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Show Emery County Chamber of Commerce February 2002 9 Thinking of Starting Your Own Business? By MATT SWEENY lished company. Without a doubt, the odds of achieving long-tersuccess are small. It is generally recognized that most new small businesses fail within their first year of operation and that around nine out of 10 last no longer than of your time and energy. five years. Yet, for all quires considerable planning. Without a comprehensive business plan your chances of success are greatly reduced. Hopes for outside funding and credit from suppliers depend largely on how favorably banks and other lenders view your plan. In addition, inadequate planningwill make it difficult to manage overall operations, since a good business plan senes as your blueprint for the future. To be effective, your business plan should answer these ba- m Many of us have given at least some thought to starting our own business. For the most part, these thoughts go no further than daydreams that help pass the time in traffic or are used to smooth over the rough edges of a difficult day. Over the past 10 years, however, more and more Americans have taken these dreams and turned them into reality. Whether owned by early retirees, MBAs just out of graduate school or the married couple on the next block, tens of thousands of small businesses are established every year. In fact, its generally recognized that small businesses account for more than half of the U.S. workforce. Ongoing advances in information technology and telecommunications have helped turn many a former employee into an owner-a- t least temporarily. Successful entrepreneurship, however, remains an elusive prospect. Startingyour own business is an extremely serious for people who have become accustomed to the security of working for an estab undertak-ing-espeeial- ly that, success can happen. Patience, hard wnrk and careful planning are some of the necessary ingredients. Although a thorough examination of the ins and outs of starting a small business would fill several volumes, the following sections can help give prospective entrepreneurs a rough idea of the challenges ahead. Know Yourself The prospect of owning your own business may seem attractive, but it isnt for everyone. People unable to thrive in a challenging environment, w'ho are averse to taking risks or who find it difficult to make decisions and accept the resulting responsibility are poor candidates for entrepreneurship. As a small business owner you have to make a total commitment, since your business will require tremendous amounts Prepare As is true of lifes other major decisions, such as choosing a college, buying a home or raising a family, starting a business re- sic questions: What will the business do? What are its resources? Where is it going? How will it get there? How will you measure suc- cess? A business plan also demonstrates that youve given serious thought to creating your business and that you view the future pragmatically. Profes well-prepar- sionally prepared plans, should you decide to take that route, w'ill fully describe eveiy major aspect of the proposed venture. These include, but are not limited to: principal owners products and sendees marketing strategy problems and opportunities realistic sales, market share and profit objectives preliminary budgets. success. But the fate of every enterprise ultimately depends on the numbers. An accurate, easily understood and timely accounting system, therefore, is an absolute Managing Money skills. But, and problem-handlin- g even the most skilkxl entrepreneur may need the assistance of a professional from time to time-oflc- n when it can least lx afforded, fortunately, however, professional business advice need not be expensive. Business and trade associations, chambers of commerce and the local library, just to name a few, are all sources of modestly priced (or even free) expertise. Dont let a misplaced sense of pride prevent you from discovering the correct solutions to your must. Otherwise, accurate records will be impossible to of the worst mistakes a small business owner can make. keep-on- e Help! Most small business owners take pride Inadequate start-u- p funding leads to many small business failures. Having too little money in reserve as your business struggles to get off the ground can quickly lead to disaster. Many small business owmers overlook the time gap separating the -cutting ceremony from the first quarterly flow of profits. Having only enough cash on hand for a few months rent, essential equipment and a basic inventory will leave you vulnerable to unforeseen difficulties. Operatingabusiness would be considerably easier if enthusiribbon- asm, hard work and dedication were the sole requirements for in their independence business problems. Determine how much help you need and try to get it as early as possible. (Sweeny i.sti financial adrisur for Maryan Stanley.) Wilcox Insurance J&D Automotive Insuring the important things in life. Tracy Wilcox knows what matters in life. Whether you need life, home, health or auto insurance drop by Wilcox Insurance where they are helping insure a secure future for your loved ones. 71 S. Center, Castle Dale 381-28- Jim & Derri Jewkes and the great staff at J&D Automotive have been providing reliable and friendly service for the last 18 years. They are proud of the fact that they are now celebrating their first anniversary as a Napa Auto Parts & Car Care Center store. Stop in today for all of your automotive parts and repair needs. 120 W.. Main Castle Dale. 7 95 381-533- . |