Archive for Own a Business
Before you get into business……
Posted by: | CommentsIf you are thinking about going into a small business make sure you get things in order.
Step 1:
Have a plan for getting out of business. This is important because it will effect how you run the business.
If your plan to get out of business is “shut it down and declare bankruptcy”, your day-to-day decision process will be totally different than if your get out of business plan is “create a business worth $1,000,000… sell it and go to the beach.”
If you have a business partner you need a plan for you and your partner to get a divorce without killing your business. How does that work? Get a buy/sell agreement that is sensible, logical, definable and finance-able. How will you buy out your partner (or how will he buy you out)? Get a small business loan? Write a check? Give him a note? What if you or your partner gets hit by a truck? Do you want the spouse or kids as a partner? Have a plan even though you hope you don’t need it.
Step 2:
Make certain you’ve got Step 1 done very well.
Every business owner leaves their business at some point, every single one. Think about the end of the game before the end game is here.
Top 5 Questions to answer before you decide to start a small business.
Posted by: | Comments1. Is missing a paycheck for 4 weeks in a row one of the top 5 things that scare you (exclude health issues please)?
If yes, don’t go into to a small business.
2. Are you willing to sign a personal guarantee that bets everything you own that you can succeed?
If no, forget about figuring out the steps to starting a small business, don’t go into business for yourself.
3. Are you honest about your weaknesses? Or if something goes wrong is it always someone else’s fault or bad luck?
If no, forget about your small business ideas.
4. If you get knocked down do you feel sorry for yourself?
If yes, don’t waste time trying to figure out how to start a small business.
5. Do you really think you’re smarter than everyone else?
If yes, forget about owning your own business. People who ARE smarter than you will take you to the cleaners.