To Be or Not To Be….an Entrepreneur

That Is A Great Question!

Being in business is great! You are in control of your own destiny, but it has both pros and cons. The pros are you make most of the decisions, nobody tells you what to do, if you want to make more money you just add new customers or add to your product line.

The cons are you make most of the decisions, nobody tells you what to do, and if you want to make more money you have to get new customers or add to your product line. Like some people we go into business for a couple of reasons: 1) We are good at doing something and believe we can create a successful business, or 2) We leave former employment for various reasons and decide to venture out on our own.

Nothing is wrong with either of those two reasons. Many successful businesses have been built as a result. However one mistake that is often made is those businesses begin without the benefit of having a strong business foundation. Many of us believe that if we are good, and I mean really good, at something it automatically will translate into a successful business. Or if we have excelled at running your employer’s company we can do the same with our own. Both assumptions are far from the truth and as you know, “it is the truth that will set you free”.

Being able to diagnose a troubled engine by just hearing helps if you’re a mechanic, but does not help when you need to decide whether to be a sole proprietor or to incorporate. There are a number of factors to consider that are not obvious to the uninformed. Making a mistake here could have life-long consequences for you and your business. Just because you were an excellent accountant does not mean you are familiar with insurance requirements or who are your best potential customers. It makes no sense to pursue markets that are saturated or try to be cost competitive thinking you’ll be more profitable. If you can’t find business where you are, you may need to relocate or extend your territory to surrounding cities, counties or regions. Today your customer base may be residential; tomorrow it is commercial, governmental or even international.

These components as well as personnel, startup costs, and a financial plan are the fundamental beginning for establishing a successful business. Believing you can do so on your own is a grave mistake. There are a number of sources out there to help you with this type of training. Some are better than others. Cost and time commitments range based on your experience. Yes, any business you embark on will require an investment of time and money. Starting out with a sound business plan is the best investment you can make. In the end it will you the best return on your investment. There is an old adage that says: “if you fail to plan, you plan to fail.”

If you have questions about starting a business in Fort Worth or Tarrant County, give us a call – we can help you with free counseling.

Robert M. Griffin
Finance Director of LPM, Inc., Arlington, TX.
and
Counselor, Knowledge For Success, Fort Worth, TX