So you have this restless part of you that wants to be your own boss. In command. In control. Choosing your own hours. You’re so ready to tell your employer to “Take this job and shove it” as the song goes. Only you don’t have a clue about what business you would start. You need an idea.

I’m going to share with you how to uncover at least one great key industry where you will be able to create a business that will provide for you and your loved ones over the long-term. It can be summed up in one expression, “Trends, not fads.”

Why is this important? Have you ever seen a restaurant open only to watch it close a year or two later? Remember Cabbage Patch Dolls? Beanie babies? Compact Discs? Buggy Whips? Do you have any friends who were travel agents, printers, or mortgage brokers? You can only imagine the level of uncertainty and doubt in their worlds as they watch their industries in decline.

Trends, not fads.

How do you identify a trend? Let’s take a look. What’s happening in California at this moment? According to the State of California’s Department of Finance, Hispanics will become the ethnic majority within six months.  The report states the population will continue to grow to Hispanics being 41% of the state population to whites’ 37% in 2020. The shift in consumer trends, political impact, and social changes will be gradual and permanent.

Trends, not fads.

What about nationally? Have you ever heard of renter nation? It’s been documented in a number of news outlets including USA Today. Home ownership is at its’ lowest rate in 15 years at 65.4% as reported by the US Census Bureau. The median asking rent is at its’ highest ever at $724. This may be due to both lack of supply and inflation, but the trend is unmistakable. There is a shift from owning a home to renting. Take a look at hydraulic fracturing and how it is affecting our oil and gas industries. The International Energy Agency forecasts the US will produce more energy than Saudi Arabia by 2020 and will be energy independent 10 years later.

Trends, not fads.

Global challenges to discuss? The World Health Organization reports 3.4 million people die each year from water related diseases. The World Bank continues to sound the alarm about rising food prices – grain is up 12% against the same time last year and almost at the all-time high it reached in 2008. Urban drift is the norm – the United Nations predicts by 2050 that 64.1%  of the developing and 85.9%developed world will be urbanized.

Trends, not fads.

You’re itching to make a move from your current situation by can’t find an idea that’s good enough to take the risk. Here are three general steps you can follow:

1. Make a list of the things you like.
2. Out of that list, figure out which ones of those are part of long-term trends.
3. Start researching the field by reading everything available and interviewing anyone who will speak to you.

Guaranteed you will find the industry where you’ll want to apply your skills and passion for your next chapter in life.

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With many new choices every year on top of regular favorites, it’s difficult to answer the question, “Which franchise should I buy?”

It is as easy as going to a current issue of Entrepreneur magazine. They have lots of lists for nearly any category and budget. It is a good a place as any to start. For me, I quickly find all the information confusing. It’s an easy way to lose hours to the internet without being much smarter than before.

The real question lies in answering, “What do I want to do?” Does retail (and it’s hours) interest you? Does the service industry (and it’s employees) have a pull on you? Perhaps you prefer restaurants (both hours and employees!). Will you be happy with any of these choices?

One way to answer these questions is to take a look at what you have already done. Chances are you have a bunch of experiences – some of these you like, some you don’t. There’s a classic exercise of writing the stories behind several of the accomplishments of which you’re most proud. As you look through these stories, look for common threads of activities. They may come out as verbs such as lead, coordinate, or analyze. They may show up as nouns for different places you’ve been or organizations of which you’ve been a member.

There’s an exercise to highlight what you dislike as well. Make a list of things you’ve done that you haven’t enjoyed. Keep this at a work level unless the personal experience can relate to your job or profession. The key step in this exercise is to find the negative and then write down the opposite of that negative. This attribute is the positive quality you’d like to see in your next line of work. For example, if you had a manager who micro managed you, you may want more autonomy in what you choose to do next.

Think closely about the franchise that fits you best – while there are plenty of people looking to sell you what they have, only you can figure out what’s best for you.

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For some who are starting a small business, they wonder if they should buy a franchise. This can make perfect sense. This post shares three tips one should consider when evaluating any franchise.

