Ebook Starting A Business 101 PDF
Ebook Starting A Business 101 PDF
Ebook Starting A Business 101 PDF
(Canadian Edition)
Table of Contents
Introduction.............................................................................................................................4
To Be, Or Not To Be An Entrepreneur...................................................................................7
Your Business Idea...............................................................................................................10
Current Trendy Business Ideas............................................................................................12
Buy or Start - the Pros and Cons........................................................................................15
Do You Have Enough Money?.............................................................................................18
So, Where Do You Get the Money From?...........................................................................19
The Power of Knowledge.....................................................................................................22
7 Ways To Check Whether Your Business Will Fly.............................................................25
The Importance of Having a USP........................................................................................29
Choosing a Great Business Name......................................................................................32
Its All About Brand Image...................................................................................................35
How Important Is It to Have a Website?.............................................................................37
To Be, or Not to Be an Entrepreneur - The Quiz Results.................................................39
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Introduction
When you start a company it is important to set it up correctly from
the outset. The best place to start the process of registering your
business, and to discover all the other things you need to do to
comply with the many regulations that govern small business, is the
Canada Business Network www.canadabusiness.ca/eng).
In this book we are not going to take you through all the steps
required to legally set up your business. This information is readily,
and exhaustively, available through several federal and provincial
government websites, which guide you step-by-step through the
entire process.
Suffice it to say that the list of what you will need to do is long, and will include: deciding whether
your business will be a sole proprietorship, partnership or corporation; registering the name of your
company; registering for GST/PST/HST (depending on which province or territory your business is in);
registering for WCB/Worksafe; getting you local business licence; finding out what permits or licences
you will need for your specific business, and more.
Its a lot of paperwork, but you only have to do it once and your accountant and lawyer will help you
if you get stuck. If you have enough start-up capital to pay professionals to do this for you, so much
the better.
So, what are we going to talk about? Well, first off before you get carried away with the dream of being
your own boss, and becoming the next Bill Gates, you should take stock and think about what life will
be like as an entrepreneur. Its easy to get excited about the potential for the product, or service you
are planning to sell, or the fact that at last you can truly turn your hobby, or natural skill into a way to
earn a living. The reality however, is that whatever business you are going to start, your primary role will
be that of salesperson. That is the stark reality, unless of course you have sufficient start-up capital to
hire a sales team from day one. Even then, you will not be able to hide away in the back room avoiding
contact with potential customers, suppliers, bankers and the multitude of other people who you will
need to sell your business concept to.
I once knew a government worker, whose hobby was making wooden toys. He made the best wooden
toys I had ever seen and whenever he showed them to people they wanted to buy them for their
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children, or grandchildren. He decided to leave his secure government position to pursue his dream
of making a living out of his hobby. Unfortunately he went out of business after a little over a year. The
reason? He loved making wooden toys - his passion was to make the best wooden toys anyone could
possibly make. Confused? Let me explain - he loved making wooden toys, he hated selling them, he
hated running a business, he hated being disturbed by customers when they visited his workshop - he
just wanted to be left alone to make his toys.
In Starting a Business 101, we want to provide you with information and advice that is less readily
available in start-up business books. First, we want to encourage you to look deep within yourself
to see if starting a business really suits you - after all we wouldnt want you to leave a secure job,
like our wooden toy maker, and fail, wishing someone had only warned you what entrepreneurship
was really like. Basically, this volume is all about making you think about whats important when
starting a business.
After youve taken the To Be, or Not to Be an Entrepreneur quiz, we look at how to come up with,
and judge, your business concept. Then to help you a little further with that all important task, we take
a look at which business ideas are trendy at the moment. Even if none of them are within the realm of
your expertise, or they simply dont appeal to you, I urge you to take a good look at them because they
tell you whats working out there in the world of business. What can you learn from these trends, and
what do they tell you about your particular business concept? Digging a little deeper, 12 Industries
to Consider is well worth reading as it offers a great starting point for your investigation into what
business might be best for you.
Whether to start your own business, or buy one that already exists (or a franchise maybe) is a serious
question that should be considered early on in deciding your entrepreneurial future. Reading Buy or
Start - The Pros and Cons, may change your mind about starting from scratch, or it might make you
even more determined to make your business idea a reality.
The perennial problem with becoming an entrepreneur is the cost of starting, or buying a business.
Do You Have Enough Money? gives you a quick overview of the sort of expenses you will incur, then
looks at high and low cost start-ups, before talking about where the money might come from.
