Many people dream of turning away from the routine and becoming their own boss. They seek a life filled with fortune and glory, all the while thinking, "The founder of Facebook has nothing on me and my big ideas."
However, reality tends to throw business owners some curve balls, and as entrepreneurs look at the grim failure rates for new businesses, their passions die and someone else takes a similar idea to market.
In 2012, the University of Tennessee released a study finding that 44 percent of new businesses fail within three years. This may seem discouraging, but this statistic should not stop you of pursuing your dream of becoming a business owner.
Forbes magazine recently cited Tulsa as one of the best places for young entrepreneurs. Although this is encouraging, starting a business requires more than a welcoming market.
Here are five steps to take:
1. Know your product. If your idea offers something completely new and you've done the research to prove the market potential, then you've hit the jackpot. However, there are usually similar competing products or services. It's crucial to make your product unique, so it will stand out from the competition.
2. Know yourself. An important key to a new business is to have a network of other professionals whose strengths differ from your own. For example, if your strength is selling, then enlist someone with expertise in finance. One way to connect with professionals is to invite them to lunch. You'll be surprised as to the amount of advice someone will offer over a free meal.
3. Know your cash cushion. Common advice for new business owners is to have six months to a year's worth of cash to cover personal living expenses. However, in my experience, owners ideally need 12 to 18 months' cash cushion.
4. Know your support. Starting a business turns into the grind of acquiring new customers, satisfying the current customer base and determining why customers left. It's a roller coaster ride of emotions, sometimes achieving the highest highs and the lowest lows in the same day. Business owners need a support team to help maintain their sanity and keep the journey in perspective.
5. Know your "go to market" plan. With the large volume of quick information available to today's consumer, you have to lead customers to your door with a mix of traditional marketing efforts and current online/social media trends. Use marketing experience to lure the customer, and then keep them with an outstanding product.
So, if you're ready to take the plunge of turning passion into profit, go for it. These are just a few of the steps it takes in order to start and grow a business.
If you have the idea, research and desire, Tulsa is the perfect place to fulfill your dream of becoming an entrepreneur.
Ernest Howard is founder and president of Earnest Advisory, specializing in business strategy as well as business, management and retail consulting. He holds a bachelor's degree in marketing from Old Dominion University, an MBA from Colorado State University and is pursuing a doctorate in business administration with a specialization in strategy and innovation at Capella University.
The views expressed here are those of the author and not necessarily the Tulsa World. To inquire about writing a Business Viewpoint column, email a short outline of the article to Business Editor Rod Walton at
rod.walton@tulsaworld.com. The column should focus on a business trend; the outlook for the city, state or an industry; or a topic of interest in an area of the writer's expertise. Articles should not promote a business or be overly political in nature.
Original Print Headline: 5 Steps To Starting Your Own Business
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