Many entrepreneurs aren't prepared for the difficult
lessons to be learned when starting up a new business, according to StartupJournal.com,
The Wall Street Journal Center for Entrepreneurs.
"Some of the simplest issues—having solid
contracts with suppliers, doing credit checks on customers or making sure
potential employees are who they say they are—can bring a start-up
to its knees," says Tony Lee, editor in chief of StartupJournal.com.
Problems can also arise is when an executive who has
years of managerial experience struggles to adjust to an entrepreneurial
environment. Entrepreneurs face uncharted terrain, without the back up
of support personnel or the weight of a long-established company behind
them. Says Lee, "They'll now need to take care of many details, ranging
from such mundane tasks as changing the printer paper and keeping their
own schedules, to such critical concerns as finding financial backing."
StartupJournal.com offers the following tips for executives
who yearn for the freedom of being their own bosses:
- Make sure you have a business plan that encompasses every aspect
of the new business, from financial restitution to organizational objectives.
- Research your chosen field and market—evaluate market conditions,
potential and current competitors, market demographics and available
resources.
- Examine your entire financial picture and develop a detailed budget
to efficiently manage the capital.
- Consider hiring a business advisor to help allocate funds appropriately
and to make sure the business is meeting milestones.
- Enlist the emotional support of family; cooperation from everyone
in the family can help lessen the stress involved with a new business.
One last word of advice: "If you're
thinking of quitting your corporate job to become an entrepreneur, it’s
important to be prepared for the new responsibilities you'll face,"
says Lee.
For more information go to www.startupjournal.com,
a free resource from The Wall Street Journal.
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