Debt Free

What if you're trying to get a leg up by starting your own business? Not a project for the faint of heart, that one is. It scores high on potential though. Many enter the home business arena with big dreams but little or no idea of what they're really doing. Far from a recipe from getting debt free, such ignorance is really a recipe for disaster. The beauty of the Internet is that prospective and new business owners have a level of information at their fingertips that was undreamed of only a decade ago. The Internet is also, itself, an arena for new businesses. It's been a boon for those wanting to just dip their toe into the small business waters without having to dive right in.

That ease of entry has also been part of the curse for small business owners. Because it's so easy to enter the small business world now, it allows those without adequate preparation to jump right in, no matter their level of expertise or experience. A boon for some, and the success stories of those who do make it big draw in others like lobbyists to a congressional mixer. The American spirit of entrepreneurship and resourcefulness demand that we forge ahead into new frontiers. Small business is just the latest wilderness to conquer for the American adventurer.

Being involved in your own small business can be a great thing. The feeling of accomplishment and independence are second to none. To make it so, however, you need to jump in with both eyes open. The most important thing is planning. Before you make the decision to strike out on the trail of small business, you need a plan, otherwise you're throwing your start up capital in a Cuisinart and hitting “puree”. A detailed business plan will include all aspects of your business, such as sources of funds, uses of funds, a marketing plan (what will you be selling, who will you be selling it to, how will you promote it, and where will you sell it), 1,3 and 5 year financial plans, resource requirements (personnel, financial, equipment, real estate), etc. There are entire books written on how to make a good business plan, and some great business plan software is available too.

The bottom line is that a business plan will give you a path to follow. It will also help you think through all the details (there are many)of the journey on which you're about to embark. In addition, if you'll be seeking any funding, the investors or financial institutions will want to see it. You'll no doubt have to revise your business plan many times over the years as your business grows and evolves, and you should. Unlike the U.S. Constitution, your business plan is a living, breathing document.

Unless you are one of those who's accumulated enough wealth to have a year's living expenses or so, not including your new business capital, or your spouse makes enough to support the family, don't quit your day job just yet. If you're beginning a business with an existing customer base, and you can hit the ground running, you may be able to fudge this rule a bit. You'll have enough financial stress associated with your new business when it's in the start up phase, you don't need the additional stress personal finance problems can bring. Many businesses have been successfully bootstrapped with insufficient startup capital, but many more have dismally failed. Avoid having insufficient start up capital. Lack of capital is a very common mistake.

Once you've all your ducks in a row, start shooting. You'll probably have many people who say you're crazy for starting your own business, tell you to get a real job, or say you can't succeed. This is normal. It's the “crab in a barrel” syndrome. If there are a bunch of crabs in a barrel and one tries to climb out, the others will try pull it back in. That's what many friends and family will try, even if only in the guise of concern and caring. Don't listen! Having your own business can be one of the most rewarding and fulfilling experiences of your life, but you've got to stick to it. There will be times when wearing all those hats can make your head hurt, but you've got to just tough it out. It will take perseverance, focus and persistence, maybe more than you thought you had. You've got to have drive to succeed, and you need the will to win.

If you've planned well and you're offering something that people want (itself part of the planning process) you will succeed. You need to find what you can provide that people want or, use another winning strategy, make them want it. It's a combination of marketing and organization. If you don't think you have those talents, then maybe you shouldn't be doing this. On the other hand, you may surprise yourself. You may have an undiscovered talent that is waiting to be set free. You may be able to make up for a relative lack of talent with persistence and hard work. Many have taken that path to success. The reality is that everybody has some sort of talent, and you're no different. You've got to get started, go for it, and don't ever stop. Don't expect overnight success. It may take years before you find yourself enjoying the superb vistas from atop the mountain, but you'll enjoy them.