Having an idea, arranging funding, and the best ways to market are among the list of questions all budding CSRA business owners must consider. However, there is one question that is more important than any of those.
Are you ready?
The Nashville office of SCORE, the nationwide organization that provides mentorships for startups and small businesses, posted a video primer on how to answer that question.
The first step is to determine your strengths and weaknesses, beginning with a solid work ethic. However, it is important to determine the impact it will have on your family and social life if your work ethic is too strong.
“Experience or education in the field has a strong correlation to success. Consider getting a job in the field and taking appropriate courses or workshops before starting your business,” the video advised. “You need to be organized, but not to the extent that you spend so much time organizing, you don’t have time to do your work. Keep a calendar and block out time for the unexpected crisis as well as the things you hate doing, so you don’t avoid necessary tasks.”
The next step is to research your business idea. Step one in that vetting process should begin with what your business would offer, its value, and the potential customer base. Then it is time to determine your likely competitors and define your unique advantage.
“If your idea proves successful, you can bet the competitors will soon emerge. What activities will you need to perform, and what resources and partners will you need to design, produce, market, and deliver your products and services? Understanding these will help you determine the cost of the value you intend to provide. A business model can help organize your thoughts and actions,” the experts said.
That business model should include key activities, partnerships, resources, revenue streams, and cost structure.
For some fledgling entrepreneurs, there is a question of time. SCORE calls them “boomerpreneurs.”
As part of the National Small Business Week Learning Lab, SCORE offered advice for older individuals wondering if starting their own business is an option.
Steve Strauss, a best-selling author and entrepreneur, led the workshop and pointed out that boomerpreneurs have what he called an unfair advantage. He said age can be a secret weapon for older individuals because they already have five vital strengths:
- Reputation
- Experience
- Skills
- Contacts
- Capital
“Reputation, the number one capital thing, your name carries weight,” said Strauss. “People who know you, they all already trust you. Think about the people you have in your orbit that you can tap into as you start your new business. You have probably industry recognition and awards, professional credentials and titles, public reviews, references, testimonials, LinkedIn, endorsements, and recommendations.”
Experience and skills create a foundation for knowing what works, but more importantly, what doesn’t, and how to sidestep the pitfalls. Strauss cited a research study by MIT Sloan and the Census Bureau found that people who are 50 and older are two times more likely to succeed than founders in their 20s.
Strauss said one way to test entrepreneurial waters is to start a business as a side hustle. It preserves current income but also builds a potential off-ramp for transitioning from a full-time job to part-time, before taking the final leap.
Strauss said it is important to take steps to create your business, while protecting your personal assets. One way to do that is to form a limited liability company (LLC) and S corporation (S Corp), even as a sole proprietor.
“If something goes wrong with the business, you personally are on the hook. Your house is on the hook. Your home equity is on the hook, your retirement, maybe your savings,” he said. “But if you have a corporation, there’s something called the corporate shield. They sue the corporation and not you personally.”
Strauss advised anyone considering starting their own business to reach out to a local SCORE office for information and mentorships. There is an office in Aiken that serves the CSRA. Learn more at: https://www.score.org/sc/greater-aiken/
