Why Do People Start Businesses?

Starting a new business is exhilarating and frightening all at the same time. There is a lot of fear of the unknown. The brain is churning with questions. “Will I be successful, screw up, go bankrupt? Am I doing the right thing? I really, really want to start this business, but I don’t know how.” These fears hold back 95% of potential business owners from ever getting started.

It is not surprising that only 5% of the people in the world are successful at starting a new business.

Why Do People Start Businesses?

Most new businesses are started for one of three reasons:

1. Need to make money, can’t get a job, or because they want to. (Newbie)

2. Have a passion for an industry and perceive they can do it better (Sole Proprietor)

3. Entrepreneurial. The individual starting the business has other businesses and passions and wants to create a new business. Entrepreneurs create businesses because they can.

Road Blocks to a New Business:

On Your Own:

A newbie just starting out has all sorts of challenges to deal with. The biggest being their own fear and a lack of clarity as to why they want to have a business. “It was a good idea at the time” is a costly reason. Tens of thousands of dollars have been wasted because the person looking for a business did not understand why they wanted a business.

If you are a newbie, and have not spent your fortune yet, I would encourage you to sit down and figure out why you want to be a business owner versus having a job.

Your why could be freedom to be with your family, make money for vacations, college for the kids, have a new home, help your parents, or to pay down your credit card debt. I started a business to pay down my credit card debt.

I learned that success takes consistency, focus, determination and the ability to take a lot of flak from all sources.

You will find that you have:

* Little or no support from family and friends, (they say you are crazy)

* No financial resources, (The banks infer that you are crazy) (it is extremely difficult to have a business without the capital to advertise, and obtain the resources that are needed to get a business going),

* No business background, make poor choices of for their new business, (like an ice cream franchise in rural Alaska, or a web-based business and they do not own a computer),

* No system or records for running the business (envelopes full of receipts do not count as a system nor do they enhance finding new customers), and

* No marketing experience (if you don’t know anything about marketing and sales, your business is not open until you do)

* Oh, and one last reason, the biggest of all “THE FEAR of SELLING”. That is the number one fear that kills new businesses every time. (I can attest to that one. That fear hammered me on three businesses.)

The person seeking a new business will increase their chances of success if they find a business complete with business systems, mentors, a master mind group and leadership training as well as systems for doing the advertising and sales.

The best way to prepare to be a business owner is to buy a business that has all of the systems and training required to be successful. The experience prepares one for owning other businesses and being financially free.

Sole Proprietor

The sole proprietor will probably burn out after seven years because the business has been built around his/her expertise and they are not willing to let go of the day to day operations. Remember, they started the business because they thought they could do it better.

* They usually have the support of family and friends. (But, secretly they think that person is crazy when he/she could have a cushy job)

* They usually have the financial resources or the ability to obtain them.

* They have business experience at a management level, but usually have not had any formal training in running a business. (The biggest challenge is the finance end of the business. Most sole proprietors do not have any accounting experience except with their check book and that is usually not a pretty sight)

* The Sole Proprietor has a system for running the business. It is their system, but it works (for them). It makes it very difficult to bring on additional employees because the system is designed for one person.

* They usually have no marketing experience, unless that was the field they were in, and have to scramble to learn the concepts and apply them quickly (No marketing, no customers), and

* Of course they have to be able to sell. They usually have clientele when they start, but have to find new clients and sell to them if they are to grow and prosper.

* Their work week is now 24/7. The money may be good, but the quality of life sucks.

* The government takes more taxes from sole proprietors.

The biggest risk of being a sole proprietor is if you are not working there is no income.

A sole proprietor will increase his/her chances of building a strong business that can be run by others if they find a group of like-minded business owners that can commiserate and provide possible solutions to problems that are faced by being sole proprietors.

The knowledge of a group is far stronger than one. Frustrations can be relieved by learning a different way of approaching a problem from your group.

Entrepreneur – Has a Team

The entrepreneur is successful because he/she has a team, has been in business previously or has a mentor in that business. Their teams are chosen for their strengths. The team as a whole makes one living organization – the business.

Successful entrepreneurs have passion for their business and the drive to see it grow. They have mentors and a group of like-minded business owners to share their stories with and learn from. This is the critical piece to their success.

