800,000 Americans have already lost their jobs this year and the tragic figure is expected to rise to 1 million by late December.
Due to outsourcing and downsizing, real employment options might not exist. For many, there is no real alternative but to start a small business. Small Biz Startup presents a FREE Fill-in-the-Blank How-ToReally Start Your Small Biz Workbook available at our partner blog: www.smallbizstartupworkbook.blogspot.com
The Small Biz Startup Workbook attempts to demystify entrepreneurship for first-time small business owners and includes strategies, tips, techniques and checklists on finding the perfect business, choosing a name and logo, organizing the launch, investigating business opportunities and franchises, setting up an accounting system, and much more.
We offer it to you with the hope that it will be your small business partner as you embark on this exciting Be-Your-Own-Boss journey.
A fast way to start a small business is to purchase a “business opportunity” or “turnkey” package. These “kits” come with a manual, DVD, inventory, promotional products, ads, and marketing & bookkeeping software, too.They often come with a lot less!There are no royalties to pay as with a franchise, but there is often nofollow-up support such as an 800-hotline for help, etc.
The theory with a “turnkey biz opp package” is that all you have to do to launch the business is buy the package, read the material, study the manual, "turn the key" and open your business. Some of these start-up business opportunity packages cost $100 or less. Others cost thousands of dollars. But there is one common denominator: the opportunity should be investigated. Remember, let the buyer beware.
I sent for an “envelope stuffing biz opp” to see what it was: $25 and all I got was a letter suggesting I place ads in magazines and online offering “Envelope Stuffing From Home Business Opportunities”!!!!! There are several ways to investigate a business opportunity. Do this before you send any $$$$ to anyone:
1. Call the Better Business Bureau in the city where the company is based. Ask if they have a "reliability report" filed on the company. This report provides information on the company and will include whether or not complaints have been filed on the company. It will also let you know how the company handled those complaints. Also visit: www.fraud.org for the National Fraud Information Center and phone the Call for Action Hotline at 301-652-HELP. 2. Call the Chamber of Commerce in the town where the company is based. Just because the company might not be a member doesn't mean they aren't reputable. But ask the Chamber of Commerce if they know of any reason why someone shouldn't do business with them. It doesn't hurt to hear what the word of mouth is about a particular enterprise. 3. Call the Attorney General's office in your state--often located in the State Capitol's office. Also check with the Secretary of State's office to see if there are any complaints filed on the company or if there are investigations pending. 4. Where did you hear about the business opportunity? At a local trade show? Through an ad? If it's in an ad, call the magazine who carried the ad and ask to speak to the advertising department. Do they have information on the company? How long have they been in business? Do they pay their bills on time? Has the magazine or trade sponsor received any complaints about the company?
5. Use your judgment. As you study the ad, ask yourself, "can I figure out what the business opportunity is from this ad?" If not, then run in the other direction. They are trying to be evasive. If you can't contact the company and get more information on what it is you are sending money to receive, then don't send a dime. Remember the old line, if it sounds too good to be true, it probably is! Not in every case, but in many. 6. Ask the company offering the business opportunity package if you can get a list of folks whoinvested in the package during the last two years. If they are legit, and if they are proud of what they are offering, they will be happy to put you in touch with their satisfied customers. If they won't do this, there very likely is something shady going on with that particular business opportunity program. Companies that have a legitimate business opportunity package for you to look over should not be scared or dismayed if you want to receive some free additional information about the company before you invest in the program. This is a perfectly acceptable request.
7. Perform a Google search on the company and see what turns up. 8. The Federal Trade Commission offers a free package of information about the FTC Franchise and Business Opportunity Rule. Write to: Public Reference Branch, Federal Trade Commission, Washington, DC 20580 or call the FTC at 202-326-2222.
9. Use your instincts. If the opportunity doesn't sound or seem just right to you, stay away. Do some more research before you get involved with the company and follow tips one through 8 to conduct your "due diligence" investigation about the business and the specific opportunity. 10.Don't send money unless you completely understand what you are buying into, and even then, check it out before you send any money.
