Friday, December 29, 2006
For What It's Worth: Small Business
It's a new year and for many people that means a fresh start. If you're thinking about quitting that job and becoming your own boss, there's a lot to consider. Seven's Craig Stevens says -- For What it's Worth -- before you start your own small business, make sure you have what it takes to succeed.
WSVN -- Chris "Big Red" Fields: "That's the camera you had requested in the front, so you can see the front area of your shop."
Installing security cameras, alarms and phone systems is what Chris Fields, known as "Big Red," excels at.
So he quit his job and started Big Red Communications.
Chris "Big Red" Fields: "I figured why not try it myself, and I knew if I just did a good job and called the customers back and did what I did for somebody else, why couldn't I do it on my own?"
Starting your own small business is not easy. The truth is, the odds are not in your favor.
Chris "Big Red" Fields: "Statistically speaking, most businesses fail within the first one to two years of starting."
7-News financial expert Ken Wurtenberg says plan on two to three years to break even and five years to begin making a profit.
Successful entrepreneurs have certain traits:
Are you a decisive decision-maker?
Enjoy taking charge?
Are you organized? Independent?
A hard worker?
Are you willing to make sacrifices?
Ken Wurtenberg: "They need to have reasonable goals and expectations, they need to be very good with their finance and money, and they need to know when they're out of their area of expertise."
Once you decide you can do it, you have to develop a business plan.
Assess the market for your product or service, and then estimate the sales and revenue that your business will generate.
Ken Wurtenberg: "They anticipate income sooner than it happens, and they don't define all their expenses."
Two years since starting his communications company, Big Red's business has grown. But, he admits, it takes long hours and a lot of determination to succeed.
Ken Wurtenberg: "Basically keep your money close to you and don't go crazy, reinvest your money back into your company and your company will take care of you."
Experts say many people who start small businesses generally work harder for less money but are happier than their counterparts who work for someone else.
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