I own three franchises. Each time I buy one, I swear that I’ll never buy another. I hate the royalty fees, the challenges of dealing with a franchisor, and the limitations on ways to grow the business. The truth is the franchises offer good systems that allow an operator to get up and running more quickly with fewer errors than if they were to start a small business on their own.

There are plenty of sites about the high level pros and cons of buying a franchise. You get a system, access to a franchise community, and corporate support for things like marketing and back office. On the other hand, you may have limited ability to make changes, have to wait for new technology/products, and may not agree with everything the franchisor does. It can challenge the traditional business model of customer and supplier by entering the franchisor who you may see as a supplier, but they may or may not view you as a customer.

Not all franchises are created equal; how does one evaluate them? Here are some of the fundamental questions I explore.

What is the fundamental strength of the franchise?

Does it take advantage of a long-term trend? Does it market to an unserved group? Does it have an offering that is unique? Another cleaning company, burger joint, or home-based opportunity can be difficult to differentiate. Be sure that yours is not the same as others; this might requiring a close friend to be really truthful if you can’t see it yourself.

Can you do it cheaper on your own?

When I bought my property management franchise, I created a business plan. With the forecasted financial statements, it was possible to evaluate if it was more expensive to start an independent property management company versus buying into a franchise. The analysis showed the franchise to be a quick start package in this situation; it appeared the company could be started faster and cheaper if a franchise format was followed. It was not so clear with the cleaning businesses. Looking back, there was a huge up-front monetary investment which might have been possible to avoid. You need to do the calculation to find both financially and personally what is the best route for you.

How will you sell your franchise?

This is a point that is easy to overlook when starting. Everything is exciting and selling a business is far from top of mind. Before spending a cent on any business, one should evaluate how it will end. In the case of franchising, talk to franchisees who have recently sold. Did the franchisor have clear criteria to approve the buyer or were there challenges in meeting corporate’s requirements? Be sure to understand what you’ll have to go through when the time comes to sell your business.

These are just three points to consider; an accountant can give you an extremely detailed checklist. Have fun with the process and get everything in writing. Most importantly, get started!

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, take action by finding your best business idea.

The post Starting a Small Business: Should I Buy a Franchise? appeared first on Starting A Small Business Now.

by Caleb Page

You may wonder if now is the time for starting a business. For some it is a difficult question. Those with stable, well-paying jobs have a difficult decision to make. Let’s look at the reasons one would change from their current occupation to start a business:

• You don’t see a clear future in your current line of work. There are lots of studies about which careers show great potential in the future and which don’t. This infographic from Rasmussen College does a good job of looking at both majors and industries – those of you with a lot of experience will need to think about how this lines up with your stage in life:

• If you decide your career or industry needs to change, you may also find that other employers are not different. You can see the professional options they have available. You are also confident that the reality is an employer is not going to make your interests their #1 priority.

Start Another Career or Start a Business

At a fork in the road?

If your current occupation has limits, you can choose to retool for another career or seriously consider entrepreneurship. Retooling (aka going back to school) requires a large investment where one runs the risk of being in the same place as before (no future with limited options). This is the point where you should think about the merits of starting a business:

1. You create your future. You can choose your industry (within limits) and evolve with the external changes. While you do need to worry about cash flow, there’s no more fear of layoff notices.
2. Every dollar earned works twice for you. Revenue immediately becomes net income – each year of increasingly positive net income improves the value of the business for when you eventually sell it. There are few investments that offer the same return.
3. You have the opportunity to develop multiple revenue streams and not be limited to stock market investments controlled by institutional investors.
4. Some of the best tax advantages go to business owners such as car expenses, some travel, and depreciation expense.
5. One of the largest intangible benefits is control of your time. Honestly, a business owner has to work hard. Yet they can choose how hard and when they work.
6. You have the potential to develop recurring income. One of the largest problems with having an employer is that your paycheck is a way of settling accounts for the labor you provided. When that pay period is over and paid, you’re only worth what the employer is willing to pay in the next period. When you stop, that’s it. If you set up a business correctly, it will keep earning regardless of the amount of labor you put into it.

