Business Is No Guarantee of Riches
By Tim Knox
Q: I'm thinking about starting a
business since that seems to be how most rich people get rich. I don't
have any business experience or much money, but I'm a fast learner and
have lots of energy. Any free advice? Peter J.
A: I'm full of free advice, Pete,
and here's your dose of complimentary wisdom: don't quit your day job.
No offense my energetic friend, but to consider starting a business with
no experience and no money is a little like playing football with no
playbook or pads. Your various body parts will be pounded into the
ground by better-equipped players and you will lose the game.
Now let's address your other point
concerning rich people who got that way in business. Anyone who thinks
that going into business is the key to riches needs to hear the story of
the boy who asked the rich old man how he made his money.
The old millionaire fingered his
Rolex watch and said, "Well, son, it was 1932: the depth of the Great
Depression. I was down to my last nickel. I invested that nickel in an
apple. I spent the entire day polishing the apple and, at the end of the
day, I sold it for ten cents.
"The next morning, I invested those
ten cents in two apples. I spent the entire day polishing them and sold
them later for 20 cents. I continued this system for several years and
soon I had a thriving apple business."
"And that's how you got rich?" the
boy asked. "In your own apple business?"
"Oh, heavens, no!" the old man
replied. "I lost my shirt in the apple business, but a few years later
my wife's father died and left us ten million dollars..."
Moral of the story, Pete: you'd be
better off finding a nice girl with a sickly, rich daddy than to count
on starting a business that will make you rich. Of course finding a nice
girl with a sickly, rich daddy is easier said than done (trust me on
this one), but one can always hope.
That's certainly not to say that
you can't get make a great deal of money in your own business or even
get so filthy rich that wide-eyed youngsters beg you to tell them
stories of how you built your fortunes. But most people who start a
business do not get rich. To the contrary, most make so little money
that they decide that going into business was not such a great idea
after all and then run screaming back to the security of the job they
once could not wait to leave.
While it is true that more
millionaires got that way from their own business ventures than through
any other means, to summarily assume that starting your own business
puts you on the road to riches is foolhardy. Many entrepreneurs build
solid businesses that provide a very comfortable living and many others
do indeed get rich. Others simply find out that they have traded one job
for another and still others discover that business really wasn't for
them.
What should you really consider
before starting a business? Asking yourself the following questions will
help you make a wise decision.
Are you really cut out to be an
entrepreneur?
This is the first question you must
ask yourself because the grass on the other side of the entrepreneurial
fence is not always greener (despite all the entremanure).
Ask yourself:
Do you have a burning desire to own
your own business? Do you have the initiative to get out of bed in the
morning and be your own boss? Do you have the energy to work around the
clock? Can you persevere in the face of adversity? Can you turn problems
into opportunities? Can you work alone without support? Can you get used
to the idea of life without a steady paycheck? Are you passionate about
your product or service? Are you prepared to run the company, do the
books, sweep the floors, empty the garbage, and do whatever it takes to
make the business a success? If not, you're not cut out to be an
entrepreneur. Learn to love your cubicle.
Do you really have a "great idea?"
The key phrase here is "great
idea." All businesses - those that make their owners millionaires and
those that make their owners paupers - start with an idea. The problems
begin when that great idea turns to mush. Share your idea with others
and ask for honest feedback. You might find that great idea is not so
great, after all.
Is the timing right?
Is this a good time for you to
start a business? Maybe you've just retired or left a job and have the
time to devote to a business. Or maybe a rich uncle left you a bundle
and you are now financially sound enough to venture out on your own. If
the timing is not right, don't start a business.
How's your personal life?
Money and timing aside, your
personal situation should be the deciding factor on whether or not you
start your own business. Is your health good? Is your family supportive?
Are you willing to sacrifice current lifestyle for long term success?
How well do you handle failure?
Since the vast majority of
businesses fail within the first 5 years this is the most important
question you must ask yourself. No venture is foolproof. Even with a
rich relative (alive or dead) no business success is guaranteed. If the
business does go belly up, can you still land on your feet? If not, RUN!
So Pete, there's your free advice.
Good luck finding a rich father-in-law.
Small Business Q&A is written by
veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest
books include "Small Business Success Secrets" and "The 30 Day Blueprint
For Success!" Related Links:
http://www.smallbusinessqa.com
http://www.dropshipwholesale.net
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