7 REASONS WHY YOU SHOULD TRY OWNERSHIP

Take a moment to ask yourself why you would like to become an entrepreneur. Perhaps you have dreams of taking over the family business, or aspirations to build an empire from the ground up. Whatever your reasons, it’s important that you identify them before you get started. Your goals will

guide your operation and steer you toward success. Here are some of the common reasons
why people decide to hang out their shingle:

REASON 1. MONEY

Many people—particularly those working in a corporate setting—feel short changed when all their efforts go toward doing a good job “for the team,” but the bonuses go only to the “captains.” The thought of starting a business in which they can create riches for themselves rather than for someone else is enticing. But, how much they stand to make, and how quickly they’re likely to make it, will depend on the type of business, the competition, the market saturation, and a host of other factors. Still, becoming an entrepreneur can be very rewarding financially. Just keep in mind that you may not have a positive cash flow during your first few years in operation. In fact, it may take several years for you to make a profit. But with proper planning and a healthy dose of patience, entrepreneurship can be a pot of gold at the end of the rainbow.

REASON 2. BEING YOUR OWN BOSS.

How many times have you stormed out of your manager’s office uttering beneath your breath, “If I were the boss, I would. . . . ” Many people opt for business ownership because along with the title comes a license to “call the shots” in every area such as naming the business, hiring employees, setting

policies, and developing advertising campaigns. For many people, becoming an employer is a sure-fire way to assume certain leadership positions that are not available to an employee. Realize, however, that if you’re the type of person who enjoys total autonomy, you will have to seriously consider how you

will handle certain management responsibilities, especially if you decide to take on a partner or two.

REASON 3. DEVELOPING YOUR OWN IDEA.

Some people seek ownership so that they can explore an idea(s) that has been rejected or ignored by former employers. That’s what Rachael Lewis did when she opened Rachael’s Totz ‘n’ Teenz Model Management Inc. from her Manhattan apartment in 1993. Lewis was bitten by the entrepreneurial bug

while working as a receptionist/messenger for an adult modeling agency in Miami. Sitting at her desk, she conceived an idea to develop a kids’ division and began pursuing it. “I was tired of answering the phones. It was boring to me,” says Lewis. “So I started working with some kids, but when I went to

the owners of the agency about starting a kids’ division and offered to run it, they said no. They said it was not a good idea, so that’s when I spoke to my parents about borrowing money to start my own agency.” Lewis’s agency now works with over 150 teen models, many of whom have signed contracts

with major clients, including Ralph Lauren, Tommy Hilfiger, Avon, and Toys ‘R’ Us. Like Lewis, many individuals simply want to develop a concept in a way that they see fit and not according to how others suggest it should be approached. Entrepreneurship gives them the breathing room to follow their

dreams.

REASON 4. ESTABLISHING JOB SECURITY.

Working in corporate has become no more secure than placing your money on a blackjack table. That’s why many people have chosen to make the transition from employee to employer. Entrepreneurship is also risky (according to the Small Business Administration, half of all new businesses fail within the first four years of operation), but it offers a sense of security that cannot be found in the cubed environments within a city skyscraper. Entrepreneurship gives people a chance to build toward retirement for themselves and their families without the fear of being downsized or rightsized. When you’re running your own shop, no one can fire you except your customers. And as long as they’re happy, you’re open for business.

REASON 5. CREATING A DIFFERENT LIFESTYLE.

Do you ever feel like your typical workweek is a scene from the movie Ground Hog Day (Bill Murray, as the main character, relives the same day over and over and over)? Many people who start their own businesses are not just looking to change jobs; they’re in search of a different lifestyle. Depending on the type of business you choose to start, you could travel internationally, appear on television and/or radio, or speak in front of large organizations. For those seriously bothered by tedium, entrepreneurship is a way to take on new challenges and feel valued and important.

 REASON 6. TO SHATTER A GLASS CEILING.

Some individuals—particularly women and minorities—feel they can only go so far when they’re working for someone else. However, when they’re working for themselves, the sky is the limit. Business ownership also gives them the respect and recognition they feel they’re entitled to.

REASON 7. FEEDING YOUR EGO.

Some people start a business because of how it looks and how it makes them feel. People like saying “I own a supper club” or “I own a computer company” or “I own a clothing boutique,” and then seeing the reaction that follows. A word of caution: If ego-gratification is one of your main reasons for pursuing ownership, think seriously about how important it is to you and how much it will impact certain decisions you make regarding the business. Don’t invest valuable time and money in starting a company only to please or impress someone. That person may not even care whether you succeed or fail. Whatever your purpose for starting a business, a key decision is whether you will pursue it full-time or part-time. Many entrepreneurs start a business part-time to reduce their financial risk and give them time to learn the industry and the potential market for the business before they decide to devote all of their energy and resources to it. Operating a part-time business can mean taking on just one client or customer as opposed to 10 or 20, or working for family or friends in your spare time. If you are concerned about business failure, consider launching a part time operation. If the business folds, you will still have your full-time job to fall back on. Even as a part-time entrepreneur, you will be required to put in long hours if you hope to be successful. Also, even though you may operate your business part-time, some of the start-up costs will not necessarily go down. For example, the price of a computer will remain the same whether you use it 20 hours per week or 40 hours per week. For any venture, part-time or full-time, you will need to set short-term  as well as long-term goals. The primary long-term goal is evident: build a successful business. But, in doing so, you may very easily get overwhelmed

and feel that you’re not getting anything done. To avoid feeling inadequate, set realistic and achievable milestones along the way. They will give you peace of mind and assurance that you are forging ahead. Here are some of the short-term goals you can establish:

1. Choose a business name.

2. Apply for a business license or permit (if one is required for your operation).

3. Set up a business bank account.

4. Trademark your product’s name.

5. Find a commercial real estate broker.

6. Locate a good tax attorney.

To stay on track, create a timetable showing the target date for completion of each task. Each small victory will prove inspiring and invigorating during the first few months of your new business.