The Great American Small Business Challenge is a new, national non-profit event, co-sponsored by over 25 SBA funded Small Business Development Centers. The Challenge has been created to help small business owners develop the essential leadership skills they need to cope with the current economic crisis. All Challenge participants receive free access to valuable organizational-improvement software, leadership-training and support.
"Small Business owners feel like they hit a brick wall. Sales are slipping, accounts receivables are mounting and vendors are tightening their credit terms. To survive the current economic downturn companies need to operate at peak performance," says Michael Kramer, co-founder of the Great American Small Business Challenge.
The Great American Small Business Challenge is a new, national, non-profit event created to help small business owners develop the essential leadership skills they need to create a flexible, resilient and sustainable company. The Challenge is co-sponsored by over 25 SBA funded Small Business Development Centers who provide Challenge participants with free access to valuable organizational-improvement software, leadership-training and support.
According to data collected from the US Department of Commerce and the Small Business Administration, there are over 25 million small businesses in the United States. Small businesses employ over 54 million Americans and contribute 40% of our Gross National Product.
"Considering the important role small businesses play in our economy, not enough is being done to help them maximize their success," says Jean Kulig-Tucker, co-founder of the Challenge. "The Challenge has been created to give small business owners the practical tools they need to streamline their operations so they can thrive in any economy," emphasizes Kulig-Tucker.Small Businesses can signup for the Challenge at The Great American Small Business Challenge web site: www.TheGreatAmericanSmallBusinessChallenge.com.
I was privileged to interview Ben Cohen & Jerry Greenfield about how they parlayed a $5 correspondence course in ice cream making from Penn State University into the current global giving empire now run by Unilever.
When asked what was the single most valuable piece of advice they could offer startup entrepreneurs, they said there were two thoughts they wanted to impart: 1. Be wary of family & friends who quickly become naysayers: Ben & Jerry said when they announced they were learning how to make ice cream to possibly start a small business, everyone was supportive; 'oh, yeah, go for it,' and all that--but the day they signed a lease on a space and started cleaning it up to actually begin the business, Ben & Jerry experienced the jealousy of former supporters. Be careful when this happens--and it usually will--because human nature is competitive. Even those who love and care about you will try and hold you back from your dream. Ben & Jerry said, stay strong, to fight through the nay saying!
2. Even if you have nothing going for you, and want to start a small business: Just Start! They advise, don't let the fact that you have no outside facility or lavish equipment hold you back; if you have a passion for an idea you believe in, then just start--start at your kitchen table or sell your t-shirts or whatever from the trunk of your car, but Just Start! If you believe in it, everything will fall into place.
More than 800,000 hard working Americans have lost their jobs this year and that figure is estimated to hit more than 1 million as we approach year-end pink slips.Many of our newly unemployed will never be able to transfer their knowledge into a similar position for a comparable salary—the only solution might be to start a small business.
It’s a small world after all--a small business world,that is. It is small business that is fueling our economy today not the Fortune 500 giants. In fact, small businesses account for about 90% of all new jobs created.Small business owners are the innovators who bring us inventions, and faster,cheaper, smarter ways to get from A to B.In the past two decades we’ve witnessed an explosion in entrepreneurship.
Everyone dreams of being his or her own boss--and for many good reasons.Being one’s own boss will always be associated with freedom and to a great extent, pure joy and satisfaction. It is difficult for employees to find this satisfaction on their jobs working for others.
For a long time, American workers have not been able to rely on the comfort and security once associated in working for a mega-giant corporation. There was a time when employees could count on protected pensions, health care and job security.
At the close of each year, CEOs and top management still pocket multi-million dollar profits, while the workers who drive corporations, teeter on shaky ground.We’re all too familiar with the devastation caused by layoffs, plant closings and corporate downsizing in the last few years. Since 1979, 50 million Americans have watched their jobs vanish, and according to The New York Times, only 29 million have replaced them.
We’re now searching for fulfillment and livelihood in new places, in new ways. We’d rather work 14 hours a day for ourselves doing something we love than work for “the man”. Having a small business means freedom from the 9 to 5 shackles. We’d gladly work twice as hard in our own venture.Owning a small business gives us pride and identity.
