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Post on 23-Jan-2015
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Topics for Discussion
1. Risk and Rewards.
2. Why business ownership?
3. Starting a business, buying an existing business, or starting a franchise
4. Simplifying the search.
If you knew you could be a successful business owner, would you rather work for
someone else?
HOW WOULD LIFE BE DIFFERENT???
Survey:
Why Own Your Own Business?
Control Financial Security No More Layoffs Money
Fulfillment Flexibility Independence
SUCCESS
What is it for you?
Why do most people choose
to work for someone else?
Why?
The Question:
Some of the Answers
Risk:A job is safer than a business
I’ll wait until the economy is betterMoney:
A business costs a lot of money to start and run
Knowledge: I don’t know where to start or find
what I’m looking forSkills:
Running a business takes specific talents and skills
800 LB Gorilla
FEAR OF FAILURE!
Dealing with the Fear of Failure
• You will feel fearful – It’s normal!• MANAGE AND REDUCE FEAR• Doing Research – Making FACT based decisions• Minimize the leap of faith• DO NOT allow fears to drive decisions• DO NOT make judgments based on perception
and uneducated opinions• “Is that what I think, or know for a fact?”
“Sure I’d like to own my own business but it’s too risky.”
Perception of Risk: Job
Is working for someone safe? Short term yes, but …
Can you be sure your job is safe?
Can performance determine security?
Will you meet your long-term financial goals of security and retirement?
Risk
TimeJob (Then) Job (Now)
Risk Increases
Business Ownership
At first, owning your own business can be scary, but ...
• No one can take it away. You can’t be downsized, transferred or fired.
• You can grow the business at the pace you want.
• The longer you own your business the safer it becomes.Risk Decreases
How To Fail At Business
Ownership
How to Fail at Business Ownership
• Under capitalization• Emotions for product/service are the main
decision criteria• Misplaced Passion• Not giving your all
Suggested Reading
Rich Dad, Poor Dad Series by Robert Kiyosaki
E-Myth Revisited by Michael Gerber
Business Ownership Options
1. Create a start-up business
2. Buy an existing business
3. Buy a franchise
Is this a make or buy decision?
Start Up Business
Advantages Disadvantages
• Must create systems• No one to turn to for
help• Limited financing
options• Years before you
make money• Highest failure rate
• Must create systems• No one to turn to for
help• Limited financing
options• Years before you
make money• Highest failure rate
• Total control• Make all decisions• Keep all profits• Biggest upside
Buy an Existing Business
Advantages Disadvantages
• Cash flow & good will• Actual historical results• Attractive to lenders• Established location &
customer base• Employees in place• Systems may be in place• Owner financing
• What is the real cash flow?
• What is the good will?• Hidden seller motives• Employee defection• Higher Debt Service• Poor training/support by
the former owner
Starting A Franchise
Advantages Disadvantages
• Easiest to evaluate• Systems in place• Training• Support• 4 Times the success rate• Quicker ramp up time• In business for yourself, not
by yourself
• Less Control• Franchise Fee• Royalties• Compliance• Minimums
Determine Your Business Model
What do you want from the business?• Challenge, recognition, prestige• Build equity for retirement• Time for family and interests• Independence and control• Financial security
Determine Your Business Model
Business Preferences• Employees• Budget • Business environment• Full or Part-time & Hours• Number of units• Type of customers
What does the Solution Look Like?
Something StableSomething SafeSomething AffordableSomething I can Plant Roots withSomething I can GrowSomething I can rely onSomething where my Job won’t disappear simply because of a corporate makeoverMost Importantly… Something I Know I Can Do, and Do Well!What else should be on that List?
Plan Your Strategy
When you are thinking about being a business owner, you should develop a:• Short-term strategy• Long-term strategy• Exit (Destination) strategy
Short Term Strategy
Find a business you can get into where you will not fail
The more research you do the more you improve the odds of success
Long Term Strategy
The most important element:
The business must give you the lifestyle you want and allow YOU to meet your goals
Freedom, Recognition, Achievement, Control, Money, etc. (the things that YOU value the most)
Questions?Remember, if you don’t have a dream, the
person you work for does...
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