Monday, October 30, 2006

So you want to go into your own business?

The other day I was talking to a friend who had been in the accounting profession for over 20 years. He was tired of the same old thing year after year. He wanted to do something new and different. Our discussion revolved around what kind of business he wanted buy or start. I told him whatever he decided on, it will be more exciting, more frustrating, more time consuming and more hard work than he ever anticipated.

What Kind of Business?

Everyone thinking about owning their own business inevitably will need to determine just what kind of business is right for them. I recently returned from an International Franchise Association Convention, whose membership consists of thousands of franchise companies and their franchisees.

At the convention, I had several conversations that dealt with starting a franchise business. I shared share my experience and answered questions from people who were considering a new business venture or who had just embarked on one. I especially remember my conversation with a woman executive at a national American company. She is thinking of becoming a franchisee in the senior care industry. She wanted to be in a business that served older people. When we were talking, I suggested to her: “Let me tell you the realities of going into business for yourself, the good, the bad, and the ugly. You’ve got to ask yourself – what business am I really in before you make a decision to buy or start a business? If you are considering senior care, just be aware you are not really of caring for senior. You will really be in the business of training, motivating, and managing minimum wage workers.” She looked surprised but gave serious reflection on this fact.

In any business, there’s always the question of what business you are really in:

> Are you an owner/operator where you and your employees work shoulder to
shoulder and do all of the work yourselves – in essences a personal services business?
> Are you really in the recruiting and training of minimum wage employees
business (similar to the senior care business mentioned above)?
> Do you have a bricks and mortar business where the brand or location drives
people in the door and all you have to do is manage the business coming in the door so you will not need additional marketing skills? Or, is your business the type that you have to get and out and meet and greet? If so, do you have the skills to do this?
> Do you have a marketing oriented company where your advertising
campaign is the business?

These are only a few of the questions you will want to ask yourself about any business you are considering. Knowing what business you are really in is often more important than the products or services you sell.

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