The Power of Knowledge focuses on something few, if any, books on starting up a business cover. It
is surprising how many people start-up a business in the dark, with no real education on the industry,
or market they are entering. Once, on a vacation in Spain, I was encouraged to enter a bull-ring to
play-fight a young bull. I had no idea what I was doing, had no training and it did not go well. I made
a lot of rookie mistakes, such as holding the cape in front of me rather than to one side, and worst of
all I took my eyes off the bull. As soon as I did, it charged, I ran, I fell, and I it gored me - not badly (the
bulls small and conveniently blunt horn hit my hip bone), but enough for there to be a fair amount of
blood and causing me to walk with a limp for a few months. Learn from my mistake and dont enter the
business ring without knowing fully what you are getting into - do your homework and hopefully there
wont be too many gory surprises.
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Whenever anyone starts a business the odds are against them, but there a number of things you can
do to stack the odds in your favour. Thats where 7 Ways To Check Whether Your Business Will
Fly can help. This chapter will help you assess whether there really is a market out there for what you
plan to sell.
Whatever business you start, you will need to ensure that it has something different about it, something
special. The Importance of Having a USP deals with unique selling propositions, and provides
examples of how some businesses set themselves apart from the crowd. It goes on to provide some
strategies for discovering and developing your own USP.
Whats in a name? A great deal, as Choosing a Great Business Name explains; for a start,
these days you have to have a name that is available as a URL, otherwise you may be sending
yourself into Internet oblivion. It cant be too clever, otherwise people wont understand it, on the
other hand keeping with a family name can also potentially send the wrong message as with an
undertaker in Illinois called Slaughter and Son Funeral Directors. Sounds like something straight
out of the O.K. Corral!
Branding is becoming increasingly important in this day and age, where consumers are Internet
savvy, and more knowledgeable about their choices and our products and services then ever before.
Our organizational culture is under scrutiny, so our branding had better be spot on. In Its All About
Brand Image we discuss all these issues and look at what the current trend is in terms of branding.
An integral part of branding is the corporate website so we provide ten reasons why it is vital to have a
website. If you count carefully, theres a whole lot more than ten, because we cheat and include several
points under each number!
We finish off by providing the quiz results for To Be, or Not to Be an Entrepreneur and give brief
comments on all 41 questions.
I hope that once you have read this book, taken the test, and carried out all the suggested research,
youll have a good idea as to whether starting a business is right for you, and if that germ of a business
idea you have might stand a chance of success.
Whatever you decide, I wish you luck. Its hard work starting a business, and even harder work running
one. Success will depend on how you define it, and I can assure you the goal posts will change along
the way, but for true entrepreneurs, theres no other way of life.
Mike Wicks
Publisher, Blue Beetle Books Inc.
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To get the best out of this pop quiz, you need to take
a little time over it and consider each question and
the multiple choice answers carefully. Remember,
youre the only one that will see the answers, so be
brutally honest with yourself. Its an important, often
life-changing decision to become self-employed - to
start a business and burn some bridges. You should
be very sure that its the right way for you to proceed
with your career, and your life.
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Thats Me!
1
Im a people person.
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15
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I like to look at the big picture rather than the minute details.
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Sort of
No
Huh?
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29
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32
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34
35
36
37
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40
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Columns
Thats Me!
Sort of
No
Huh?
x1
x2
x3
x2
Add together the total number of check marks you made in each
column (make sure A to D add up to 41!)
Score the following for each check mark in the column
Multiply your numbers in columns A, B, C, and D by the
numbers above and enter the totals here
Now, enter your total score for all four columns and then turn to page 39 to discover
entrepreneurial suitability rating, and read an overview of why we asked each
question.
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2. M
ake sure you have all the necessary
skills to run the business (e.g. not just those
required to manufacture the product, or deliver
the service). Remember no matter what the
business is, you will have to do some selling.
3. H
ow much money do you have to invest?
Businesses such as graphic design and
consulting require far less start-up capital, for
instance, than opening a retail establishment.
Buying a franchise can be a good idea, but do
you have enough capital for both the purchase
and the initial running costs?
4. T
hink about what you enjoy doing, and what
you are passionate about. You are more likely
to stay the course and be successful, if you
enjoy what you do. However, be careful that
your passion for your hobby doesnt blind you
to the business potential it has. You may be an
excellent writer of poetry, but making a living
from it is all but impossible.
5. D
ecide what type of selling might be
involved. A retail store for instance allows you
to be a little like a spider in its web, waiting for
people to come along before interacting with
them. Being a consultant on the other hand,
means cold calling and attending business
mixers. Remember selling is ALWAYS a major
part of any business.
