04/ 01/ 2002
Despite the mumbled complaints and periodic announcements that you are going to quit your job and start your own business, the actual decision is a scary step for most people. There is security in a weekly paycheck, a codependent retirement plan, and the fringe benefits of health insurance that are integral components of being an employee. Why give all that up? In today's Workshop, Edith Helmich discusses ins and outs of starting your own business.
The most common reasons for starting a new business are:
- Employment independence (self-employed),
- Increased financial potential,
- Self-actualization.
Freedom from worry about being laid-off, fired or demoted ranks high in the appeal of working for yourself. Being your own boss is consolation enough for the hardships and uncertainties of self-employment for many people. Being able to reap the benefits and choose the sacrifices that are necessary to make the business a success is a sharp contrast to the role of an employee.
The prospect of working hard may be more attractive when the profits come directly to you and are a result of work that you choose to do. The long-term success of a business takes on new meaning when a business plan forecasts eventual financial rewards.
For some people, the opportunity to "do it my way" provides a long-awaited springboard for creativity and initiative. In addition to releasing creative energy, an independent business allows and requires an individual to utilize a multitude of talents and personal preferences (the ideal self-actualization experience).
Of course, to bring these dreams into reality, there are certain conditions that must be met. Starting and managing a business takes more than motivation, desire and talent. It also takes research and planning.
Your tax dollars have created a virtual gold mine of information, references, and individualized assistance for small businesses at the U.S. Small Business Administration (SBA). You can call the SBA at 1.800.8.ASK.SBA, to receive advice.
The SBA sponsors a variety of counseling, training, and information services including the Service Corps of Retired Executives (SCORE), Business Information Centers (BICs) and Small Business Development Centers (SBDC). A comprehensive outline of the steps necessary to start a new business -- from selecting a product to obtaining start-up loans -- is available. SBA offers you a step-by-step tutorial on preparing a solid business plan with all its essential ingredients.
Although the astute new business owner will need input from a variety of sources, the U.S. Small Business Administration is one of the best places to start your transition from employee to self-employed business owner.
