Some 4 percent of American adults (approximately 7,000,000 people) try to start their own business but one half of them never open. (FreeDigitalPhotos.net)
If you have no competition, you are dealing in buggy whips. Whatever business you get into there will be competition. My advice to the ambitious, would-be business person, is to get a job in the field you are interested in, work for a few months, change jobs at least once (still in the same field), and then decide how, when, or if, to start out on your own. I don't care if you want to deal in computers or croissants—get the experience before you invest.
The U.S. Entrepreneurial Research Consortium has come up with data on wannabe entrepreneurs:
• Some 4 percent of American adults (approximately 7,000,000 people) try to start their own business but one half of them never open. The time it takes a person to quit trying is roughly twenty months, Internet startup geeks excluded.
• Individuals from poor backgrounds lose confidence sooner. However, early research showed little correlation between entrepreneurial aspirations and wealth.
• The prime years for starting a business are twenty-five to forty-four. Apparently there is no gender gap in this age bracket.
• A high school education sharply raised one's odds of success. Beyond that, a university degree made little difference.
In the study, there was no mention made of immigrants whose English may be poor but whom, ironically, often go into business a short time after reaching these shores. Some have capital, but most have little to no access to credit.
It would help to know the reasons you wish to buy an existing operation rather than start one from scratch. Presumably it is because you do not want to risk your savings on something new and untried.
Let's suppose you have zeroed in on a particular line of business but have not yet targeted a vendor. Please allow me to ask you a few personal questions:
• Do you understand the nature of the business?
• What skills and experience will you bring and will they be of help?
• Is it a business you will enjoy?
• Since a 100 percent commitment is essential, are you prepared to give it your all?
• Does the investment represent your total capital, a portion only, a personal loan, or other?
• Does your family approve of your decision and will they support you if you need to work long hours?
• If it is a partnership, is your partner(s) also sold on the project 100 percent?
• Are you satisfied that this is what you want to do over the most productive years of your life?
The crisis in today’s job market leads many people wanting to try their hand at business. A Chinese term currently in vogue for taking up business opportunities is "Xià Hai," or "down to the sea." The sea apparently symbolizes an immense realm and going to the sea is an action that invites bold people. Some watch the sea from the shore with desire, mystery, and fear.
The waves are turbulent, so there may not be peaceful sailing ahead.
Manny Drukier has been in business, from manufacturing to publishing, retail to real estate, stocks to stockpots for the past 60 years. He is the author of two books and resides in Toronto, Canada.