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6. H
ow competitive is the field you want to
enter? You may have worked for many years
as a lube technician and feel that you have
what it takes to launch your own business,
but how many other oil and lube businesses
are there in your town, and is there enough
business for another? Analyze your market and
see how saturated it is. Remember, you will be
trying to take market share away from existing
businesses, unless your business is the only
one of its kind in the locale.
7. L
ook for where there is a gap in the market
- where there is unfulfilled demand. If you
are looking at the retail market, is there a
product that people currently have to travel a
long way to purchase? Consider the example
of social media consultants; as the business
world started to see the potential for marketing
their products via Facebook, Twitter and other
sites, there was no one around to tell them how
to go about it. The gap was quickly filled by
entrepreneurs who saw a need that was at that
time unanswered.
8. L
ook at market trends and see what is
becoming increasingly popular, and what
may be coming to the end of its popularity.
For instance, now would not be the time to
open a video rental store, or one selling CDs
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1. E
lder Care - we all know the population is
aging, so its no surprise that this features
prominently. We are living longer, healthier,
and more independently - but the longer we
stay in our own homes the more help well
need.
2. H
ealth and Wellness - everything from
healthy food, to fitness gyms and regimes
are covered in this sector, along with health
coaching and online health programs and
apps.
1. C
onsumer Staples - at the end of the day
we all have to eat, and we all use consumable
items that we need to replace regularly. So,
manufacturing such items, or buying and selling
them will always be a solid business.
2. S
mart Phone Apps - as mentioned earlier
this is big business with some 500,000 Apple
approved apps to date. If you are thinking
that making a business out of developing
apps might be rather ambitious, check out the
following Ted Talk given by an app developer
called Thomas Suarez, who just happens to be
a 6th Grader! (http://youtu.be/ehDAP1OQ9Zw)
3. E
lder Care - First some facts: 5 million baby
boomers turn sixty years of age every year,
thats 416,666 per month, 96,153 per week,
13,698 per day, 9.5 per minute. A boomer turns
sixty every 6.3 seconds and every 7 seconds a
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Lets do a quick analysis of some of the pros and cons of buying a business, or a franchise.
Pros
Cons
Its great to have systems, but they may not suit the
way you work, or fit the way you see the future of the
business.
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Overall, most experts would suggest that you have a better chance of success if you purchase an existing
business. But, lets look at the pros and cons of starting your own business so that you can make your own
decision.
Pros
Cons
Start-up costs are under your control and are often less
than when purchasing an existing business.
*S
ee: The State of Entrepreneurship in Canada: Industry Canada
(www.ic.gc.ca/eic/site/sbrp-rppe.nsf/vwapj/SEC-EEC_eng.pdf/$file/SEC-EEC_eng.pdf)
Think long and hard about your options when it comes to deciding between buying, or starting, a business.
Consider all the pros and cons and above all else get advice from business people you know, business
account managers at banks, accountants, lawyers, experts in your chosen industry and market, and
anyone else that you can think of. Then, go online and read as much as you can about the business you are
thinking of starting or buying. It is vital that you are thorough in your due diligence.
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Inventory
Commercial premises, which may or may
not require leasehold improvements
Staff
Promotional budget
Less expensive start-ups are usually:
Home-based
Service focused
Owner operated
Use contract staff when required
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Partners
Partners can be a blessing and a curse. On the
upside many hands make light work, and if you
can find someone you can trust that
has a whole bunch of skills,
which are complementary to
your own, then this may be
a good way to share the
financial burden. But, if
you are only bringing in
a partner for his, or her,
money then you should
take into consideration
that you are giving that
person a significant say in
how your business operates
(how much will depend on the
level of financial support, and the
agreement you reach).
Loans
Small business start-ups find it difficult to get
loans from traditional sources. Dont even
consider approaching a bank unless you have an
excellent personal credit rating and a first-class,
professionally written, business plan. Even then,
you will often find it difficult if you havent built up
an excellent relationship with the bank.
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Conclusion
Creative financing
Over the years I have helped thousands of small
businesses start-up and their creativity surrounding
early financing, when the banks wouldnt touch
them, never ceases to amaze me.
Think about what you can sell that could raise
that highly important start-up capital. I have
seen people sell their boats, Harley-Davidson
motorcycles, cigarette card and stamp collections,
even houses. It is a good indication of an
entrepreneurs commitment to his or her idea, when
you see them sell something they treasure. Bank
account managers are particularly impressed when
entrepreneurs are willing to risk their own assets.
