OPEN FOR BUSINESS TIPS FOR TURNING YOUR GREAT IDEA INTO A THRIVING CAREER.Byline: Gregory J. Wilcox Staff Writer You're fed up with that dead-end job and ready for a new career. But this time, no more of this working for someone else. You're ready to turn that brilliant idea you've been sitting on into your own business. It seems so simple. After all, if Bill "Microsoft" Gates and Jeff "Amazon.com" Bezos could do it, well, you can, too. Maybe so. But there is nothing simple about starting a business, and the endeavor is fraught fraught adj. 1. Filled with a specified element or elements; charged: an incident fraught with danger; an evening fraught with high drama. 2. with potential missteps that can lead to the poorhouse poor·house n. An establishment maintained at public expense as housing for the homeless. poorhouse Noun same as workhouse Noun 1. instead of a mansion. Even so, thousands of workers strike out on their own each year. Elaine Gaspard, program director of the Pacoima-based Northeast Valley Small Business Development Center, operated by the nonprofit A corporation or an association that conducts business for the benefit of the general public without shareholders and without a profit motive. Nonprofits are also called not-for-profit corporations. Nonprofit corporations are created according to state law. Valley Economic Development Center, offers tips that can turn a great idea into a thriving career: GET YOUR FINANCES IN ORDER. If possible, be debt-free. New businesses can consume huge chunks of cash, so pay off as many bills as possible. HAVE LARGE QUANTITIES OF STAMINA Stamina Staying power, endurance. Mentioned in: Tai Chi AND PATIENCE. You are trading in that eight-hour day eight-hour day: see labor law. for a new career that will demand as much attention as a new baby. "This is every waking hour. This is your passion and something you enjoy, and this is why people do it. It's almost like being a golf addict Any individual who habitually uses any narcotic drug so as to endanger the public morals, health, safety, or welfare, or who is so drawn to the use of such narcotic drugs as to have lost the power of self-control with reference to his or her drug use. ," said Gaspard. WRITE A BUSINESS PLAN. There are a number of self-help books that detail the process. In general it should define your market, such as local, national or international in scope. Also include a detailed outline of how you plan to achieve your goal. The business plan should also have an economic component that shows potential investors how your idea translates into profit. "If it doesn't work on paper, it won't work," Gaspard said. "Some people say, Oh, well, the numbers don't work, but I'll do it anyway on a wing and a prayer." CRUNCH THE NUMBERS. Calculate your economic and accounting profit and use this as a guide on whether to move forward with the idea. Accounting profit means that at the end of the day, you have an amount greater than zero to put in the bank. Consider your other opportunities to make money. If your skills justify a $40,000-a-year job and you can't bring in this amount with your small business, then there is no economic profit and maybe you should keep the job. PLAN ON MAKING MONEY RIGHT AWAY. One often-quoted rule of thumb is be prepared to lose money for a up to the first five years. Gaspard said that in most cases this is bunk bunk, bunker large storage bin. bunk forage forage, usually ensilage stored in a large storage bunk and made available to cattle or other livestock along a face of the storage. . "Most of my most successful clients have made money right off the bat. Going into business to lose money is not smart," she said. The only time losing money might make sense would be if you have secured an equity investment to develop a new technology or open a new market. RAISE MONEY. Be prepared to spend some of your own money and also ask friends and family for some of theirs. Most small businesses are financed by a combination of this and consumer credit. USE OTHER PEOPLE'S MONEY. One way is applying for a federal Small Business Administration loan, because banks won't typically fund start-ups. Generally, you will need a clean credit report no bankruptcies for most SBA SBA abbr. Small Business Administration Noun 1. SBA - an independent agency of the United States government that protects the interests of small businesses and ensures that they receive a fair share of government loans. You also will need your last three tax returns and be able to come up with about 30 percent of the amount you are seeking. The Valley Economic Development Center also can make loans up to $25,000 and the credit conditions are not as strict. "If you don't have a 30 percent equity investment and you can start with $25,000 or less, then use this loan program," Gaspard said. DON'T SKIMP skimp v. skimped, skimp·ing, skimps v.tr. 1. To deal with hastily, carelessly, or with poor material: concentrated on reelection, skimping other matters. 2. ON TECHNOLOGY. Buy the best equipment and fastest Internet connection you can afford. Your business partners expect nothing less and it will help make your staff more productive. SPEND MONEY WISELY. Use the majority of your capital to grow the business, not on non-business items. COMPARE YOURSELF. Benchmark your goals against other successful companies like yours. Find a publicly traded company publicly traded company A company whose shares of common stock are held by the public and are available for purchase by investors. The shares of publicly traded firms are bought and sold on the organized exchanges or in the over-the-counter market. in the same sort of business and then try to match its performance. Get copies of the annual report or Form 10K and study the financial statements. RESOLUTION SOLUTION 99/00 To help you make and fulfill ful·fill also ful·fil tr.v. ful·filled, ful·fill·ing, ful·fills also ful·fils 1. To bring into actuality; effect: fulfilled their promises. 2. your New Year's promises, we offer Resolution Solutions, a continuing series of guides that provide advice on some of the more important financial questions facing readers today. WEDNESDAY: Nervous about speaking in public? We'll hold your hand as experts offer advice on how to make a knock-'em-dead presentation. TODAY: Tired of the rat race? Here's how to strike out on your own. FRIDAY: Just married, starting a business or having a child? Now it's time It's Time was a successful political campaign run by the Australian Labor Party (ALP) under Gough Whitlam at the 1972 election in Australia. Campaigning on the perceived need for change after 23 years of conservative (Liberal Party of Australia) government, Labor put forward a to buy a life insurance policy to protect your loved ones loved ones npl → seres mpl queridos loved ones npl → proches mpl et amis chers loved ones love npl or investments in the event of your untimely death. For previous Resolution Solutions, check the Daily News' Web site at www.DailyNews.com. Or call the back-issues department of the Daily News at (818) 713-3000. CAPTION(S): Box Box: RESOLUTION SOLUTION 99/00 (see text) |
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