Read Start Your Own Business Online
Authors: Inc The Staff of Entrepreneur Media
Start Your Own Business (2 page)
Editor: Marla Markman
Contributing Writers
Jill Amadio, Leanne Anderson, Jane Easter Bahls, Stephen Barlas, Stephanie Barlow, Johanna Billings, Bruce Blechman, J. Tol Broome, Andrew Caffey, Melissa Campanelli, Carolyn Campbell, Melissa Caresosa, Cassandra Cavanah, Janean Chun, James Clark, Bob Coleman, Charlene Davis, Cyrstal Detamore-Rodman, Sandra Eddy, Paul & Sarah Edwards, Clifford Ennico, David Evanson, Barry Farber, Iris Lorenz-Fife, Lorayne Fiorillo, Jerry Fisher, Barbara Frantz, Charles Fuller, Cheryl Goldberg, Kim Gordon, Cynthia Griffin, Mark Henricks, Mike Hogan, Frances Huffman, Christopher Keanelly, Danielle Kennedy, Erika Kotite, Jay Conrad Levinson, David Lindo, Jacquelyn Lynn, Richard Maturi, Robert McGarvey, Sean Melvin, Gwen Moran, Heather Page, James Park, Jennifer Pellet, Chris Pentilla, Marcia Perkins-Reed, Debra Phillips, Karen Roy, Edward Rybka, David E. Rye, Eileen Figure Sandlin, Bev Stehli, Gayle Sato Stodder, Guen Sublette, Joan Szabo, Conrad Theodore, Bob Weinstein, Glen Weisman, Geoff Williams, Linda Wroblewski
FOREWORD
by Peter Shea
W
hen we first published our
Start Your Own Business
in 1998, we thought it would make a great reference for people who wanted to be their own boss. We offered advice on what steps to take, and what pitfalls to avoid. The book offers common sense approaches to a wide range of challenges facing the new entrepreneur, drawing solutions from the successes and failures of others.
hen we first published our
Start Your Own Business
in 1998, we thought it would make a great reference for people who wanted to be their own boss. We offered advice on what steps to take, and what pitfalls to avoid. The book offers common sense approaches to a wide range of challenges facing the new entrepreneur, drawing solutions from the successes and failures of others.
Start Your Own Business
has been a phenomenal success. With more than 400,000 copies in circulation through four editions, it’s the best-selling business startup book of all time. Business is affected by everything from advances in social marketing to the iPhone, from law changes governing entrepreneurs to the impact of Google on building a customer base. These are fascinating, and exciting, times for the independent business owner.
has been a phenomenal success. With more than 400,000 copies in circulation through four editions, it’s the best-selling business startup book of all time. Business is affected by everything from advances in social marketing to the iPhone, from law changes governing entrepreneurs to the impact of Google on building a customer base. These are fascinating, and exciting, times for the independent business owner.
There’s no doubt that the recent recession has created the most challenging business environment in generations, affecting everyone from the self-employed to General Motors. While most people might see such a sour economy as a mountainous barrier to success, the true entrepreneur sees the opportunities, and navigates the passes through to the other side. Even in economic downturns those with vision, and drive, can thrive.
With that in mind, I welcome you to the fifth edition of
Start Your Own Business
, updated with insights on the latest trends—including an entirely new chapter on social media and how to make it work for your business. We’re also offering a somewhat longer view of what it takes to succeed. Earlier editions focused on the crucial startup phase. As an entrepreneur myself, I can tell you that starting a business is one thing, and nurturing it to robust health is something else. So we’ve also expanded portions of
Start Your Own Business
to include advice and guidance on surviving the crucial first three years.
Start Your Own Business
, updated with insights on the latest trends—including an entirely new chapter on social media and how to make it work for your business. We’re also offering a somewhat longer view of what it takes to succeed. Earlier editions focused on the crucial startup phase. As an entrepreneur myself, I can tell you that starting a business is one thing, and nurturing it to robust health is something else. So we’ve also expanded portions of
Start Your Own Business
to include advice and guidance on surviving the crucial first three years.
Few people realize that some 600,000 new businesses are born each year, and the vast majority of them succeed. I’ll let you in on a little secret about the winners. They succeed primarily because they prepare. And if
Start Your Own Business
does nothing else, it will give you the tools to build your own future and success. You can’t just
think
about that great idea for a business. Once your idea is in place, you need to burrow down into the details of what you need to know and do in order to achieve the entrepreneur’s ultimate goal—financial security while working for yourself.
Start Your Own Business
does nothing else, it will give you the tools to build your own future and success. You can’t just
think
about that great idea for a business. Once your idea is in place, you need to burrow down into the details of what you need to know and do in order to achieve the entrepreneur’s ultimate goal—financial security while working for yourself.
I’ve had my own successes and failures over the years, and some of the lessons from both types of experiences are in these pages. The staff at
Entrepreneur
, who also know a thing or two about what it takes to thrive, have added their considerable knowledge, too.
Start Your Own Business
contains the best of what we all have to offer, in clear and unvarnished language.
Entrepreneur
, who also know a thing or two about what it takes to thrive, have added their considerable knowledge, too.
Start Your Own Business
contains the best of what we all have to offer, in clear and unvarnished language.
All the best in your success.
—Peter Shea, CEO and owner of
Entrepreneur Media, Inc.
Entrepreneur Media, Inc.
ON YOUR MARK ...
Why did you pick up this book?
Perhaps you know you want to be an entrepreneur and take charge of your own life. You’ve already got a great idea for a business you’re sure will be a hit. Or perhaps you think, somewhere in the back of your mind, that maybe you might like to start your own business but you’re not sure what venture to start, what entrepreneurship is really like, and whether it’s for you.