In the 19th century, Americans worked and plied their trades. Villages usually featured one shoemaker, one clothing retailer, one grocer, and so on down the line. Late 19th and early 20th century entrepreneurs ventured into oil, steel and railways and made a bundle overnight. They struck gold.
Throughout the first half of the 20th century, Americans fulfilled dreams by taking over the family business. After World War II new ideas, technologies and politics came into place changing the business climate as well.
Sons and daughters were no longer content to work in the family business. College was the dream and working for a large corporation became the fantasy.Business students earned MBAs and turned their sheepskins into big buck fortunes. But with the greed of the 1980s came the stock market crash and insider trading scams.
Social awareness, invisible since the 1960s, turned many of us off to the notion of big business. Government let us down, too.Environmental devastation along with concern for human needs, such as health care and shelter, took center stage.
Global alarms on AIDS, famine and natural disasters brought us closer together.Americans started to reject the notion of the big business machine and once again moved toward small business.
We watched garage-based ventures like Apple and Microsoft become world-class empires. It was proof that entrepreneurship--the New American Dream--was alive and well. Advances in technology have made it easy for small businesses to be launched from home.
With the Internet, It’s never been easier to be an “Open Collar” worker than right now and it gets less difficult all the time as one-person operations run from a kitchen table rack up profits and respect.
Running a business is fun and exciting. It has been written and said time and again: If you choose something you love to do, you will love working on it, at it, with it, for it. The money will follow. I hope this blog will serve as your "partner" as you begin your Small Business Journey!
In starting your small business, you'll have lots of details to check and fine-tune. Here is a checklist of 10 things you should do as you prepare to be your own boss.
1. Choose a business. What are your passions, interests, hobbies? What are you good at? Make a list of INTERESTS and another list of SKILLS/TALENTS. Find a common denominator on those lists and that could very well be a great choice for your new venture. (Example: you love decorating/interior design & you're good at it--consider starting your own service..or... Everyone loves your spaghetti sauce--would you enjoy making it and bottling it for sales in local markets and online? You love sports--why not explore starting a personalized products company that deals in putting logos and monograms on jackets, caps, etc.)
2.Pick a name you can live with as you grow and expand. For example, Gary’s Hedge Fund sounds like a great name for a whoesale nursery that sells hedges and shrubs, but what about when Gary expands into flowers, herbs, fences and more? Gary’s North Fork Landscaping might make it easier so that he won’t have to change his website name, etc. (Use an easy, cost effective web hosting service such as Web Hosting from Google.com to set up a basic website.)
3. File a "doing business as" form with your county clerk's office so that you can open a business bank account. The county clerk is usually located in the largest town/city in your county.
4. Open a business checking account. You'll need to have already completed completed the "doing business as" form process and have all the proper notarized items in order to open a business checking account in the name of your new small business.
5. Prepare a marketing plan and outline ways you will generate business.
6. Brush up on basic accounting and bookkeeping techniques and choose a system--that you plan to follow. When you file your taxes, however, it is worth it to use an accountant that specializes in small business so that you can maximize deductions, etc.
7. Call the local Small Business Administration office in your area. Ask about their free programs, literature and seminars. Go online and find other local resources. Visit www.sba.gov/.
8. Go online to brush up techniques you need to know: marketing, advertising, etc.
9. Write a business plan. It can be 2 or 20 pages, but a good business plan will help you answer all the questions you need to know about your business. 10. Investigate all options to generate business. Should you offer discount coupons on your website? Participate in local nonprofits that need help? Book yourself on local TV shows? Add a podcast to your blog? All of these techniques will be explored on this blog.
*If you are going to be working with food preparation, investigate whether or not you need a food handler’s license. Your county clerk or local hospital can help you on this one.
*Investigate getting a tax resale number so that you don’t have to pay taxes on goods you purchase—(because you’ll be charging tax when you sell these items). This will enable you to purchase goods on a wholesale basis. Google your State Office / Department of Taxation and Finance.
It will also be a valuable tool if you need to borrow money from a bank.
Susan Rakowski, Editor, is the founding editor of Small Business Opportunities magazine, a how-to publication for people that want to start their own business.
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Nissa Larsen, Managing Editor of Small Biz Startup, writes her blog, www.nisnice.blogspot.com, from New York City.