Help! I’m going to jump (into my own business)!

What’s your strategy for starting a business?

Your Rant: I’ve finally decided to leave the corporate world.  What do I need to know to create my own business?

Repair 911,

It’s a big leap from a cubicle to your own business, so it’s wise to prepare. And when it comes to being prepared, the Danish army takes thngs to a new level. For example, when they were deployed to Iraq, where temperatures were hovering around 120 degrees, they carried their snow shovels into battle.

To ensure that you’re prepared for the challenges that you’ll actually face, I’ve included a series of questions below. For more, check out Larry Farrell’s book “Getting Entrepreneurial” (Wiley, 2003).

What do you have passion for? Start by thinking about the things that you do when you lose track of the time. Or the work related areas that you daydream about. Finally, ask the people who know you best to tell you where they think your passions lie.

What am I good at? This is the first question that most people ask themselves when they start thinking about becoming more entrepreneurial, but it’s second on my list. Just because you are good at something doesn’t mean that you have to turn it into a job. Sometimes it’s best to pursue an opportunity that requires you to use your secondary skills or to develop new ones.

What customers and markets exist for your product or service? Ultimately, you won’t have a business until you have customers. And remember, you can only find customers two ways: you can steal them from another business to yours. or you can create new ones by convincing people to buy something that they haven’t bought before. Underestimating the challenge of growing a customer base is probably the biggest mistake that most new entrepreneurs make.

Is it the right time to start your business? Most entrepreneurs want to start their business immediately. Sometimes it’s smart to give yourself time to get better financing, to line up vendors, to do more research, etc.

How much cash do you have? I’ll never forget something my finance teacher told me during my MBA program: cash is more important than your mother. Sorry mom, but his point is well taken. You will always need more money than you think you’ll need, so get access to as much cash as you can.

Do you have the drive to be an entrepreneur? Some people really need the structure of a job and the comfort of a regular paycheck. Can you motivate yourself? Can you make it through the dry spells that are a natural part of most new businesses? Talk to entrepreneurs that you know to see if you have what it takes.

The early days of your venture might just feel like shoveling sand, but if you keep at it you’ll gain more insight about what you should be doing and how you should be doing it.

Workplace 911 Pulse:

What is the most important to the success of an entrepreneur?

• Passion, 49.8%
• Customers, 21.7%
• Money, 14.4%
• Timing, 13.7%

User Generated:

The most important thing for an entrepreneur to do is to take off his or her rose colored glasses. I think most entrepreneurs are glass half full kinds of people. But you’ve got to learn in business how to see things as they really are, not as you want them to be. The more reality you learn to accept, the fewer nasty surprises will get in your way down the road