Are You Ready to Open Your Business?

If you’re like one of the thousands of employees in the oil industry who have been laid off, the big decision you face is what you want to do next. Sometimes, losing a full-time job is the perfect time to think seriously about starting your dream business, especially before you get caught up in the corporate world again. Ask yourself, if you don’t do it now, when will you?

A lot of the oil industry workers were victims of the “golden handcuffs,” earning good salaries that prevented them from considering leaving the industry even if they had that entrepreneurial bug that continually nagged at them. But, now’s the time. There are no guarantees with running your own business, but the rewards can be far greater than anything you can dream of or imagine if you do it right. As an employee, the company has to pay you far less than you are worth so it can make a profit. And money isn’t the only thing; there are a lot of perks that you will never realize as an employee. Some say, “it’s too risky to do my own thing, I want job security.” Well, how’s that working for you? Yes, there are risks involved, but if you are properly prepared and do your research, you can minimize those risks. Think of something you are passionate about or maybe a hobby that you can monetize. Do your research, talk with your friends and family and get their input. If it seems to make sense, put some numbers together and see if you can make a profit. You may find you should have done this a long time ago. Keep in mind that a business is like a living, breathing person that cannot take care of itself. If you decide to move forward, your responsibility is to feed it, clothe it, bathe it, and do whatever it takes to make it successful. It’s not just a business, but it becomes a lifestyle. If you’re good with that, it’s time to get started!

Here’s a list of items to consider before starting a small business:

Basic Business Considerations

• Does your product or service fulfill a need within your community? To be successful, you find a dramatic need then fill that need.

• Are you able to plan ahead and stay organized, even when things are out of control? Things happen fast, and if you let the little things bother you, you are going to have a problem.

• Do you excel at networking and building relationships? You must continually be promoting your business. If you neglect this step, you will soon be forgotten.

Money Management

• Are you in control of your finances? Money is a magnifier; if you are good with your personal finances, you should be good with your business finances. If not, there is a pending disaster on the way!

• Can you create and stick to budgets? Cash flow is the lifeblood of any business and knowing how to manage your cash is a must!

• Are you willing to take calculated risks in the beginning to reap the benefits later? Most businesses are crockpot, not microwave. You need to give it time to produce the desired result.

Determination

• Do you like challenges and problem solving? Every plan has bumps along the way. If you like a good challenge and can figure out solutions, you will be way ahead of the game.

• Are you prepared to make multiple attempts before reaching your goal? Even the best-made plans will change once you get going. You must be not willing to quit until you reach your goal.

Leadership

• Can you provide a good example for employees to follow? As the owner, you set the tone for your business. Your employees will always be watching you. What you do right they will copy a little, and what you do wrong they will copy a lot!

• Are you comfortable being the go-to person when problems arise? With employees, their problems become your problems, and you need to be ready to find a solution when the time comes.

No one ever said business ownership would be easy, but it is the most rewarding thing you will ever do. It is yours, you created it, you made it, and you are going to be proud. If you answered yes to all of these questions, it’s a good sign that you’re ready to become an entrepreneur. Give us a call and we are here to help!

Jay Thompson is a Business Consultant with the CSU Bakersfield Small Business Development Center. The CSUB SBDC provides premium, one on one, no cost consulting to small business owners in Kern, Inyo and Mono Counties. For more information visit their website at http://www.csub.edu/sbdc.