening fun (something I would buy because gardening and I don’t have a good working relationship). You think you can find a source that can manufacture and ship orders for you at a reasonable price.

Where do you begin your entrepreneurial due diligence?

New entrepreneurs would probably put together a contract with the manufacturer and shipper, get an e-commerce website built with an integrated merchant account, hire a graphic artist and a printer to create brochures that match the website and start selling as fast a possible.

Experienced entrepreneurs would start asking questions in the marketplace and gathering prospective customers BEFORE the manufacturing contract is ever signed. Why? Because when you float the idea of this landscape decoration, you need to know what the market is willing to pay for it. They may love the idea at $19.95, but it may cost $25 to manufacture…bad numbers.

Or they may like the idea, but not want to pay anything for it because they are saving every dime possible. This is the type of information that is CRITICAL and it requires patience to pursue.

When you are diligent in researching the market, paying close attention to the money and asking the market for feedback in advance…you can be a successful entrepreneur!

Cheers,
Steve

Steve Olds
Founder and CEO
www.STRATWORX.com