Starting a new business is an exciting, but challenging endeavor that produces handsome rewards to lucky owners who carefully implement a business plan. New businesses are started for many different reasons but most owners say their primary reason was to be their own boss. Some say they wanted to change their lives - expressing the belief that business ownership would set them on a different career path and give them greater control over their lives.
What drives minorities to start their own business? A search for destiny, suggest some economist and minority business experts. Many not only believe they can control their futures by starting their own businesses, but also, some say business ownership is their personal means of smashing through the "glass ceilings" they once encountered on their climb up the corporate ladder in their previous jobs.
A recent Home Office Computing survey of business owners reveals that business owners wanted to do more interesting work and disliked the corporate world. Many cited personal reasons such as spending more time with their families and earning more money. Some respondents to the national survey said they started their business because they had a great idea for a business, while some said they had just lost a job or thought they had gone as far as they could go with their employer.
Although there are many happy success stories, the chance for failure is extremely high. More new businesses fail than succeed, reports the Small Business Administration. Many fail because they were ill-conceived, underfunded or met stiff competition from large, more established companies.
Business ownership is not for everyone. Many people fall in love with business ownership only to learn the hard way - that their participation was a mistake, notes Mike McKeever, author of How to Write A Business Plan. He suggests the prospective business owners make sure their personal and business talents match the type of business they want to start.
"Take a moment to review your personal strengths, weaknesses and attitudes toward life. Then, examine how they fit with the type of business you want to start. For example, if you love meeting new people and feel comfortable with strangers, you may be bored in a business with little customer contact."
"If you are generous to fault and have difficulty saying no, you may be unlikely to succeed in a business that requires you to buy inventory cautiously." McKeever suggests potential business owners consider several things before starting their businesses. They are: (1) Ask if you are qualified to run a small business; (2) Know your potential business; (3) Be sure you like your potential business; (4) Make sure your business fits into the overall scheme of things; (5) Create a business plan that describes your market, outlines your goals and discusses the risks facing your business.
Many business owners have similar problems, but many African- American business owners often have a harder time financing their businesses. Many have to fund their own business ventures or find friends and relatives willing to make an investment. Financing from financial institutions aren't out of the picture, however. Business experts say entrepreneurs who have a well-prepared business plan are more likely to obtain the funding they need from lenders. Several of those primary sources of income include raising money from personal savings, obtaining funds from close friends and relatives, banks and venture capital firms.
When these funding sources are unwilling, experts suggest you try federal agencies and other well-established private agencies such as the Small Business Administration, state and local government agencies, leasing companies, insurance companies and pension funds.