Why Start a Business Now?

The reality if this is a dream of yours, there is no better day to start than today.

• The economic recovery is still in question – jobs are still in danger. Advanced Micro Devices, Inc. reported layoffs of 12,000 on October 16th, 2012. The public sector is still challenged – Ithaca is looking at firefighter layoffs and a bunch of EMTs in Lawrence, Indiana were laid off on October 14th. Even the folks at The Weather Channel aren’t safe; 7% of their workforce was laid off.
• Valuations of many existing businesses that weathered the recession are low. This presents a buying opportunity like real estate in Phoenix or Las Vegas.
• Franchises are giving unheard of incentives for new owner acquisitions.
• Stock investments should have mostly recovered since the crash. This may be the strongest portfolios will be for a while.

What Do I Do Next?

Start today! Here are a few actions you can take to get moving:

• Action: Be clear on your goals about starting a business. Get advice if you need it. Investing a few dollars today can prevent the loss of thousands tomorrow.
• Action: List what resources you have available. Create a personal financial statement.
• Action: Develop a picture of your perfect business and find it. Look at Dane Carlson’s site. Talk to business brokers and owners. Look at Craigslist small business section. Go to franchise fairs and small business expos.
• Action: As you find ideas you like, draft business plans to see how they might fit with your requirements.

This is a liberating experience – enjoy the ride as much as arriving at the destination!

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, get started by finding your best business idea.

flickr credits: RiverRatt3, DLR_de

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I recently learned a few great tips to help with starting a small business. The main theme is about taking action. It’s fairly easy to take action on day 1. To sustain it through day 100 is harder. Keeping with it through day 1000 shows real commitment. If you start thinking about day 1000 on day 1, you may never begin. It’s easier to focus on what you have to do now an eye toward your future vision. That’s where making the behaviors comes into your life.

This isn’t about military discipline; it’s about focus and intention. Have you prioritized your day around what is truly important to you? I like to say that one must evenly apply consistent pressure. Another picture is that of the mechanical horse races although you are behind each one moving from one to the other to advance them. That’s fine as long as each horse represents one of your major goals. Don’t start pushing the distraction horse! Here are the keys to making the behaviors:

Starting a Small Business: Time Management

I was recently reminded of this through Craig Ballantyne’s Early to Rise (ETR) newsletter. I was one of those Franklin Covey followers (remember the A, B, and C priorities?). With the shift to electronic format, I rarely carry something the size of a daily planner around. At most I have a pad of paper. That pad of paper is enough if used correctly.

• The first step is to plan your day. Some people get down to 15 minute increments. I usually run in 1/2 hour to hour blocks starting with meditation and exercise. Don’t forget family time. When I restarted the practice, I forgot to think about my most important relationship and how their days work. I block out 45 minutes or so to be available at breakfast. The same in the afternoon and evenings.
• The second step is to motivate. This usually means waking up earlier and going to bed on time. Using a technique suggested in ETR, I just moved my alarm clock back further and further to a 5 am wake up. It’s just like my military days and feels great to have a lot done by the time people are rolling into work.

 Starting a Small Business: Eliminate Distractions

Small talk is fine, but going sideways while looking at something interesting isn’t. Unless it’s in line with one of the horses you’re pushing. I’ve never understood how kids can do homework and watch television. I suspect they are turning in sub-standard work.

What’s your background noise? Is it television? Music with vocals? People in the room? The phone? In manufacturing, there is the concept of non-value added time. This is the time in the manufacturing process where the product is not actually being made. It is in transit, being inspected, or waiting for the next operation. When we look at the cost of making a product, we calculate how much time manufacturing line time is needed. The transit time before and after an operation is called load/unload. You might be amazed at how much time is spent just moving  product into place for assembly and then moving on to the next station. It’s the same with distractions. How much time do you spend in load/unload as you shift focus from one activity to the next?

