So You Want to Start a Business

Uncover the Mixture of Uncertainty and Challenges

Do you ever wonder why we have difficulty answering our own questions when we are planning our future?   It’s likely the stakes are high, the risks are great, and fear of failure prevails.   

We may ask, “Which direction should we take?”

Uncertainty causes us to feel stuck. When we are unsure whether to embark on starting a business, a few indicators can help assess our skills to determine whether we are suitable for becoming the next entrepreneur.  We may believe our business can take off until we come face-to-face with obstacles and uncontrollable challenges. That old cliché, “When the rubber hits the road”, comes to bite us. The bite in those challenges may raise doubts in our capabilities and circumstances.    

This survey conducted by the RBC Royal Bank Small Business in 2005 shines a spotlight on the top five challenges experienced by business owners.  Those challenges then are most likely the same ones now. 

          1. Finding clients and developing your market (56%).

          2. Keeping a steady workload (37%).

          3. Working long hours (34%).

          4.  Keeping up with the competition (19%).

          5.  Finding qualified employees (16%).

Find a Clear-cut Recipe

Before determination sets you on the business path, let’s delve into helpful resources to pave the way and lead you to make the right decision.

Starting a business can feel both exciting and frightening. Finding the right balance is crucial.  We should always be mindful to feed the right emotion and starve the wrong emotion. The best way to combat our fears is to acknowledge and identify them.  Fears can be warnings worthy of our attention.  Preparation is the solution.  Some sure ways to determine our suitability for self-employment are: asking “What do I need to know?”,    hunting for information, and probing for honest answers to assess the prospect of being a small business owner.

A recipe for a successful business can be compared to the creation of a tasty dessert.   Both are based on the premise that the right ingredients are essential to be prosperous and enjoyable.  The methods in the preparation are as important as the ingredients. The ingredients have to be blended together in a cohesive manner.

  

Humor me and follow along with my trite comparison.

If you are looking for the ideal recipe for starting a business, look no further than to the website of Community Futures Saskatchewan which offers this guidebook, Starting a Business 101 (Canadian Edition).  Just like any recipe, you will discover whether you personally have the right ingredients for starting a business.   Simply answering the “To Be, Or Not to Be An Entrepreneur” quiz, comprised of 41 questions, will provide insight into your attributes and the confidence to proceed with your business idea.  

Acquire the Ultimate Ingredients

To condense the former list, the RBC Royal Bank emphasized a shorter version in their archived brochure (June, 2010).  You have to be willing, able, and above all passionate about forging ahead. Certainly some of these qualities may point out some personal weaknesses.  Recognize them and engage with someone who can complement your strengths and offset your weaknesses. This list of fourteen traits allows you to quickly assess yourself with a simple, “Yes” or “No.”

q Passionate about their work

q Someone who takes action

q Strong work ethic

q Strategic thinker

q Flexible

q Self-aware

q Able to ask for advice

q Resourceful

q A leader

q Creative

q Innovative

q Self-disciplined

q Financially disciplined

q A good communicator

Create an Effective Method

When we design an effective method, we will never have to guess.  We will know how we will begin and what things to investigate (market, competition, products and/or services). This task is achieved with the creation of a solid business plan.  Community Futures Saskatchewan provides a Business Plan Guide to create a winning plan for our business. It’s the roadmap to our success especially during the challenging times.   

Robert (Bob) Stocks, a business consultant and coach,  looks at a business plan in a different way.  He visualizes a business plan the same way you and I use the mirrors in our vehicles. The side and rear mirrors are always in sight. He claims, “If you move your side mirror to block your vision, you are blocking your visibility to the road. What would you be looking at--you would be looking at your past. Mirrors are representatives of the future and the past.”  Bob always recommends keeping our business plans current.  This means we should review our plan regularly and adjust it accordingly.

Add a Unique Touch

Another important consideration is to create a value proposition statement.  If you have heard the term, “elevator pitch or speech”, you’ll understand a value proportion statement is the same. By definition, an elevator pitch is a slang term used to describe a brief speech describing an idea for a product, service, or project. The name is derived from the view that the speech should be delivered in the short time period of an elevator ride, usually 20-60 seconds.

On the business front, value proposition statements have gained popularity in providing customers or clients with a clear perspective for the services and products offered.  I believe they help explain “why we do what we do”.

For example, when asked what I do, my response could be, “I create financial plans.” Some may think, “That’s boring.”  But if my response is “I am in the construction business.  I create financial roadmaps to help people understand where they are financially going and how to get there,” this may lead to more questions about how my work may help them.  I encourage you to reflect on how you provide value to others in terms of the services and products offered through your business.

Pay Attention to Specific Details

When I think about the people who didn’t do their homework, their stories did not end well.  One person believed a small city with an aging population had the potential for a men’s hair salon offering high-end haircuts and other exclusive services. He had misread the demographics, concluding that if the service was available, men would be willing to pay the higher price.  Another unfortunate incident occurred with a talented drywaller.  He had a strong market; his services were in high demand.  However, he encountered financial difficulties managing his business.  The business venture came to a halt when Canada Revenue Agency came to collect taxes owing on his business income.

The right ideas, products, and services may be waiting on the fringes for you to explore.  Perhaps you have something in mind.  Katelyn Lohr’s inspiring story is worth taking the time to watch.  Katelyn made an appearance on the Dragon's Den to pitch her toeless sock business. We can learn something from the questions the Dragons asked Katelyn and apply them to our business ventures.

Be Ready to Cook Up a Plan

Arming ourselves with valuable information is crucial.  Many believe all we have to do is work hard and our businesses will take off.  The guidebooks show how much “Business Stuff” we need to consider. To be honest, this stuff is too important to ignore. A great place to start is adopting the guidebooks as your own personal workbooks.   

A one-stop shopping centre generally offers everything we need.  When we are looking for a one-stop learning centre about starting a business, I recommend you stop here, Community Futures Saskatchewan for advice. The best part is the services are free for browsing, investigating, learning, and much more.  Take a peek for yourself.