Exploring Business Ownership – So You Think You Want to Be in Business? (Part 1 of 7)

This series is dedicated to helping “wannabe” business owners determine whether they’re a good candidate to venture forth into the world of business ownership.

Many times those who have been laid off or downsized, or are in danger of that happening soon, begin to actively think about business ownership. Typically, they’re tired of the uncertainly of their present position, or simply have that entrepreneurial itch and are considering striking out on their own. This may describe your situation and you might be wondering whether it’s best to continue in the employment world or if it’s time to take the plunge.

So, how do you test the waters to know if you have the risk tolerance, level of motivation, and personal attributes necessary to succeed in the business world? Read on.

So You Think You Want to be in Business

Maybe you’re tired of working for “the man” and you want your own “gig”. Or you might have a great idea that you’re sure will work. Or maybe you want to build wealth by starting and building a business to sell at a tidy profit. Or maybe you dream of creating a “gentleman farmer” lifestyle where you simply hire someone to work hard in your business, while you collect an owner’s check at a retirement resort in another state (or country). There are many reasons people start or buy businesses. Most of them have a root in the dissatisfaction with their current situation.

What Kind of People Do Well in Business?

Conventional wisdom says you have to be a “sales type” to be successful. However, Bill Gates is the world’s most famous geek, is definitely not the sales type, and didn’t even finish his undergraduate degree at Harvard, yet few would argue with his success.

While there are some traits that serve owners better than others, in my experience nearly any personality type or style can be successful in business. Rather than focusing on whether someone is outgoing, the basic ingredients I find important to a candidate’s success are a clear understanding of what they want to achieve, a high level of self-motivation, the willingness to ask for help, and the ability to change when business conditions or market needs require it.

Typically, natural sales-types are not good at detail, yet successful businesses must deliver everything promised, when it was promised. So the challenge for the sales-type is to recognize that details are important in running a business and they must have a “dot the ‘i’, cross the ‘t'” person filling these functions.

Likewise, those who see themselves as “geeks” are great at detail, but are not comfortable with the self-promotion and personal contact necessary to create prospects and generate sales. So, the challenge for the geek business owner is to recognize the importance of the sales function and ensure a sales type is in it.

So, it’s far more important to recognize that a successful business requires all personality types working together than it is for the owner to posses a particular personality style.

Everyone wants to be successful in business! In part 2 we’ll discuss what your definition of success should be.

A Basic Guide to Small Business Ownership and Managerial Training

Business ownership is an extremely tempting form of income for many people. The idea of creating your own work hours and environment is great, and the constant opportunities for your ingenuity to be put to use would have any creative person asking, “where can I sign up?” Although there are huge perks to owning your own business, there are twice as many issues that come along with it. Between the training of employees, store financing, legal issues and many other things, A business owners head will almost always be spinning.

Depending on the amount of time you yourself will be able to put towards your business, managerial hiring and training will be one of the most crucial initial tasks. Any manager should be able to relay information quickly and efficiently. Additionally, solid leadership skills will also prove very helpful. Give managers insight towards your reasoning or train of thought for important decisions you have made. By allowing them to further understand how your business is run, employees will feel as if they are part of a team and begin showing more commitment and dedication towards improving your overall business.

Regardless of how much is put into the hands of your managers, the basic financing and merchandise purchasing will almost always be left in the hands of the owner in any small business situation. Deciding exactly where to allocate any capital money or earnings can sometimes be difficult. Consider offering short questionnaires to customers that might give you a better understanding of exactly who you are marketing to and which advertisement techniques are working the best. If you aren’t the sole beneficiary of your business establishment or received funding through various investors, there will be a large amount of people awaiting your success. Not only will you have to satisfy your customers, but you will also have to satisfy all your investors and colleagues.

During the initial stages of your business,be sure to work out all details and inform potential investors of realistic outcomes and results – any investor breathing down your neck will make it difficult to make the important decisions you will need to make as a small business owner. Issues that never crossed your mind are bound to arise as your business progresses, and these are only a few of the things that you should be aware of. Be sure to inform yourself of all information pertinent to your business field and location, including competition and consumer-base.

This is What Transfer of Business Ownership Entails

There are many reasons that may lead one to transfer his business ownership to another party. One reason is that, the owner may wish to move on to a different locality, and since he may not be able to oversee its operations from far, he may be forced to just give up his ownership rights to someone else. The steps are easy, but should follow a legal process, in case of misunderstanding issues that may arise later on.

Since there are many methods through which someone can carry out the transfer of a business ownership, it is good to first understand the implications of each method and settle for the one that suits your personal situation. The most suitable is the one that fits your psychological satisfaction as well as financial state. Methods of transfer, like sale of the business will mean that you will be able to receive some financial gains from what you have invested in over years.

If on the other hand you choose to pass on the ownership to a son or daughter, you may not have the full confidence that the venture will run the way you will want it to. All the same, there is a price to be paid for all the choices we make. If you decide to lease out your business, be sure to follow all the legal requirements that will protect both you and the lessee from future misunderstandings.

Leasing allows you the opportunity to continue earning from the business as you will be entitled to monthly payments or periodic payments according to what both parties will agree and sign to in the contract. In the lease, you could also agree with the lessee that they will buy the entire business after some period of time.