we’ve updated and revised (or expanded) every chapter and added a lot of new ones, too. In fact, Part 7, “Engage,” is updated with new sections on social media campaigns and on building an incredible web presence that will get your idea noticed.
We start by showing you how to get visitors to your website, keep them there, and make sure they return for more. Next, we move on to social media marketing and networking. If you haven’t jumped on the social media bandwagon yet, your business can’t afford to be left behind. We show you how to use social tools to network with potential customers, and connect and engage with your audience, because in today’s marketing landscape, that’s how brands are built.
We also have added chapters on running your business virtually, using the latest smartphone and tablet and computer technology to connect seamlessly, and on funding options that were never before available, such as crowdfunding platforms.
Many business resources and tip boxes (see examples on the next page) are also all updated for the sixth edition.
Finally, there’s an appendix that’s chock full of resources with contact information. We list business associations, federal agencies, books, magazines, and other publications in areas ranging from advertising and marketing to accounting and taxes. We even provide internet resources and equipment manufacturers.
aha!
Here you will find helpful information or ideas you may not have thought of before.
tip
This box gives you ideas on how to do something better or more efficiently, or simply how to work smarter.
warning
Heed the warnings in this box to avoid common mistakes and pitfalls.
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This box points you to the treasures of the internet for more information.
save
Look for this box to provide valuable tips on ways you can save money during startup.
Starting your own business isn’t as frightening or risky as some would have you believe. But it’s a journey that shouldn’t be taken alone—and that’s why you bought Start Your Own Business. We’re glad you’ve chosen us to take this exciting journey with you—you’ll be a smarter traveler for it. Let the journey begin.
CHAPTER
2
Taking the Plunge
Get Ready to Be an Entrepreneur
Before they get started, some people worry if they have what it takes to be an entrepreneur. If this is you, stop worrying. We firmly believe anyone with the desire and the initiative can be an entrepreneur. And since you purchased this book, it’s likely you have both the desire and the initiative.
But just because you can be an entrepreneur doesn’t mean that now is the right time to take the plunge. This chapter will help you determine if you’re ready for entrepreneurship right now or if you should hold off for a bit.
The Entrepreneurial Personality
Every year, hundreds of thousands of people start their own businesses. But while most succeed (yes, that’s the truth!), many do fail. Why? One of the common causes of startup failure is lack of preparation.
warning
If you have a family, make sure they understand the emotional and financial sacrifices business success requires. When your family doesn’t support your business—if they’re always saying, “Can’t you leave that alone and come to dinner?”—it’s going to be tough to make your business work. If your family isn’t ready for you to become an entrepreneur, this may not be the right time to do it.
People come to the entrepreneurial path from different directions. Increasingly, some start fresh out of college or after a stint at home raising their kids or simply because the idea of actually retiring is abhorrent to them. Most, though, come to entrepreneurship straight out of the work force. And many of them dabble in their would-be business before they take the plunge completely, testing ideas on the side, while maintaining a day job. Quitting a full-time job to start a business isn’t something to be taken lightly. You should be sure now is the right time to get started. First, you need to ask yourself some questions: Do I have enough money? If you have a family, are they ready for this? Is there a need for a product or service like mine? Parts 1, 2, and 3 of this book will help you answer those questions.
Full Steam Ahead
Many successful entrepreneurs say a sense of urgency that made starting their businesses not just a desire but a necessity was their driving force. One entrepreneur’s advice: “You’ll know the time is right when you can honestly say ‘I’ll put my house, jewelry, and other personal collateral on the line to attain the startup money I need for the long-term rewards I deserve.’” We’re not recommending you put up your home (though more than a few entrepreneurs started that way). But that willingness to risk everything likely means you’re ready to start now.
What motivates potential entrepreneurs to stop daydreaming about business ownership and actually do something about it? While many people think one single incident—such as getting fired or being passed over for a promotion—is the impetus for becoming your own boss, most experts agree it’s usually a series of frustrations that leads to entrepreneurship.
A fundamental desire to control their own destinies ranks very high on most entrepreneurs’ lists of reasons for starting their own businesses. This need is so strong that entrepreneurs will risk family, future, and careers to be their own boss. Unable to feel truly fulfilled working for someone else, these individuals cannot be happy following someone else’s plan or taking orders from a boss. They’re often convinced that they have a better way, or an idea that would really revolutionize their industry—or at least their little corner of it—and working within a corporate structure is simply stifling that improvement.
But opportunity comes in many guises. It might be when potential customers start calling you, or perhaps a business in your area is failing and you know you can make it work. Or maybe you feel as if you’re underemployed (working below your potential salary or your skill level) or not putting your skills and talents to their best use. Perhaps there’s a need for the product or service you want to provide. Or you’ve simply figured out a better or a new way to do something.
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Need