Perhaps you know you want to be an entrepreneur and take charge of your own life. You’ve already got a great idea for a business you’re sure will be a hit. Or perhaps you think, somewhere in the back of your mind, that maybe you might like to start your own business but you’re not sure what venture to start, what entrepreneurship is really like, and whether it’s for you.
Whichever of these categories you fall into, you’ve come to the right place. In Part 1, “Think,” we’ll show you what it means to be an entrepreneur. Use our personal goals and objectives worksheet to decide if entrepreneurship is right for you. Don’t have a business idea, or not sure if your idea will fly? You’ll learn the secrets to spotting trends before they happen and for coming up with dozens of surefire business ideas. We’ll also discuss various ways of going into business, including part- and full-time entrepreneurship. Finally, we’ll show you the different options for startup, such as starting from scratch, purchasing an existing business, or buying into a franchise or business opportunity system.
Planning is key to every thriving business. In Part 2, “Plan,” you’ll learn just what you need to do to lay the groundwork for success. Find out how to pinpoint your target market, plus dozens of ways to do market research—from hiring experts to money-saving do-it-yourself tips. Since the name you choose can make or break your business, we share plenty of techniques for coming up with the perfect moniker—one that will attract customers to your company in droves. And don’t forget the nuts-and-bolts necessities like choosing a legal structure—corporation, partnership, sole proprietorship and more. You’ll discover all the information you need to guide you through these often confusing steps to startup.
A business plan is your road map to success, guiding the growth of your business at every stage along the way. We’ll show you how to craft a business plan that puts you on the fast track. Finally, find out why you need professional advisors to help you through your startup, and learn how to select an accountant and an attorney who can help you make money—without costing you a bundle.
Speaking of money, every entrepreneur knows that adequate startup capital is essential to success. But just where do you find that crucial cash? In Part 3, “Fund,” we give you the inside scoop on getting the money you need. Discover dozens of sources of capital. We show you secrets to financing your business yourself, how to tap into the most common source of startup financing (family and friends), plus places you may never have thought of to look for money.
Do you stand a chance of getting venture capital or attracting private investors? You’ll find out in this section. And if you’re looking for a loan, look no further for the secrets to finding the right bank. We explain what bankers look for when evaluating a loan application—and how to make sure yours makes the grade. Seeking money from Uncle Sam? You’ll learn all the details about dozens of loan programs from the government, including special assistance for women and minority entrepreneurs. Whatever your needs, you’re sure to find a financing source that’s right for you.
As they say, “there’s no time like the present,” so grab a cup of coffee, get comfortable, and let’s start creating your business!
part 1
THINK
chapter 1
INTRODUCTION
W
ith the purchase of this book, you’ve taken your first step on the road to entrepreneurship. It’s not a step to be taken lightly, which is why buying this book may be the smartest thing you’ll ever do for your business.
ith the purchase of this book, you’ve taken your first step on the road to entrepreneurship. It’s not a step to be taken lightly, which is why buying this book may be the smartest thing you’ll ever do for your business.
Start Your Own Business
can have a major impact on your life. We meet people all the time who tell us how this book or
Entrepreneur
magazine changed their lives—and few are sorry they took the leap into business ownership. Whether or not they have succeeded, almost no one regrets the journey.
can have a major impact on your life. We meet people all the time who tell us how this book or
Entrepreneur
magazine changed their lives—and few are sorry they took the leap into business ownership. Whether or not they have succeeded, almost no one regrets the journey.
Start Your Own Business
is designed as a road map to help you plan a course for your own journey to business ownership. We’re here to show you the best routes to take, help you avoid the potholes and road closures, and navigate the curves and detours.
is designed as a road map to help you plan a course for your own journey to business ownership. We’re here to show you the best routes to take, help you avoid the potholes and road closures, and navigate the curves and detours.
Some will tell you that the journey you’re about to take is a hazardous one—but not with us at your side!
Start Your Own Business
prepares you every step of the way. We’re here to instruct and encourage you, to show you new ways to doing things and remind you of the tried and true. You wouldn’t go on an adventure without the proper gear. Think of
Start Your Own Business
as part of your entrepreneurship gear kit. Refer to it every step of the way, starting with how to get an idea for a business to finally opening the doors to your new venture. Along the way, we provide lots of forms, worksheets and checklists you can actually use in your business to make sure you’re on the right track.
Start Your Own Business
prepares you every step of the way. We’re here to instruct and encourage you, to show you new ways to doing things and remind you of the tried and true. You wouldn’t go on an adventure without the proper gear. Think of
Start Your Own Business
as part of your entrepreneurship gear kit. Refer to it every step of the way, starting with how to get an idea for a business to finally opening the doors to your new venture. Along the way, we provide lots of forms, worksheets and checklists you can actually use in your business to make sure you’re on the right track.
Since business ideas, trends and strategies constantly change, we strive to keep
Start Your Own Business
up-to-date. For the fifth edition, we’ve updated and revised (or expanded) every chapter and added a lot of new ones, too. In fact, Part 7, “Engage,” is all new. The chapters in this section introduce you to the exciting world of social media and online advertising and marketing.
Start Your Own Business
up-to-date. For the fifth edition, we’ve updated and revised (or expanded) every chapter and added a lot of new ones, too. In fact, Part 7, “Engage,” is all new. The chapters in this section introduce you to the exciting world of social media and online advertising and marketing.
We start by showing you how to get visitors to your website, keep them there, and make sure they return for more. Next, we move onto social media marketing and networking. If you haven’t jumped on the social media bandwagon yet, your business can’t afford to be left behind. We show you how to use social tools to network with potential customers, and connect and engage with your audience because in today’s marketing landscape, that’s how brands are built.
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