10 Things to Think About Before You Start a Business!

Welcome!  Post #1 and I thought it would be appropriate to start with a question that I get asked very often in my role as an Executive Coach and Business Development Coach..... "Should I start my own business?"

The answer is ---that depends.  Now it may NOT depend on what you think it does i.e. 'Is there a market for my product? Do I have a list of ready buyers?  How much money will it take?'  etc. etc.  While these (and many other) questions are important the FIRST thing you must do is look in the mirror and ask some questions about YOU!

Al Lipper,  a coach for people wanting to open Yoga Studios, has written an excellent article called "Top 10 Things to Consider When Opening a Yoga Studio" that I regularly email to clients who ask this question because what Mr. Lipper talks about are really things to consider when opening ANY business!

I have partially reprinted it below (the full article is at www.centeredbusiness.com/ Mr. Lipper's website for Yoga Studio Owners)

A small business can have a great product, a great location, a great value proposition but if the founder and CEO is not in the right mindset, has not made a plan and is not willing to deal with some speed bumps in the road there can be trouble.

Have a look at these 10 questions and ask yourself if YOU have what it takes or if you might be better off working for someone else.  Just like being famous being an entrepreneur has benefits and detriments.

Famous people get money, free stuff and many other things but they also give up privacy and often can't do simple things like shopping or walking their dog without being bothered. 

Entrepreneurs get control, freedom and the possibility to make more money than they could working for someone but they take on quite a bit of responsibility, and may need to deal with things (like accounting for example) that are out of their comfort zone. 

By the way if you would like to have a Business Coach and Career Coach who has started built and sold 4 companies in 3 different countries to guide you in this decision you can visit me at www.CoachWithMike.com and schedule a free consultation. 

So have a look and decide---is starting a business for you?

With caring and best wishes for your success,

Mike Mataraza

Consideration #1: Are you willing to work long hours in the beginning? Every small business owner will tell you about the late nights and weekends spent on building a business from scratch. It’s just plain hard work. But, it has great freedom as well.

Consideration #2: Are you comfortable learning about finances, budgeting and bookkeeping? For better or worse, money is the lifeblood of every business. Without it, the business fails instantly. To succeed, you need to have a moderate handle on finances. 

Consideration #3: Are you able to accept that business will never be entirely smooth, but rather that it is wrought with some degree bumps and potholes, and that is just part of owning a business? It is estimated that an average U.S. business faces a “crisis” three to four times per year. This might be a key employee quitting, an IRS audit, a major unexpected expense, etc. 

In addition, there are “daily hassles.” An instructor is late, someone’s check bounced, the stereo doesn’t work and so on. This is just part of business.

 Consideration #4: Do you have at least 50% more money available than it seems like you’ll need to get started? Most small businesses underestimate their expenses (and overestimate profits) for the first few years.

Consideration #5: Are you willing to learn about marketing, or do you have the money to hire a professional marketer who will do this for you? I know, marketing makes you think of tele-marketers and used car salesmen. These are just poor examples of marketing, just as a Big Mac is a poor example of gourmet food, yet it is still food (technically). 

Consideration #6: Can you accept that while Yoga may incorporate energy, spirit and flow, running a business adds a new kind of energy to the mix: money. If you believe your practice is above needing to worry about money, you may be reassured to know that you are not alone. What may be less reassuring is that very few studio owners who hold this perspective stay in business for more than a couple of years. 

Consideration #7: Are you really passionate, not just about practicing Yoga, but about sharing the art of Yoga with others? Running a Yoga studio is about sharing your practice with others. 

Consideration #8: Are you willing to make mistakes and learn from them? Success is about mistakes. Just as Thomas Edison tried over a thousand different materials for the filament of the light bulb before discovering one that worked, such is business. 

Success is not about doing it perfectly the first time – striving for this leads to mediocrity. Success is made of trying, failing and learning; then taking what you learned and doing it better the next time. 

Consideration #9: Are you able to do this without destroying your personal life, should it fail? While no one plans for a new business to fail, and it’s certainly the last thing you want to think about, it does sometimes happen. Plan your divorce while you are still in love. 

In other words, you need to design an exit strategy for the business in the beginning. You don’t want to lose your house and have to declare bankruptcy if things don’t pan out. Do your best to make sure you can personally survive even if the business does not. If you can’t, then this may not be the best time to start a studio, or maybe finding a partner or investor to share the burden would help.

Consideration #10: Are you willing to make a thorough business plan? I believe this is the single most important item on the list. The business plan doesn’t need to be in the form a bank needs to lend you money, but it should be complete. 

It is unfortunately all too true that “failing to plan is planning to fail.” A real business plan outlines the way your studio will operate. It defines the kind of people who will come to your classes and private sessions, it estimates how many clients and students you need each month in order to pay the bills. It is like having a map with you when you are on a long road trip. 

By the way, the reason that banks want to see a business plan before lending money is because they know that most businesses that don’t have one will end up failing.

So what do you say?  Is it for someone else but not for you or are you Ready to Rock?

Mike