By: Denise
Mendiola-Hertslet, Guam SBDC Senior Business Counselor and Bank of Guam Women in Business Program Coordinator
Starting your own business can be
an invigorating but somewhat anxiety provoking experience. You are about to
leave the comfort zone of college, your home, a big company or any other type
of salaried employment. In exchange you have independence and the chance to
pursue your dream. The flip side is you no longer have large resources --money,
manpower, credit, expertise, contacts, name recognition-- all you have is....you.
You also have the rent or the telephone, the travel, marketing, research,
direct mail and whatever else to pay for. If you have a payroll, that's your
responsibility too.
The thought that keeps most
entrepreneurs motivated at those first insecure moments is the firm knowledge
that great risk can reap great rewards. Entrepreneurs come in all shapes and
sizes, all temperaments and work methods. Some are deliberate and painstakingly
meticulous in drawing up their 5 year business plan. Others fly by the seat of
their pants and say "Let's just do it." Some are excitable, some
quiet. Some extroverts, some introverts. Some are workaholics while others just
spend enough time to delegate the work to the right people whom they've had the
ability and insight to select. There is only one thing all entrepreneurs have
in common and that is the ability and willingness to take risks.
So when you start your own
business and begin to feel butterflies in your stomach, it helps to understand,
that is part of the package. People who are most comfortable being
entrepreneurs are those who have a high tolerance for the unstructured and
learn to accept ambiguity. No, they don't know if they'll hit the big time, or
even win the contract they're trying to land today. But they have decided to
take each day as it comes, do their strategic planning, tend to the marketing,
be obsessive about details, produce the best quality product or service they
can, and the business will come.
Now that you have figured out
that you are an entrepreneur true and true, how do you begin? The Guam Small Business Development Center’s
mission is to provide assistance to aspiring and current entrepreneurs on
Guam. Equipped with state-of-the-art
equipment, up-to-date resources, and experienced and qualified counselors and
trainers, Guam SBDC is a starting point for potential business owners. Guam SBDC even partnered with companies to
provide business planning via the internet. Clients can sign up for Pitch-then-Plan
and have the convenience of writing their business plan online or Virtual
Advisor that provides FREE online workshops in business planning. In addition, they recently purchased
assistive technology equipment to provide the first “Accessible Workstation”
for people with disabilities on Guam who also need to research and write a
business plan.
And you will definitely need a
business plan. This will become your road map.
When completed, it will tell you how to take this business where you
want it to go. It may even convince your bankers to take the ride with you. But
the really important point about a business plan is the act of producing one.
The most important element is that the act of creating a business plan assures
that you address and think through the issues confronting the industry you want
to enter; how is it regulated; who are it's customers; is the customer base
growing or shrinking; who are your competitors and what competitive advantage
do you perceive you will have to allow you to compete successfully with them;
all the details of your operation, whether its capital or labor intensive,
seasonal and, ultimately, how you are going to see a profit from it. A business plan doesn't have to be a long or
complex document; it can be a fairly simple paper of several pages. The two
important elements are that it provides evidence you have thought this venture
through and also you can turn back to it time and again to test your
assumptions.
Starting your own business,
whether home-based, strip mall, business incubator, or at a seriously
impressive office space, requires some serious thinking about whether you are
ready to accept certain realities. You
will be making some serious decisions that will include lease agreements,
promissory notes and contracts. Here are some suggestions to start small and
smart:
·
Keep overhead costs to a minimum. Rent a modest
office or work from home.
·
Keep your desks and equipment functional not
"showy".
·
Buy second hand.
·
Forget support staff.... call don't write... use
your email...avoid paper.
·
Answer your own phone.
·
Work until seven and eat a little later. You can
do all your "support" chores after regular office hours.
·
Don't skimp on business cards, letterhead
stationary or phone service. They are part of your direct dealing with your
potential customers and come under the category of marketing, which should
always be first rate.
·
Market, market, market!
Here are few last notes. It is
critical that you know your financial situation at all times. Remember that
when you run out of cash, you run out of business. Finally, when you start small, you start
smart!