Starting a Small Business: Delegate

I like to say I am inherently lazy. It’s half-true. I constantly focused on finding ways for others to do the tasks I find myself doing. I recently helped with an initiative to market the services of one of our businesses at a Farmer’s Market. About 90 minutes into the thing, I’m saying to my wife that it is easy to hire someone to spend their Saturday or Sunday at a booth doing this. You can guess about the look I got – I’m going to have to invest a few more weekends until I bring her around to this. If the activity doesn’t help to push one of your horses, try to get it off of your plate  onto someone else’s.

Which activities do I keep? I focus my day on revenue generation. If everything I do is revenue generating, then I focus on maximizing the revenue.

Are you making the behaviors? What is holding you back? Chances are the answer is you. Choose one area on which to focus and apply it to your life for the next month. Share with me what you decide.

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, get started by finding your best business idea.

The post Starting a Small Business: Making the Behaviors appeared first on Starting A Small Business Now.

Normally, this blog is about starting a small business. Today I focus on the character traits needed for change. It doesn’t matter if you are starting a business, staying in a career, or are still a student. There are many times in life when we want to make a change. Having done this several times in my career, here are the steps I follow:

1. Decide to Take Action. This is the simplest and the hardest step. It’s a matter of committing to effecting change in your life. What makes it simple is that you don’t really have to do anything. You just need to sincerely decide that it’s time to shift. That can just be telling yourself that you’ll start exercising for the next 30 days, you’ll sit down for 1/2 an hour each day to outline that book you dream of writing, or spend an hour each day looking at long-term sustainable small business opportunities to improve your quality of life. Action: Decide today of one thing which you can commit to start. Bonus actions: a)Write it down and post it on your bathroom mirror or computer screen. Research shows written goals are achieved more often than non-written goals. This probably has to do with intention. b)Tell someone about it. The odds of achieving your goal goes up when you publicize your direction. I have a 17-year-old that wants to be president and will tell everyone who will listen. She has another 18 years to go before she’s qualified, so we’ll see…
2. Focus. Don’t start a bunch of goals unless you already mastered this process. Choose only one and see it through. Moving slowly with quality effort will pay off larger than moving quickly with poorly thought execution. Action: Be specific about your goal using the SMART (specific, measurable, attainable, realistic and time bound) acronym.
3. Take small steps. Large goals like marathons and job changes are difficult to pull off in one shot. That means breaking down the activity into smaller achievable tasks. A significant sporting event requires a build up of practice events. Job changes can start with informational interviewing to target the specific area that interests you. Creating a series of tasks is fun because you can cross off a checklist while making progress toward your end goal. Be as specific as possible. This goes with the story of the long jumper breaking the world record. The reporter asks him, “How do you feel breaking that record for the first time ever?” The long jumper responds, “I’ve done it a thousand times before – in my mind.” Action: Write down the tasks involved to achieve your goal. Bonus actions: a) Figure out how long it will take to do each task. b) Assign start and end dates for each task based on your estimates.
4. Hold yourself accountable. As you work through your small steps, find a way to hold yourself to your plan. That might mean putting a schedule in place, rewarding yourself for meeting deadlines, or putting an action in place if you miss your dates. An example of an action for missing could be to take away something you enjoy like desserts or to not do anything else until you complete the item. I’m awful at this, so I lean on my family. My wife’s great at asking, “What are you doing here?” My daughter even asks, “Are you blogging?” Your support system is your best source of accountability. Action: Write down what you will do if your plan slips. Punishments are fine; don’t make them too painful.
5. Act with conviction. Accomplishments usually start out with a dream, vision, or idea. In the beginning stages it is exciting. Be ready for the boring stages. I can remember the 17-mile and 21-mile practice runs when I trained for the Detroit marathon. These in between runs are long and boring and have no significance. Plus, your family might be asking where you’re going for 2-3 hours on a weekend again. If this is a real goal for you, act with the conviction that you’re doing it to become a better person in the end. That better person ultimately is a source of inspiration and balance. Action: Declare your long term dream and fight for it. Even your closest supporters may challenge it. It’s your dream; uniquely yours. Pursue it with the hunger and vigor you admire in others. Everyone else will let you quit. Except you and your emotional attachment to your vision.

