Friday, June 1, 2007

wanna start your own business? here are 6 super start ups

According to the most recent statistics available from the Kauffman Foundation which tracks and promotes new entrepreneurs, an average of 464,000 adults create new businesses every month.

Starting a new business is complicated, risky and all-consuming and many of those who started barely make it big. 2/3 of new business survive at least 2 years, while only 44% survive at least 4 years. So if you're thinking of putting up your own business, think again. Consider the following before plunging into something you hardly know. This might save you from needless spending and overwork:

1. Determine if you're an entrepreneur or just a wannabe. What are the signs that you are one of these? If you are willing to take calculated risks, and you have a mix of optimism, high energy and an ability to live with ambiguity, then you're more like it. If you have that inclination to build something and you are prepared to wear many hats, one who is willing to change roles anytime from meeting with the chairman of the board, then back to the office to fix the toilet, then you're the guy who will most likely make it.

2. Pinpoint an opportunity. Begin with your interest, start with what you know and are most passionate about, then find an underlying need that's not been fully met.

3. Make sure there is a market for your idea. Talk to as many potential customers as you can.

4. Write a business plan. Determine the following:

What is your product or service?

Who are your customers? What are their needs? Are you able to address these needs? It is

time to turn your idea into a money-making venture.

5. Determine your business structure. You have 4 basic choices here: sole proprietorship, partnership, LLC (limited liability company), corporation

6. Look for funding. It is not a good idea to start dipping into your savings. You have nothing to fall back on should something will be amiss.

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