Their master mind group keeps them current with new developments and opportunities and serves as a sounding board for new ideas. The advantage of a group like this is that an idea may sound great to you, but someone else may know of a reason why it is a bad idea and they are not afraid to tell you. It is called business networking which is the equivalent of social networking

Whether you are a starting a business, have a new business, or are creating another one, the answer to having a successful experience is to find a master mind group, a group of individuals that are sole proprietors, a mentor, or if you are lucky a business with all of the above.

Good luck with your entrepreneurial experience. It is worth it to have the freedom to do what you want when you want and be with your family and friends. Oh, and wake up at the crack of noon, should you choose.

Quick Start Business

A quick start business is one that you can implement and put into action right now. Do you want to start a business now that is going to start putting money into your account? You can find links, information and directories on this site that will lead you to the answers you have been searching for about a quick start business.

In starting any business, you should form a business plan. A business plan is going to help you set goals. Set goals for your business that you can turn back to, that you can reflect about when you need to take action to expand and create additional sales for your business during the growing stages of business.

Your quick start business plan is going to tackle some quick topics such as:

  • Who am I going to sell to?
  • Where will the product come from?
  • Do I need to invest a lot of money?
  • Do I need a large space?
  • Will I operate online or offline, or perhaps both?
  • Where is my customer from?
  • How much can I make on every product I sell?

When you can answer these questions, you have researched your quick start business fairly well and are ready to put your plan into action. The business owner, who is well informed, is more likely to be successful in the long run. Avoid investing or starting any business without being able to answer those quick questions listed above.

Tips for a quick start business owner

Before jumping into any business you should be aware of what an entrepreneur, what a business owner most often needs to ‘have’ within their self before starting a business. The entrepreneur is one that is self-confident. You have to be confident in your abilities, in your skills and in your dedication. Good ethics and good work habits are traits of an entrepreneur. We each have our own values, which will apply to any and all situations within our lives. Being able to apply ethics and work habits to a quick start business will give you an edge, to be more successful. Yet, another trait of the entrepreneur is good communication skills. Quick start businesses are built to last. In order for a business to ‘last’ and be profitable, good communication between vendors, customers and you as the business owner will be vital.

Additionally, for your success we suggest that an entrepreneur is one that is able to deal with failure, learn from mistakes and continue to move on in the business. Failures are a learning experience and will benefit you if you learn from them and move on. Dwelling on mistakes and failures will spell doom for your business, no matter what type of business you start. Take charge of your life; take charge of your business, be your own boss using your creative ideas along with the quick start business ideas to build a business for yourself. You make your own choices. As you investigate and learn about any type of quick start business, you will find there is one out there, just waiting for you to put it into action.

Earn Profit Even Before You Start Business With Cheap Website Hosting

Before signing a contract with a cheap website hosting company, try to earn profit first using your computer and the internet. You do not have to put up your own website to earn profit. There are numerous ways to earn profit on the Internet that you can consider doing. If you do your homework, you will surely find something that can give you a minimum extra income of two hundred dollars a month. Plenty of people are into this endeavor. There are even novice in the use of computers and the Internet who already have earned thousands of dollars.

Internet marketing is one way to earn profit even before you start business with cheap website hosting company. It is very easy to do and the income potential is high. You only need to advertise the services or products of different companies and when you are able to make a sale the company will pay you commissions. You can start by offering the products or services to your family and friends through your social network membership. You can also start a blog wherein you can advertise the products or services of the companies you want to promote. Visitors to your blog are your potential buyers.

Another way of earning profit without actually owning a website is by offering your services as a freelance web content writer. There are online companies who hire writers online instead of hiring regular employees to say on recruitment and social security expenses. Also, the company is not required to maintain a regular employee especially if the writing job is temporary. If you are into manufacturing or production, you may advertise your product through the different online marketplace and make profit when online customers buy from you. Most of the marketplaces are free and it will not cost you to advertise. There are plenty of home bakers and craft makers who offer their products through these marketplaces and make big income. Once you are well-versed with how the Internet online business works, it is the time for you to do business with cheap web hosting company. By that time you already know what your requirements are and the potential income you will earn.