The Entrepreneur's Dream

Written by Gina Maselli

This article is courtesy of Christian Single.

Attorney Cynthia McKay desperately wanted a change. After achieving success in the legal profession, the thrill was gone. She was tired of the competitive atmosphere. One afternoon, as she considered her future, her doorbell rang. A delivery person stood there with a less-than-impressive gift basket that offered little satisfaction for the receiver or the sender. That day changed McKay's life. "It was then that I decided to quit my job, despite an immense amount of debt, and start my new business," she says.
 

Even though she didn't have formal training in retail or creative design, McKay had discovered a need in the market and decided to fill it. Le Gourmet Gift Basket, Inc., was born. Today, not only does McKay enjoy the rewards as the president and CEO of a multimillion dollar company, but she also enjoys helping others achieve their own success through franchise opportunities.
 
The decision to start a new business is a difficult one. Since one study by the Small Business Administration shows that as many as 60 percent of new businesses fail in the first six years, and other studies document that 82 percent will fail within 10 years, the dream of owning a successful new business may never become a reality. For those who aren't dissuaded by these statistics, careful consideration and planning are musts.

The Good, the Bad, and the Ugly
On one hand, business owners enjoy the freedom of operating their own business, setting their own hours, and creating their own work environments. And if the business is successful, they have the satisfaction of knowing that their efforts were the direct result. In other words, the sky's the limit.
 
On the other hand, as McKay discovered, "If you are your own boss, you're 100 percent responsible for everything." Though owners can achieve the highest success, they can also have the lowest defeat. Everything rests on their shoulders.
 
As all business owners can attest, owning a business brings its own unique stress. According to Larry Bennett, veteran entrepreneur and director of entrepreneurship programs at Johnson and Wales University, these stresses include financial pressures from bills and customers who don't pay. McKay agrees that financial demands definitely exist, adding, "Don't plan on taking a vacation anytime soon, and don't count on a salary in the near future."
 
Bennett warns that many business owners face a sense of isolation because of the lack of social interaction. Long hours and endless duties make personal time a luxury. This is an especially important concern for those with families. Again, McKay agrees that "your family life will be severely disrupted."
 
Savvy business owners, or those hoping to achieve their dream of owning their own business, need to be realistic about where their company will fit within the marketplace. Bennett notes that even if a new business initially has advantages over the more established companies, it will have a harder time maintaining those advantages because it won't have as many resources as larger competitors. Detailed planning must be done in order for a business to overcome such obstacles and enjoy success.

The Start-Up
For those who are ready to face the challenges of starting their own business, maybe yours is more a question of when.
 
Susan Turton, proprietor of Turton Tea, relied on the demand for her business to dictate its development and growth. Her mother, Ruth Turton, is known as "The First Lady of Tea" because of her vast knowledge on the subject. Speaking engagements around the country attracted buyers who were looking for the quality product about which she spoke. Because of Susan's marketing background and passion for the product, she began conducting taste tests following her mother's lectures and eventually began selling quality tea products. "I am a firm believer in expanding off the profit [of your business]. I think it's a more practical way to grow and certainly less risky," she says.
 
Bennett admits that "there is no ironclad, surefire sign that I have been able to identify [for when it's time to go out on your own]," but he does acknowledge that future business owners should research their intended areas of business before jumping in. "Successful business starters are qualified risk takers and do not just rely on 'gut instinct.'"

One Step at a Time
Those considering a new business would be wise to learn about the industry in which they hope to compete. Bennett suggests that future entrepreneurs learn the basics of business planning, marketing research (including competitive research), and operational planning. Turton agrees, "I always advise anyone considering going into business to begin with the U.S. Small Business Administration as they have an enormous amount of resources and educational classes available." This research will help entrepreneurs develop a detailed business plan and prepare for the ups and downs of business ownership.
 
Of course, having enough money to begin a new venture is a large consideration — something McKay understands well. That's why she suggests that entrepreneurs consider all the costs of starting and operating their new business. Things like insurance, employee salaries, taxes, workers compensation, and trade fixtures are just a few costs that should be measured.

Still Determined?
Once all the planning and education are finished, if a person still finds owning a business appealing, then he or she is in for an exciting journey into the world of entrepreneurship. Though it will take a lot of time and resources, it can be one of the most rewarding adventures a person will have. As Bennett says, "While entrepreneurship is most definitely not for everyone, it can be extraordinarily satisfying."

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