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HOW TO START A BUSINESS : What it Takes to Start a BusinessWhen you were young you went out to start a business lawn-mowing on the weekends — and hired friends to work for you. Or you franchised your lawn-mowing business idea to other kids in the neighborhood. "It's very common for adult entrepreneurs to be those who started lemonade stands or went house-to-house trying to make money when they were children," says Leann Mischel, a management professor and entrepreneur at Susquehanna University's Sigmund Weis School of Business. Entrepreneurial genes SMALL BUSINESS CONECTION: Tips and tricks to start a business In the nurture vs. nature debate, there's new research showing that the drive to start a business may be genetic. Researchers compared self-employment among 609 pairs of identical twins and 657 pairs of fraternal twins in the United Kingdom. They found that nearly half — 48% — of an individual's tendency to be self-employed is genetic. For example, genes leading someone to be extroverted are key to salesmanship — a vital trait among entrepreneurs, says Scott Shane, an entrepreneurship professor at Case Western Reserve University and one of the study's authors. There's also evidence people with dyslexia are more likely to become entrepreneurs. London's Cass Business School says entrepreneurs in a study of 215 managers were five times as likely as corporate managers to have dyslexia. Why? Dyslexia forces people to hunt for creative ways to steer through life. Famous entrepreneurs with dyslexia include discount stockbroker Charles Schwab and Virgin's Richard Branson. Start a business with family support Prepare for crazy-long hours, including weekends, during a business's start-up phase — a work load that's also taxing for an entrepreneur's family. And vacations? What are those? About two-thirds of small business owners said they planned to take a vacation of a week or more this summer, but more than half planned to check in with their companies at least once daily, American Express found in a survey. "Starting a business can require 80-to-100-hour weeks," Mark Ciavarella, an assistant management professor at Bucknell University, said in an e-mail. "Many spouses/partners don't understand this and won't tolerate it." As start-up adviser Ralph Sherman of Createabank near Detroit said, you know you're an entrepreneur when "your family has been looking for your picture on a milk carton." Money doesn't motivate when you start a business Two of the USA's most famous entrepreneurs — Bill Gates at Microsoft and Warren Buffett at Berkshire Hathaway — are also the two richest Americans. But they were driven to create great companies, not just huge fortunes. Indeed, Gates and Buffett are combining their riches to create a $60 billion philanthropic powerhouse in the Bill & Melinda Gates Foundation. "Entrepreneurs are much more interested in 'wealth' rather than 'riches,' " says Scott Laughlin, director of the University of Maryland's tech entrepreneurship program. Riches are piles of money, he says; wealth is broader, encompassing less-tangible rewards such as respect and independence. So, would-be entrepreneurs need to examine how they expect to be rewarded. "If the compensation is just cash," Laughlin says, "then the practice of entrepreneurship will not be very rewarding." Passion You don't just think you've built a better mousetrap — you feel it in your gut, and know the world will be much better if only you can get your idea to market. "When something is important to you, then you know it with your heart as well as your brain," says Bob Barbato, a management and entrepreneurship professor at Rochester Institute of Technology. "You infect others with your passion, and they believe in you." The flip side of passion is impatience with other people's ideas, says Amy Millman, president of Springboard Enterprises, which helps start-ups led by women find investors. The would-be entrepreneur's attitude, Millman says: "I know what I want to do, and I know how to do it." Conventional wisdom 20 years ago said a black woman from rural Mississippi would have a tough time launching a career as a TV host on even the lowest-rated show. But one such woman went to launch her own company, Harpo Productions. And now, Oprah Winfrey is one of TV's biggest stars, ruling over an estimated $1.4 billion fortune. Pragmatism As passionate as entrepreneurs must be to drive start-ups forward, they also know when to cut losses. "Know when to give up on an idea," says Lou Marino, an associate professor of entrepreneurship at the University of Alabama at Tuscaloosa. "Not every idea an entrepreneur has is going to be a home run." Giving up doesn't necessarily mean the business idea was bad. Instead, it might be the right idea at the wrong time — as was the case with thousands of dot-coms launched in the late 1990s before household high-speed Internet access became widespread, making viable all the offerings those dot-coms hoped to sell. Risk-taking You know start-up success isn't guaranteed. Still, you don't flinch at the thought of betting your severance pay or retirement savings on self-employment. Would-be entrepreneurs are calculated risk-takers — like world-class mountaineers, says Vineet Buch, a principal at venture-capital firm BlueRun Ventures in Silicon Valley's Menlo Park. "They hammer in protection on the way to the top, but don't let the thought of falling slow their steps as the slope gets steeper and narrower," he says. "True entrepreneurs strive to control risk while still thriving on it." Martha Stewart risked leaving the safety net of publishing giant Time in 1996 to launch her Martha Stewart Living Omnimedia. She successfully took that company public, becoming one of the world's most famous entrepreneurs. Strong ethics Start-ups depend heavily on good first impressions when entrepreneurs hire employees, court investors and line up customers. In a hyper-competitive economy, any whiff of dishonesty can deep-six a new enterprise. Penn State University's Anthony Warren, who advises venture capitalists, says honesty and trustworthiness are high on the list of attributes he looks for when he considers recommending a venture to potential investors. "Who wants to be in business with someone you cannot fully trust, especially in the start-up phase where the stress levels are high?" says Warren, director of the school's Farrell Center for Corporate Innovation and Entrepreneurship. The founders of Google, Sergey Brin and Larry Page, famously created a "don't be evil" mantra when they