Programs
The Self-Employment Program, offered by the
federal government through service agencies
across Canada, is an employment program that
provides financial and entrepreneurial assistance
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Strengths
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Weaknesses
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Tips on Discovering
Your USP
Eight Foundational
Principles of a USP
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Im always trying to convince people to believe what I believe. When you run your own business you
have to sell yourself, your concept, your business and your products or services.
I tend to lose my temper with people quite easily when theyre not with the agenda. You cant avoid
customers, or clients, when youre running a business and they can often be difficult. Lose your temper
even once and it can ruin your reputation.
I have a lot of friends and family who support my ideas and plans. Its a stressful life being in business
and you have to be surrounded by people that are supportive and understanding. When you cant pay
yourself one month because you have to pay staff, or a supplier, you will need a spouse that stands by you
and your decisions and doesnt lose faith at the first sign of trouble.
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I have several friends and acquaintances who run businesses and often chat with them. Getting
the inside scoop from someone whos been in the trenches is vitally important. Its so much better to learn
from other peoples mistakes than pay the cost yourself.
I am comfortable talking to strangers on the phone. Although we all chat away via email, text
messaging, Facebook, LinkedIn, the telephone is still the way most of us make first contact. Its the way
we set up appointments, the way we deal with inquiries and the method many of our clients first contact
us. If you dont like using the phone then this could be a challenge for you in your business.
I like people to agree with me, but its more important that they respect me. In business, your integrity
is on show and it is vital that you have the respect of not only your customers, but your employees and the
business community as a whole.
I find it quite easy to get people to do what I want them to do. This is back to the question of being
able to sell. If you have that knack of being able to convince people to do the things you want to do, then
that will carry over to your business life and be a great asset.
Im a people person. This is big - you have to like people to be in business. Its no good thinking that you
can hire other people to handle all the interaction with clients, customers and the business community. You
are the face of your business.
Ive have had experience managing people. Any experience you have in managing people will
be an enormous asset when running your own business. Think about all the times you have taken a
management role; it doesnt have to have been during employment, it might have been coaching a sports
team, or running a little league, or as part of other volunteering.
10
I get really frustrated when people are slow, or do a job badly, or provide bad service. Entrepreneurs
are not the most patient of people; they can always see a better and faster way to do things and have a
habit of taking over if they see inefficiency.
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I like the idea of working alone. Its lonely at the top and many start-up businesses launch with just the
entrepreneur working from home. If beginning as a home-based business try not to isolate yourself too
much, get out and network, meet old colleagues for coffee - be part of the real world. Many start-ups
close after a year or so because the entrepreneur misses interacting with the real world.
12
Im always reading about the industry and market I plan to open my business in. The people who
usually succeed in any business are those that are passionate about what they do. These people are
totally immersed in their industry; they read trade journals, know all about new technology applicable to
what they do and follow the leaders and pundits in the industry.
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If I really believe in something, I have a tendency to ignore the opinions of other people. Self-belief
is at the heart and soul of true entrepreneurs. Nothing will put them off following their dream. They are selfopinionated and often do not give enough credence to the opinions of others.
14
I laugh at myself often. To be successful, an entrepreneur has to have fun and see the funny side of the
ups and downs of business. They cant, and dont, take themselves too seriously.
15
I get really bored, really quickly! Impatience is at the heart of most entrepreneurs psyche. They are busy
people, often good at multi-tasking and always looking for the next interesting opportunity.
16
Im a morning person, I wake up believing that anythings possible if I have the right attitude.
Entrepreneurs, almost by definition, are optimists otherwise they would never start a business in the first
place. Not only do they wake up raring to go, they often have a pen and paper on their nightstand to catch
all those ideas that occur to them in the middle of the night!
17
I love new technology, new ideas and new ways of doing things. Like cats, entrepreneurs are curious
creatures always looking for whats new. They are very likely to have the latest iPhone, or tablet and their
computer is almost certainly less than three years old.
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I do masses of research online, before I make a purchase decision. Business success comes from
having all the relevant information you need before taking the next step.
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Im a well organized type of person. Because successful entrepreneurs are constantly multi-tasking they
can often appear, and be, disorganized. However this disorganization is more on the surface than in their
mind.
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If I dont know much about some new area of interest I usually want to find out more about it. As
mentioned earlier entrepreneurs are inquisitive. They always want to know more about things and are
constantly asking questions. They are usually excellent at research and can ferret out information on just
about anything.
21
I like to feel appreciated. I want people to recognize the work I do. Having a big ego goes with the
territory. Take a look at all the hugely successful businesspeople around the world and you will see some
massive egos. If you watch Celebrity Apprentice, you will see wonderful examples - how would you feel if
you could emulate the big Don and have your name written in gold on hotels and office blocks?
