41 Responses to “How To Start A Small Business”

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  1. Eric,

    Awesome summary of what it takes to get a small business going. It’s funny that in times like these you begin to realize that self-employment is actually more secure than working for a company.

    While as a small business owner your revenue may be less than say a year ago, you’re still in a better position than someone who has been laid off and can do nothing but wait for the recession to end and businesses to start hiring again. Maybe your post will motivate some of these people to become entrepreneurs.

    • Thanks Susan! And I totally agree with your point about job security. Liz and I were just talking the other day about this. We have friends who work for someone else and their biggest concern is whether or not they’re going to make it through the next cuts without losing their jobs. For me, it’s just a matter of deciding what new angle I’m going to push when monetizing my skills and connecting with potential new clients. Like you said, I don’t wait around for people to hire. I make things happen myself. Eric

  2. Great article. I think I will bookmark this page and mention it in upand coming workbooks. You have made some great points and it is a lot to cover. That is why I am creating some videos on the process, along with workbooks.Here is video one. http://www.youtube.com/watch?v=EwrTaMCAdJo
    video two should be out the end of April. Oh yes, there will be a forum on the website http://www.creativesculpture.com/forum where those following the video can post.

    Thanks for letting me share. I’ll be back to check you out again.

  3. Eric, this is such a meaty post that I must take your recommendation and bookmark it to review in pieces. :-)

    On my initial read though I was struck by the insight of this question:

    “Would I be just as happy doing the same thing, but for someone else?”

    You could do the same work without the same responsibilities and risks. Of course you don’t get the same rewards either. But you are on target with getting people to asks the question in the first place. Many people are not cut out to do the business part of owning a business.

    Stephen – Rat Race Trap’s last blog post..Sunday Night Link Love

    • I hear ya, Stephen. It’s A LOT to take in all at once.

      Thanks! I think it’s so very important to get people to ask themselves key questions before taking such a big step as this. Eric

  4. Small business is in my blood. I can’t name a single person in my family who punches a clock in exchange for a paycheck. We just don’t know any other way. Having said that, you’re right. It isn’t for everyone. If it is for you than the rewards are there. Even with all the hard work and occasional stress, you have the ability to stop running around the track and take off through the woods. I also agree with Susan that being self-employed is actually more secure than waiting for something steady.

    Fantastic, meaty post Eric. Great job.

    Writer Dad’s last blog post..Petals Papered Our Lives Walls

  5. My husband has the ability, skills and qualifications to create any number of small businesses but he deliberately chose a five day week with flexible working hours so that he could sit down with the kids every night, take them to events, eat breakfast and evening meals with them and savour every single moment of their short time at home with us. He’s so secure in himself, he doesn’t let the source of his pay cheque affect how he defines himself. Maybe it’s because we had the kids later in life that we made this decision as a family. I’m more of an entrepreneur than he is, but it’s more of the creativity/flexibility driven kind, plus, I don’t get on as well with everyone as my husband does. I work better within my own rhythms.

    It’s crucial to know which values are your driving force behind setting up a small business.

    I have seen so many driven enrepreneurs never being satisfied, never feeling they had enough, never feeling ’secure’ enough, while all the time working themselves into burnout to provide for their kids, only to wake one day and find their kids have grown up, grown distant and been given affluence instead of time and presence.

    These were important points for me, Eric, and I’m glad you made them:

    “Make sure you have your family behind you. If you are married and/or have kids, it’s crucial that you have their support. Try and explain exactly what you do, how you will need to do it and what struggles you’ll be going through. The more clear they are on your day to day work, the more supportive they’ll be when you’re having a bad day.

    Learn to clock out from the VERY BEGINNING. A common mistake we make when starting a small business is to never clock out.”

    • Yeah, there’s no doubt that when you’re working for someone else you often have less on your mind AFTER you ‘clock out’. It’s much harder to stop working when there’s no clearly defined stopping point. That’s why it’s SO important that you define these lines for yourself, as you mentioned. Eric

  6. PS
    Eric, have you considered that there are enough fantastic points in your long posts to break them into two or even three shorter linked posts? Maybe that’s something to consider when the baby comes along. I rarely go back and read bookmarked pieces but I know I’d look forward to parts 2 and 3 in the blog. You have enough material here to provide short trust and loyalty building free e-courses too. I just don’t want to see you back in the hospital!