What are you ready to change? Can you choose a small goal and start? To quote Lao Tzu, “The journey of a thousand miles begins with a single step.”

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, get started by finding your best business idea.

The post 5 Qualities You Must Have to Make a Change appeared first on Starting A Small Business Now.

The following is an excerpt from a speech I recently gave:

“Is what you do who you are? Is the way you spend your day a fair reflection of your personality and beliefs?

Another way of looking at the question is to answer what it is that you do with your time on Earth? How do you describe it?

• Do you speak of yourself in terms of your job? Perhaps you’re a manager, a technical expert, a writer, or a civil servant. Is using your vocation enough to explain who you are?
• Do you use your function to tell others what you do? Being a mom, a dad, a student, a coach, or a guide helps to show your relationship to others in this world. Does it show your relationship to yourself?
• How did you get to this stage or point in your life? Was it through intention, a series of mistakes, or the path of least resistance?

How do you spend your time? Being ‘crazy busy’ can be a way of life. It can look meaningful but in reality is empty if ‘crazy busy’ is full of running from one meeting to the next or one store to another. Can you look back on how you spend your day with a deep feeling of accomplishment or personal improvement?

Some people feel something absent from their lives. It’s hard to point to the exact cause, but it’s felt from the lack of time available or not having complete peace of mind. It’s as if they can’t find a sense of purpose. Imagine living a life where you can’t find your contribution to the world. One reason people don’t find their greater meaning is due to distractions. Television and the internet are easy to blame, but what about how we speak and listen to each other? Do we hear fully? Are we thinking of our response when we should be listening? Do we interrupt with our own viewpoints? Are we really engaged?

Doing just a job, a role, being busy, or not actively listening detract from a life of intention. This intention is deeply personal and is a reflection of your aspirations and connection to the world. Finding your path to a life of intention begins with values:

• Is there a larger direction to life?
• Is there a larger direction to yours?

Is there another way to look at what you do? Rather than work with a label applied to you, you can create your own. This requires you to look inside and find what motivates you. It is not as hard as it sounds. Many of the experiences of which you are proud show your values.

How do you want to be remembered once your 100 years (or less) is over? Is it consistent with what you are doing today? It’s not too late to start.

Do you know who Saint Augustine was? He lived around 400 AD and was raised in a home in what is now Algiers with a Christian mother and a pagan father. His mother tried to raise him as a Christian but was not successful. He wrote that he lived sinfully; he had a child by a concubine among other things. It took until he was 32 for his mother’s wishes and prayers to get through to him. He converted to Christianity and later became a prolific writer and one of the great Christian theologians.

How about Mother Teresa? She was 40 when she received permission to start what would become the Missionaries of Charity which grew to 4,000 members when she died in 1997.

If religion isn’t your thing, consider other examples:

• Bill Wilson didn’t start Alcoholics Anonymous until he was in his 40′s.
• Stan Lee created Spider Man when he was 43.
• Julia Child only learned to cook at 40 and started her television show at 50.
• Ray Kroc started McDonald’s at 59 and Colonel Sanders started Kentucky Fried Chicken at 65.
• Laura Ingalls Wilder wrote The Little House on the Prairie series in her 60′s.
• Grandma Moses took up painting at 76 and produced more than 1000 paintings over 25 years.

So what drives you? Is it a creative outlet, a mission, or the enjoyment of a business? Does it involve people, information, or things? Is there a spiritual connection or another motivation such as quality of life or relationships? Sometimes it is difficult to find the answers – one has to find a quiet place away from distractions just to get started.