22
I like to look at the big picture rather than the minute details. Entrepreneurs are goal oriented, they are
envisioning the end result and they hire other people to deal with the minutiae involved in reaching their
goals.
23
Im pretty good at picking myself up and brushing myself down after a let down. Every
entrepreneur has felt failure usually more than once. There is no doubt that you will be metaphorically
kicked in the teeth at regular intervals. Whats important is how you deal with the downturns and curve
balls business life throws at you.
24
I have a good handle on my life and can discipline myself to do what needs to be done, when it
needs to be done. Entrepreneurs may well be dreamers, but they have the discipline to do what needs to
be done and to stay the course.
25
I have a great imagination and can vision what my future will look like. Back to being big picture
people, but more than that entrepreneurs need to be creative, they need to be visionaries.
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I always see the silver lining in challenging times and find where the opportunity is. Its not what
goes wrong, its the attitude you have towards dealing with the challenges running a business throws at
you.
27
Im generally a brave person where life is concerned. Make no mistake you will need a lot of courage
to be self-employed and to grow a business. This life is not for the faint-hearted.
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I am okay with taking risks. Its risky starting a business and no mistake. Try to start a business without
taking any risks and you will undoubtedly fail. But, a good entrepreneur qualifies all risks by thinking every
move through carefully and planning for every eventuality.
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I am often accused of being controlling. Entrepreneurs are Type-A personalities, its in their make-up.
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People think of me as being enthusiastic and energetic. If youve ever been accused of being the
Energizer bunny, then youre probably suited to being an entrepreneur.
31
I know how to fight for what I believe in and have done so in the past. No one ever said starting-up
and running your own business was going to be easy. You will need to fight for your market share every
step of the way.
32
I hate being stuck in a rut, I hate routine. Being employed is having a routine - if that sounds okay, then
step away from being an entrepreneur. On the other hand if you want to enter a life where almost anything
can happen from day-to-day, both good and bad, stressful and elating, then welcome aboard.
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People trust me and know they can rely on me. Whether they are or not, some people appear honest
and others not so much. If people think of you as being trustworthy and more importantly, reliable you
have a better chance of success in business life.
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When I make a mistake I put a positive spin on it by realizing that mistakes are just a way we learn
how to do it better next time. Entrepreneurs are constant learners and see the mistakes they make as
just another way to learn how to do things better next time. They dont beat themselves up over it, they
just get on running their business better.
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I like to be healthy and look after myself. Life as an small business owner is frenetic, stressful, joyful,
tiring and 101 other things. But, it can be hard on your body. Being fit at the outset is a bonus to starting a
business, staying fit is vital to your future success.
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When Im low, I can usually pull myself through it by thinking positively. We all get down from
time to time, especially during tough times, but entrepreneurs dig deep and always find a way to pump
themselves up, put on a smile and bring back that positive attitude. It is the key to their success.
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Ive been asked to leave, or been fired from a few jobs in my time, because I was a difficult
employee. It is amazing how often when an entrepreneur is interviewed that it comes out that they were a
difficult employee and were fired from one or more jobs, or at least asked to leave. This comes back to not
suffering fools gladly and always wanting to do things their way!
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When I was a kid I had part-time jobs, or ran my own sideline business. Its in the blood, scratch
an entrepreneur and theyll bleed lemonade. If you never had a lemonade stand, or knocked door-todoor offering to wash windows, mow lawns or detail cars then you might be behind the eight-ball. Often
entrepreneurship is in the blood and surfaces early in life.
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I dont need a lot of fancy stuff in my life, I can live quite simply when I have to and not be
depressed by it. When you are employed, someone magically puts money in your bank account every few
weeks and you know what to expect in terms of income, month to month, year to year. Not so when you
start your own business. There will ups and down and often you may have little cash coming in. In the early
years at least, you may have to manage on very little income - the question is can you lead the simple life?
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I have a little money put by so that I can support myself for a year or so, if I need to. Starting a
business in any circumstance is difficult, even if you have adequate capital to put into it. But, if you are
living hand-to-mouth before you start your business, then you are heading for difficult times. Ensuring you
have some back up cash (or a second income-earner in the family) to allow you to survive while earning
little to nothing for a year or so is probably the most important thing you can do to protect yourself.
As mentioned earlier, none of this is particularly scientific, but it has been gleaned from decades
of experience in working with start-up companies (over 2,500 of them) and from interviews with
hundreds of successful entrepreneurs.
Take from it as much, or as little, as you feel will help you make the right decision for you in terms
of entering the world of small business.
I wish you well in your great entrepreneurial adventure.
Mike Wicks
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