    • You know, Janice, I have considered this and there’s no perfect answer, but I think for now, this is working for me. If this post were any longer I would have had to have broken it up, but for me, for a recourse like this, I like having it all in one nice neat post. I agree that we often bookmark a post, never to return to it, but I feel that for those who are really interested in starting a small business and who need the kind of information in this post, they WILL come back and reference it as needed. At least that’s what I’m hoping. We’ll see.

      I did break up my posts and then turn them into a free ebook with ‘Enduring The Road To Success’ and that worked out really well. So maybe I’ll go back and forth with the idea. Thanks for getting me thinking, as always. Eric

  7. Don’t use an “About Me” page!

    Who cares about you? I know small business
    owners when they are first starting up are
    excited and want the world to know about
    the wonderful product or service they are
    unleashing.

    But people don’t care about you.

    So, instead, put a page called “About You”.
    Get into the mind of your prospective client,
    look at life from THEIR point of view. That
    will make you stand out FAST.

    For Yellow Pages Advertising, the same rule
    applies. In most categories, it’s ad after ad
    proclaiming “We’re the best!” and “Call me first!”

    To succeed in business is to offer something
    others value more than their available cash.
    If you can’t do that, nothing else matters.

    tom st. louis’s last blog post..10 Top Ways to Improve Your Yellow Pages Ad : For Personal Injury Lawyers and Other Yellow Pages Advertisers

    • You know, Tom, I’ve read about this before; the about you page idea. I think it’s genius and as you’re pointing out, pretty much common sense. I will have to disagree with one point, though. Many people DO care about who the author is. If I totally left out the details about myself, some may not care, but many of my readers wouldn’t have the same sense of connection in the writing and ideas as they do now. I agree that with certain products you shouldn’t put your face on the package, but this blog is an extension of who I am and that’s part of the value that I can provide.

      But I totally agree with the main concept and my add an about you page. I really appreciate you taking the time to share this with me! Eric

  8. Eric,

    You really touch on some of the most important aspects of becoming an entrepreneur (in fact, you touch on nearly all of them!) Your point on the 6-month hump is spot on – most new business owners get discouraged because they have unrealistic expectations at the onset. It’s usually perseverance and patience with the passing of time that make or break a new business, and both are equally important.

    I’m sure you’ve learned this even in building this blog – it takes time and perseverance to develop a dedicated readership.

    Again, thanks for such a complete post!

    Jake | Revive Your Life’s last blog post..Wellness and The Bucket Theory

    • Yeah, Jake, there are a lot of booby traps out there and when our patience wears this, it’s easy to succumb to them. They say that something like 80% of all small businesses cease to exist after five years of starting. If anything I’m surprised the percentage isn’t even higher. Eric

  9. Here are my tips for a startup:
    1. Find your passions. The best way to start a business is to do something you like, because it will motivate you to keep go on when something go wrong. It’s true that what you like must be profitable, otherwise you may remain only with a hobby. Plan to have two in one: hobby + money = your business.
    2. Marketing research. Research the market to see if there is a need for what you want to offer. If there is a market, then research what products/services are there and try to offer something new but with the same functions or the same product/service improved.

    • Excellent tips, Conn. You talk about hobby + money equaling your business. I kind of take a more pessimistic view in my post, encouraging people to think twice about turning their hobby into a business. I think that for some, it can be dangerous to put a price tag on their free time fun. It really all depends on if their willing to part with the complete freedom they had in just enjoying it as a hobby. But for some, as you point out, need to take their hobbies to the next level and start charging. I think it’s something the chew on either way.

      Thanks for sharing your thoughts. Eric

  10. Hi Eric,

    Thanks for sharing your experience in running a small business. Running a small business is not really as easy as it seem and I got to agree that it is going to be stressful at times. However, this is one good route to take to escape the 9 – 5 and it will be a very interesting journey if you love what you are doing in your small business.

    Cheers
    Vincent
    Personal Development Blogger

    Vincent’s last blog post..Oops! I Threw My Trophies Away!

    • Sure thing, Vincent. I totally agree that for many it’s worth the extra possible stress, but it’s all a matter of finding what works for YOU.

      Thanks for sharing, Eric.

  11. Hi Eric,

    Starting a small business is not for everyone only if it’s going to be full-time right from the beginning because not everyone is cut out to be an entrepreneur. However, I’d encourage everyone to start a side business such as a part-time online business or join a network marketing company while still hanging on to their day job.