took their online search giant public. Tech ease Feeling comfortable with technology is crucial, because computers, software and other gadgets are key to launching a business in the fastest-growing economy, the service sector. Start-up costs there have plummeted as prices fell for powerful computers and software. Those lower prices came as the Internet let entrepreneurs tap global markets for engineering, accounting and other services. Setting up a small office with a laptop, fax machine, cellphone and other gizmos costs as little as $5,000. Add a professional-looking website for $500 or so, and you can compete with bigger, more established companies. But you can't take advantage of those lower costs if you aren't comfortable using popular word-processing, database, spreadsheet and presentation programs. Tenacity Sometimes the best business ideas fail to take hold — not because there isn't demand, but because the start-up was undercapitalized, or the entrepreneur lacked management know-how or simply gave up too soon. "If you really believe in it, you keep fighting for it," says Earl "Butch" Graves, president and CEO of Black Enterprise, the magazine founded by his father, Earl Sr. One-third of new small employers fail within two years; and 56% are toast after four years, says the Small Business Administration. About 672,000 small employers launched last year — but 545,000 others closed, the SBA says. A nobody entrepreneur who started a variety store in Arkansas in 1945 eventually lost the business when his landlord wouldn't renew his lease. But he didn't give up. "I've never been one to dwell on reverses," Sam Walton recalled in his autobiography, "and I didn't do so then." The company he fought to start, Wal-Mart, is now the USA's biggest private employer, with more than 1.3 million workers. Jim Hopkins 10/25/2006 - USAToday.com How to Start a Small BusinessYou have thought out an angle for starting your own business that is going to revolutionize the industry. You're smart, hard-working, and driven to succeed. Your friends ...Why Start a Business?Though to start your own business does mean that you'll be stepping away from the relative security of a regular paycheck, having the desire to own and start a new business...Starting a Home-Based BusinessStarting a home-based business can be a little complicated. The checklist below covers the most important sujects that you will need to consider starting your own business...Partnership for Business a Good Idea?Business partnerships have been an important part of entrepreneurship and startup success. The reasons are simple: complementary skill sets, shared equipment ...What it Takes to Start a BusinessWhat attributes suggest someone's a good candidate to start their own business? ...To Start a New Business, Appearance is EverythingThe success of starting a new business depends largely on the owner's ability to convince potential employees or customers that the business is operational,...Before You Start a BusinessIt's a terrific idea for aspiring entrepreneurs to work in the industry they want to start a business, whether they are college business majors...Choosing Your Business NameKeep in mind the availability of a domain name when choosing your business name. Also ask a friend or relative with a knack for words to help you brainstorm....Business Start-up ChecklistUse this small business start-up checklist make sure you don't miss any important steps. Taking a college business course would help you considerabley also....Other related Articles: Best Businesses to Start in a Recession August 11, 2010Choosing to start a business in a recession can be risky if you don't know what you are doing. Do your research, information and do some planning. Some small businesses thrive during a difficult economy. These businesses are called counter-cyclical businesses...Getting Money to Start a Business July 1, 2010Getting money to start a business will be tough in a down economy, but not impossible. Depending on the type of business and the amount needed, you may need to acquire...What Home Business Should I Start - Service, Retail, or Product Based Feb 3, 2010Any good home business begins with a good idea. As you brainstorm, plan and prepare to start your new home-based business, you must first understand what kind of business...How to Run a Business from Home Jan 13, 2010Below are 9 helpful suggestions from other business savy entrepreneurs on how to run a business from home ...Start-Up a New Business Jan 7, 2010Over the past 15 years, small business has generated 64% of America's net new jobs, and more than half of American nonfarm GDP is created by small business. Why not start up a new business?...How to Fund a Start-Up Business Oct 13, 2009Here are some sources for funding a small-business for start-up business owners ...The Basics of Starting a Business Sept 3, 2009You’ve made the huge decision to start a business. Most efforts to start a business end in failure, but with the right business idea you can become successful. ...How to Start a Profitable Home Based Business August 17, 2009More and more people are investigating the possibilities of starting their own extra-income profitable home based business. Most of these part-time endeavors...5 Steps to Building a Successful Niche Business August 10, 2009Building a successful niche business with products and services can have the potential to generate big bucks if they capture the hearts, minds and wallets of a...10 Worst Business Partners For Your Start-Up July 3, 2009Business Partnerships can turn out to be a blessing or a curse. For every thriving partnership featured in Entrepreneur, ...How to Build a Family Business May 25, 2009More than 80% of businesses in America are considered family businesses, according to the Cox Family Enterprise Center. But as Professor ...Selecting Your Type of Business May 20, 2009Indeed starting a business and what type of business is one of the most challenging tasks anyone can undertake. One must balance ...Right time to start a business? March 29, 2009I am in my 20s and recently laid off. I have always been interested in starting a business, but with the state of the economy, I am a little unsure ...Start a Business in a Recession March 24, 2009Believe it or not but some entrepreneurs are actually looking to start a business in these economic times. ...How to Start a Start-upAndy McLoughlin spoke a little while ago about how he started a business, Huddle.net, from a simple business idea in a pub to a fully working new business... |
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