Starting Your First Business — Introduction

Freedom to do what you want to do, when you want to do it. Golf in the afternoons. Shopping on the weekends. Dream vacations—a Caribbean cruise, a tour of Europe, whitewater rafting in the Grand Canyon, or a trip in your own 40-foot motorhome. A large home in the suburbs, new cars, beautiful clothing, and expensive jewelry. A big income and a nice retirement package. Sound good?

You can achieve all this, and more, by owning and operating your own business! I did it, and so can you. It takes perseverance, a positive attitude, hard work, and a little luck—but it is possible. In this book, I will show you how to get started, and explain what you will have to do to be successful. You can start your own business, and achieve financial rewards and a great deal of personal satisfaction. But it won’t be easy.

Is Owning a Business Right for You?
Just because you find yourself looking for a new job—or bored with the one you have—it doesn’t mean that you are a good candidate to be a small business owner. According to recent Small Business Administration (SBA) figures, more than 585,000 companies go out of business in an average year. While not all of those companies are failures—some businesses are sold, merged, or closed because the owner retires—many fail because of poor management. The facts clearly demonstrate that running your own business is not easy.

You don’t have to go to college to operate your own company successfully. On the other hand, small business is similar to the college experience. You’ll have to make hundreds of decisions correctly, and grades really count. You must learn to set priorities and multitask. If you have trouble making decisions, then running a small business is not for you. And even if you end up with an “A” grade, there will be plenty of obstacles along the way to achieving that lofty goal. Unlike college, there is only one test in the business world—and it’s the year-end bottom line.

Do you have a strong desire to start your own business? Is the company you want to start a passion for you? Is it something you enjoy, understand, and are one of the best at? Are you sure that you want to take the financial, time, and employment risks?

What Product or Service Will You Offer?
Whatever the product or service you want to offer, it should be something you love and enjoy! Maybe your passion is plants, and you want to open a florist or landscaping center. Maybe you love cars, or computers, or furniture, or arts and crafts. If you are going to have your own business, it will take a lot of time and effort. You will spend many hours with the business every day. Many small business owners work sixty hours or more a week—but they love it because they are passionate about what they do, and they like the flexibility and freedom that come with owning their own company.

You have to know not only what you want to do but also what you can do. Find something you are good at or know something about. I believe you generally get a feel for a business. Perhaps you have been a marketing director for a mid-size company for several years and suddenly you are out of a job because the owner decided to go into another business. Or you decide to use your journalism degree and create a new trade magazine for the industry. It makes good business sense since you have the skills and the knowledge of the industry.

It’s important to understand that you must have some money to get started. You personally may have to go without a salary from your new company for several months, if not longer. When I started my first company, Indy Lube 10-Minute Oil Change, I was still working as a sales representative for a dental supply company. I didn’t take a salary from my start-up company for more than two years. It was hard working two jobs and putting in all of those hours, but I knew I wanted the independence and control that comes from having my own business. I didn’t want to work for someone else any more.