Should I start a business?

The following information is intended to make you aware of some of the pitfalls of going into business so you can make a balanced, informed decision.

• Be prepared to make mistakes. One of the ways you will learn is from your mistakes. Learn from them, examine them, and then make changes.
• You will experience failure, loss of money, hard times, and the tremendous exhilaration of independence and success if you are prepared and tough enough to stick it out. Choose your mentors carefully; very few people succeed alone. You must have a team to be successful. Treat your accountant, insurance agent, banker, lawyer, marketing firm and vendors like your partners, and demand the same.
• If the product or service you are offering is NOT UNIQUE, IT BETTER BE CHEAP. You can’t win a price war with the Wal Marts of this world; therefore, customers need a compelling reason and desire for your product or service. Be the best or get a job—the world has enough mediocre companies.
• Most startup businesses fail (80% in the first five years)—therefore, this is a serious decision and you need to make informed choices. It is also a LIFESTYLE, AND CONSUMES YOUR LIFE to the temporary detriment of your family at times, is full of sleepless nights, heartbreak, hard decisions and constant learning.
• This journey you are contemplating does not come with 40-hour work weeks, or weekends and holidays off. Vacations and retirement benefits are in the distant future, plus you get to pay for your own health insurance and match your employee’s social security taxes! If you have the desire and drive and are prepared, it can also be rewarding and lucrative. Even though you can make a good living, on the average, it takes entrepreneurs 20 years to become a millionaire. There are very few, if any, overnight successes.

Questions To Ask Yourself

• How good are my accounting skills? Can I determine breakeven, cost of goods, labor cost, fixed and variable cost?
• Who are my customers? How will I find them, and why will they do business with me vs. the competition?
• Is now the right time for my idea?
• Do I have enough working capital (money) to survive 3-6 months, or until my sales reach breakeven?
• How much risk is involved/what is the potential to make money?
• Am I—and my family--willing to make sacrifices in time and reduced income to build this business for 3-5 years?
• How good am I at picking the right person for the job, training, and motivating them so that they are happy, productive people that are owners and not renters of the company?

Helpful Links

Louisiana Small Business Development Center

Who Can Help