Suwannee Democrat - March 26, 2014

The Suwannee Democrat published an article I wrote for them in today's paper.  I hope it is the first of many to follow to raise awareness of business issues, to stimulate business activity in this region and to increase the Small Business Development center clientele.  I will post a copy of the article below.

Do You Want To Be Your Own Boss?

If you are thinking of starting your own business, you are in good company.  On any given day in the United States, 53% of adults are seriously considering starting their own business.  This group of aspiring entrepreneurs is more male than female (60/40 split) and two thirds are between the ages of 35 and 44.  This data shows that the entrepreneurial spirit is alive and well in the United States, but how can you turn these thoughts into reality?

The Small Business Development Center (SBDC) has been designated by the State of Florida as the principal provider of business assistance.  The SBDC helps businesses through one on one confidential consulting (provided at no charge), workshops and access to business and marketing resources.  One of the workshops is called: How to S-T-A-R-T-U-P Your Own Business and uses the S-T-A-R-T-U-P acrostic to convey the major items of consideration for a new venture.

Select the Idea.  Businesses exist to meet a need, provide a service or fix a specific problem.  What is your idea or opportunity?  Is it new or different?  Does it make life easier or better?  If people will pay you for it, it could become a viable business.

Test the Market.  In this phase, the aspiring business owner does his homework to see if the idea is viable.  Who are my potential customers?  Where are they located?  How does my product/service meet their needs? What are my strengths and weakness?  Who is my competition and what is my advantage over them?  This research will help the entrepreneur refine the idea.

Acquire Capital.  A new business will need money to get off the ground.  The amount of money a new business needs depends on what type of business it is and the scope of the operation.  It is important, however, to carefully plan how much money you will need to get started and how much you will need to sustain operations until the business is self-supporting. 

The money can come from personal funds like a savings account or from others in the form of equity (in exchange for some ownership in the business) or debt (a loan that has to be paid back).  When securing money from others, the 5 C’s are very important: Cash, Credit/Character, Collateral, Capacity to repay and Condition of the industry.

The fourth step is to wRite a Plan.  A business plan tells where you want to go (Vision) and how you are going to get there (Mission).  A well written plan is the product of your research and shows potential lenders and investors that you have carefully thought through and researched the feasibility of the venture.  It contains marketing data, operations data and financial data that support the business concept.

Turn for Help.  Although most business owners are experts in their field, it never hurts to network with experts in other fields.  A savvy business owner will network with one or more lawyers, accountants, insurance agents, bankers and other personal mentors to help him navigate the many facets of doing business in today’s society.  The SBDC can also help in areas like marketing, human resources, exporting, government contracting, business continuity planning, strategic planning and growth strategies.

Understanding Legal Requirements.  There are many legal doorways the business owner needs to walk through to get his business set up properly and other legal considerations that need attention during business operation.  There are laws governing zoning, taxation, legal structure, licensing, employee/employer relations, safety, environment and other issues.  Legal compliance issues reveal the strength and value of the owner’s advisors and professional network.

Putting It All Together.  Now that you have been briefly introduced to some of the tasks facing an aspiring business owner, do you still want to be your own boss?  Only one out of nine people who think about starting their own business actually do it.  Maybe you are one of those who will be able to put it all together.

The SBDC has been working with the Small Farms Academy to present the Growing for Profit Agribusiness Training Series.  This is a 6 seminar, monthly workshop covering the many aspects of business management with an agricultural tint.  The next workshop on Business Finances will be presented April 15^th from 3:00pm to 6:00pm.  The cost is $25 and includes all materials and dinner.  Please contact the Small farms Academy for more information at 386-362-1725.

The SBDC has 250 consultants and 40 offices in Florida.  The newest addition to the SBDC network is the Live Oak office.  Our confidential consulting is available at no charge.  Please call us (386-362-1782) if there is any way we can help you start and grow your business.

 

Mark Yarick is a certified business consultant with the Small Business Development Center (SBDC) in Live Oak.  The SBDC in Live Oak is hosted by the University of North Florida in the offices of the Suwannee County Chamber of Commerce.