Why would anyone want to start up their own business? Within the first eighteen months, over half of small businesses fail.
Still the people who have the guts (or are crazy enough) to start their own businesses find ways to prevail. Some just need the freedom. Others believe that they can do it better than the next guy. And most have supreme confidence in their abilities, believing that they can do anything that they set their minds to.
3 comments:
I thought this was a pretty cool addition to this week's Green Page. I've seen quite a few "how to start a business" articles, and written a business plan for a high school project, and this one hits most of the bases. I wish that they had a bit more of a warning though, about how to protect yourself in the event of a business failing. While every entrepreneur wants to throw everything they have into their business, it can be dangerous to, for instance, use your checking account or savings as your only source of funding. Often, if you've depleted those, it's more difficult to get a loan or credit line than if you went to the bank with cash in hand and applied for one. Growing up in a resort community where 85% of businesses' incomes were made in 10 weeks of the year, I've seen a lot of really smart, dedicated people get burned by over-extending themselves too early.
This is an incredibly useful article for all those up-and-coming future business owners out there who aren't entirely sure what to expect or know going into that whole process. Obviously not having done much business myself other than a handful of veeerrry successful lemonade stands in my youth, I took a lot out of this article. Its very good to know what to expect going into this situation so you can avoid getting burned like Lindsay mentions happens sometimes in her community.
I don’t know much about starting a business, but I am willing to bet that some businesses are easier and less risky to get off the ground than others.
I’m wondering how these tips apply to somebody who wants to start, say, a commercial scene shop, or a production company. They specifically mention that a company shouldn’t want their assets tied up in inventory and receivables for too long. A commercial shop, mid build, may literally have all of their reserve capital invested in a build. They may only have received 33% of their contract before delivery, and theatre being what it is, they could go under through no fault of their own.
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