Here’s where it’s your turn to take action. I give you three steps:

1. Write down your values. Take the time to think about these. They should be a source of inspiration to you and long-lasting. This step can take some time. Share them with others around you and get their reaction. You may come up with other ideas as a result.
2. Look at how your values match with what you do. Are your daily activities in line with your long-term values? Is your work congruent with your view of the world?
3. Choose one thing you would like to change and focus on that until satisfied. It’s important not to start too many initiatives; just prioritize one and work on it until closed.

This will get you closer to what you do being who you are.

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This is the last post of a 30-day series on how to start a business. Yesterday I covered strategy changes. Today we finish as I continue forward with the business.

We’re there. The business is running. Is it perfect? No; this is a work in process

Take a look at what’s been accomplished – we identified a product and tested it. I built a supply chain between developers and call centers. We created fulfillment and billing processes. I recruited independent contractors to sell. Two partners joined the business.

Next week we are opening a small call center in Provo, Utah. I’m amazed at how less expensive business is in Utah versus California. The annual fee for a LLC in Utah is $15. In California one has to pay $800.

It was great to share this part of the experience. I hope you benefited from the series. The point is you can start a business if you want it – there is plenty of help available. I’m also clear that I skipped a few steps due to only having 30 days. It wasn’t intentional. Please comment on the blog with any questions and I’ll respond shortly.

Now back to our weekly blog efforts (until the next series)!

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and to start creating your own, get started by finding your best business idea.

The post 30 Days to Start a Business: Onward! (Day 30) appeared first on Starting A Small Business Now.

This is the 29th post of a 30-day series on how to start a business. Yesterday I covered sales objections. Today I discuss strategy changes.

I didn’t realize yesterday was Blog Action Day. The topic was the “Power of We.” Had I known it, I would have made this post yesterday.

In the last few weeks, the business has taken a twist. My first direction of a single person run business with distributed US-based sales representatives has evolved in two ways.

The first change is that I am forming a partnership with two other guys that complement my skills. We all have call center experience (mine is old), but one brings recent direct sales management experience and the other is more recently out of corporate and can bring best practices from that sector. I’m excited about working with two other talented people; I’m confident that the ideas we bring as a team will be better than what each of us could do individually. I suppose that’s the “Power of We.”

The second change is with the sales model. We are continuing the distributed independent contractors, but are also working with on of our outsourced call centers to train them in selling our product. Additionally, one of the partners will lead a small call center in Provo, Utah. We’re interested in seeing the comparison of the results – Provo has a great base of talent for this industry and our outsourced call center has years of experience.

These changes wouldn’t have taken place without involving partners. I suppose that’s the “Power of We.”

How are you using the “Power of We” in your line of work?

Tomorrow is our last day as we finish the series about starting a small business!

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, get started by finding your best business idea.

The post 30 Days to Start a Business: Strategy Changes (Day 29) appeared first on Starting A Small Business Now.

This is the 28th post of a 30-day series on how to start a business. Yesterday I covered training. Today I review sales objections.

If you are going to open your own business, get used to people saying, “No.” Even the best closers have a close rate lower than 100%. There are many reasons – the timing isn’t right, no money, the product/service is not a good fit, or the one that we can control: the prospect doesn’t see the value.

How many times have you lost a sale where you were confident the prospect needed what you offer? It happens to all of use sometimes. Why didn’t they buy? Many times it is because we did not explain the benefit of the product/service in a way that made enough sense to the buyer. How do you handle this? It usually involves listening.

I find that the times I don’t make a sale are the times when I am not fully engaged with the prospect – I am not clear on the problem they need to solve or I am distracted. These are warning points that it’s time to start asking pointed questions to learn more about the situation.

Think about the business you want to start – are you ready for the objections you may receive? How will you react? How will you show the value of your product/service?

Tomorrow we discuss strategy changes as we continue the series about starting a small business.

Start Today! If you’ve decided that it’s time to stop reading others’ experiences and create your own, get started by finding your best business idea.

The post 30 Days to Start a Business: Sales Objections (Day 28) appeared first on Starting A Small Business Now.