How do You know if your Business Idea will Succeed

January 24, 2012


Majority of small businesses fail in the first three years. As remarkable as this statistic is, it doesn’t stop number of aspiring entrepreneurs from pursuing their dream of owning a business. They think about their idea as the best thing since sliced bread was invented and are convinced that there is a huge untapped market out there that nobody as cracked. They have run their idea by close confidants and got their endorsement. Uncle Bob likes their product and Aunt Ann can’t wait to get her hand on it. There is only one problem. It is still an idea in your head!!!

So how do you go past this “pie in the sky” idea stage and make it a reality? Even more important, how do you know that this idea will succeed and will not leave you with agony and angst when it’s all over?
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10 Signs You will Fail as Small Business Owner

August 3, 2011


Not everyone has what it takes to be small business owner. Many people jump into small business without giving much thought to what is required to succeed. There are number of myths out there about small business that influence their decision about getting into small business.
Before you commit your time, money and effort to you own small business it helps to look for signs that show whether or not you will succeed as small business owner In addition, you should also look for signs that show that you may fail as small business owner. Below we have listed 10 of them. Examine yourself and see if you show any of these signs.
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10 Signs You will Succeed as Small Business Owner

July 31, 2011


Many people jump into small business without giving much thought to what is required to succeed. There are number of myths out there about small business that influence their decision about getting into small business.
However, not everyone has what it takes to be small business owner. We think there are special personality traits that you need to have to succeed as small business owner. While some people consider joining MBA to gain business knowledge from this resource about online colleges it also helps to have these personality traits for success as small business owner. We are on the lookout for signs that point to success as small business owner. Watch for these signs in to see if you will be successful.
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Are you too old to start small business?

July 13, 2011


When hearing the term entrepreneur most people think of a 20-something, smart looking kid who has just completed high-school or college and is eager to change the world. The images of Mark Zuckerberg or Google founders come to mind. While it is true that many of the famous companies were started by folks when they were in their prime, there is certainly an argument to be made for starting small business by people who are in their 40’s and 50’s.
Popular belief is that many of the people in that age group like to settle down and enjoy their steady lives. But there are number of “old” people who want to try their hands at entrepreneurship and small business ownership. We like to call them “experienced” as opposed to “old”.
So why do we think it is perfectly alright to start small business in 40’s and 50’s? There are number of reasons and they all have to do with what you have collected along the way.
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5 Additional Personality Traits Small Business Owners Need

July 10, 2011


In the previous post we discussed 5 personality traits small business owners must have to succeed in small business. To recap, they are – risk taker, decision maker, organized, delegator and responsible. Those who do not have these qualities should think long and hard about getting into small business or at least find a way to mitigate them.
We think there are 5 additional qualities small business owners need to become successful. In the following we describe what those qualities are and why they are important.
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5 Must Have Personality Traits for Small Business Owners

June 29, 2011


Small business ownership is not for everyone. It takes a special human being to own a small business and be successful at it. However, many people jump into small business without giving much thought to what is required to succeed. Their decision is based on the myths that exist out there about owning a small business.
Before you start down the path of small business ownership you need to think long and hard to see if you have what it takes to be a small business owner. While Some people consider online MBA programs to gain business knowledge it also helps to have these personality traits for success as small business owner. We regularly talk to number of colleagues and clients who themselves are small business owners to understand what personal traits make a successful small business owner. Based on this as well as our own experience as small business owners we have come up with 5 traits every successful small business owner needs. Here they are:
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What do Running a Marathon and Small Business have in Common?

June 12, 2011


I am raising funds for Leukemia and Lymphoma Society (LLS) by running the Chicago Marathon on October 9, 2011. The money raised will help with the research and support for Leukemia patients. You can find my fund raising page here, where you can also contribute money for Leukemia patients.
My conversations with the running coach and fellow runners have made me think about the similarities between running a marathon and operating a small business. Based on my past experience with owning and operating multi-unit franchise, I can see that there are number of things in common between the two. Both require significant up-front planning, both need persistence along the way and both need support group to cheer you to the finish line.
Let’s look at each of these similarities in detail.
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Lendio helps small business owners find lenders

May 18, 2011

We have discussed in the past how challenging the last 2 years have been for small business owners who want to borrow money to start or expand their business. The Great Recession of the century has made banks jittery about taking on risk and lending money to small businesses. We have also mentioned some creative ways you can use to start business with little money.
Recently we came across a new startup that aims to help small business owners find lenders who are willing to give them money. The startup is called Lendio The goal of this web start up is to “help small business owners find right business loans in a matter of minutes.” According to their web site they can do this with a simple 3-step process – 1) Business owners answer simple questions about themselves and their business. 2) Lendio looks for a match between your loan needs and over 3,000 banks and other lenders. 3) Business owners apply to multiple lenders on the web site and get status updates.
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List of Documents to Prepare for Business Sale

May 15, 2011


Opportunity favors those who are prepared to take advantage of it. This has been the consistent theme in the last several posts we have written on how to prepare your business for sale. We mentioned that you need to start planning for business at least one year in advance. In addition there are additional items you need to take care of as the time to list your business for sale approaches.
Your primary goal as a seller is to allay potential buyer’s biggest financial fears as well as other FUDs related to the operation of the business. It is only through proper planning and careful preparation that you can dispel buyer FUDs and make your business sale go faster and smoother. After all the longer it takes for the sale to go through the more chances of something going wrong and the sale falling through.
One of the most important aspect of getting prepared for the sale is compiling all the documents related to the business finances and operations.
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How do you overcome Buyer FUDs when selling your business

May 12, 2011

In the previous post we discussed two biggest fears your potential buyers have when they are considering purchase of your business. We showed how you can help buyers overcome these fears and make the sale of your small business go through quickly and smoothly.
In addition to the two fears related to business finances, there are other operational FUD (Fear, Uncertainty, Doubt) factors that buyers, particularly those who have not owned small business before, are likely to have. With proper planning you can help alleviate these FUDs and make the selling process go faster. After all, it is in your best interest to shorten the sale process as much as possible. The longer it takes for sale to complete the more chances of something going wrong and the sales falling through.
Based on our experience with both buying and selling business, we have come up with several questions that are likely to surface in buyer’s head when he is going through due diligence. The sections below document those questions along with our advice on how you can deal with them.
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