    As Susan has mentioned, there is actually more security in self-employment than working for a company these days. So starting a small side business will serve to enhance one’s own financial security, yet at the same time, eliminate the risk of going into a business full time.

    Nevertheless, people should still take their side business as seriously as a full time business because the only way to ensure any business success is to be committed to it. Nothing will work out if you put in only half-hearted efforts.

    Cheers~

    Mark

    Mark Foo | TheBigDreamer.com’s last blog post..The 77 Traits Of Highly Successful People – Part 3/5

    • Hey Mark, thanks for adding your 2 cents. That’s some really great advice to start with a side job. Not nearly the commitment or risk, but a great chance to get your feet wet and see if it’s for you. But like you said, it should be taken just as seriously. Eric

  12. Excellent article, Eric.

    I used to think the whole “Entrepreneur Mindset” was just B.S., until a former client of mine decided to jump into business. He’d seen me do it for years, so he figured it was all cream. It wasn’t. He didn’t have the background, and he didn’t have the mindset, so his business failed.

    You have to have that uncontrollable urge. Otherwise, a job isn’t such a bad thing.

  13. Creating a small business is all about creating value for the clients – that’s the only reason for them to choose you instead of a bigger company.

    I’m an internet marketing consultant and blogger. When I created my small internet marketing services company, I realized that clients in my country need something different – so the touch of a blogger to a national news site, for example, is valuable to them. So I started creating value through consulting and integrating blog-like grids and conceptions into websites.

    Dimitar Nikolov’s last blog post..10 Life-Changing Books

    • Very well said, Dimitar. Value is everything. Both in cost as well as convenience and quality. It sounds like you’ve found a great way to give those things to your clients. Good for you! Eric

  14. I think this was a very well written article packed with a lot of good information. My husband is in the process of starting a small business that’s been his dream for a lot of years now. I’ve read it and I’m also saving it for him to read too.

    I tweeted too!

    • Thanks Shasta! Both for the encouraging words and for the Tweet.

      I hope the best for your husbands future endeavors. I hope this post is helpful in that process. Eric

  15. What a great, comprehensive post! I would love to start my own business, but, as you know, it’s very overwhelming (especially in this economy). Coming from a background of parents who started their own business and are very successful with it, I know it is possible. It’s important to think about an idea and stick with it. Hard work really does pay off.

    • Thanks! I’m certainly passionate about the idea because I know what kind of freedom a business can bring, but as you stated, it’s no cake walk.

      Thanks for stopping by and sharing your thoughts! :-) Eric

  16. super complete how-to guides, one question, which one is better, online business or off line business ?

    • Great question! It totally depends on the person and/or business idea.

      I would say that in most cases it wouldn’t be one or the other, but a combination of the two. There are certainly businesses that are strictly online, but I don’t know of a an off line business that wouldn’t benefit from an online presence.

      An online business gives you by far the most freedom and the greatest reach. So if I had to pick, it would definitely be online. Eric

  17. Very helpful Eric great list will have to bookmark. Also I really like you theme I think I going to start working on getting mysite setup on this. You will start to see more of me on here. I been a fan of Leo for sometime seems like your site is just as good.

    • Hey Jared, I’m glad you found the content useful. Yeah, Leo’s got a great thing going with zenhabits and I appreciate the compliment, comparing my blog to his.

      By all means, give my frugal Theme a whirl if you like. I think you’ll find it to be a solid WP theme for whatever your website/blogging needs…**ending advert now** :-) Eric

  18. I echo Susan 100 percent, so your reply might as well be to me. Thanks for this great source of reference material! You might have an About.com editor gig in your future!

    Ari Herzog’s last blog post..A Roundup of My Washington Week

  19. While business can be cold, it’s also about the relationships. Me personally, if a person does NOT care about me, then what makes you think I care about them? I want customers that want a win/win situation based on my performance, not a cold, hard business. Business is just as much about morality as it is about making money. We’re in an “At Will” business environment, a customer can fire me as much as I can fire them. However, if all you talk about is yourself and not what you can do for your customer, then I agree totally that you get rid of the About Me page.

    Kevin Cullis’s last blog post..Hear Rob McNealy talk about startups, what it takes.

  20. @Ari: Thanks. I think Susan really nailed it on the head to start off the comments. Eric

  21. @Kevin: I totally with you. That’s why they call it a business relationship. We need to know at least SOMETHING about each other to grow a strong business relationship. But as you both mentioned, an About You page may be a great addition to this website. Eric

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