QuasiPreneur.com

Five essentials for the entrepreneur

Five essentials for the entrepreneur

Sunday, November 16, 2008 7:08 AM CST

The economy may be tanking, but new research from Barclays suggests that entrepreneurs are far from being discouraged by reports of an economic slowdown. They report an estimated 98,000 new start-ups formed in the first three months of 2008, which is the highest number of start-ups in the last three quarters.

According to statistics, the most popular industries for start-ups were business and financial services, construction and the retail sector. As John Davis, marketing director for local business at Barclays said, “…there is a feeling there is never a bad time to start a good business.”

Now there is a new group in Milwaukee helping entrepreneurs do exactly that. Biz- Starts Milwaukee launched last month with the resources, networking and know how to help create a vibrant, innovative and prosperous entrepreneurial business climate. The goal of BizStarts is to create an infrastructure designed to nurture and grow innovative, fast-track companies.

The Milwaukee 7 region has long ranked in the lowest third of states for business start-ups. This means slower job and wage growth as most new jobs are created by small companies.

BizStarts know that the majority of new jobs are created by entrepreneurial companies and jobs are what build a strong community. They have identified five essentials for an entrepreneur to start a business:

1. A great idea that fills a need. Successful entrepreneurs identify a “burning customer need” and their product or service must meet that need. Dan Steininger, one of the BizStart founders says, “The product or service must have market differentiation; something unique that distinguishes them in the market place. And most importantly, that delivers the customers.”

Make sure you do your homework. You need to understand how the competition is meeting the need the need today and how your product or service must perform and be priced in order to compete. Who is your target buyer and how do you reach them? And most importantly, why should they buy from you?

2. A business plan. Statistics from the Small Business Administration indicate that a business with a plan is 40 percent more likely to survive than a business without a plan, yet 60 percent of small businesses do not have a written business plan.

A comprehensive plan is essential and includes a mission statement, business description, market analysis, marketing plan, executive summary, management and operations and financial projections. A business plan should be a living document with frequent review and updates to stay current.

For tools to launch your business, visit: www.bizstartsmilwaukee.com.

3. Capital. Many entrepreneurs start their companies by “bootstrapping,” using personal resources along with sales revenue to sustain and grow a company. This offers them flexibility and control without answering to outside investors. Numerous successful companies including Dell Computers were founded this way.

But to grow past the initial level, an entrepreneur may need outside investors and angel capital to grow. BizStarts Milwaukee helps network entrepreneurs to investors who are looking for start up companies.

4. Mentors. I have owned and operated three businesses and come from a family of entrepreneurs. My mother owned her own company, and all of my siblings are business owners.

When I wanted to start my latest business, Great Lakes Consulting Group, I received nothing but encouragement and advice. Not all new entrepreneurs are so fortunate. Too often, more people give you reasons why it won’t work than why it could.

Having mentors and guidance from people who have been there is invaluable. They provide the answers, the resources, and encouragement to help new business owners be successful. Mentors are the role models that demonstrate that it can be done.

5. Tenacity. Owning your own business can be a roller coaster of new contracts or business slowdowns. One of the differences between a successful business and one that does not get off the ground is whether the owner(s) gives up. Too many people give up just before a business is profitable.

Successful entrepreneurs know that it takes tenacity to build a business with the eye on the prize. They turn discouragement into energy and work harder to overcome obstacles.

I have found that you have to work at least half-time — any 12 hours per day will do.

Barbara Bartlein, CSP, is The People Pro ®, and President of Great Lakes Consulting Group, LLC, which helps businesses sell more goods and services by developing people. She presents keynotes and seminars on stress management, balance, productivity, customer service and leadership. She can be reached at 888-747-9953, or by e-mail at barb@ThePeoplePro. com. Visit her Web site at http://www.thepeoplepro.com.