How To Start A Small Risk Free Business?

It is a challenge and a big deal for starting a new business. There are countless opportunities and many more to explore. Channelising your efforts is necessary for your success. Risk is involved in your path however, with detailed planning and smart decision making you can minimize your risks and grow stronger. After all good decision making combined with positive thinking will definitely help you to be successful.

Many small Businesses fail. You can't believe this as there are many coming up every day and we see them around. For being successful one must read literature, books, do research and try to collect information from people who are successful. Try to get a mentor for yourself to shorten your learning curve. Analyze what they did and how did they make it so big. What were the obstacles that they overcame and how? This will definitely help you to get motivation and encouragement for future.

Get feedback on how to do effective advertising or marketing campaign to promote your small business. What kind of promotions did they make? How did they started promotion in the market about their business? Who all they hired with them and what task or activities they performed. You must sought answers to such questions before beginning.

I understand that each and every business case is different however we can see some key points that every famous entrepreneur can share with us to help us along our way. It is simply more effective that reading a book. This kind of information sharing is way beyond any kind of research.

Don't just consider starting a business means opening a shop and stuffing it with products or services. It isn't just a start but a long term relationship building. Once you're business is running successfully you need to think about the fund management, maintenance of accounts, advertisement, manpower etc. A substantial time and money will be invested in your endeavor. You must need to analyze your future and manage your business accordingly to overcome any obstacles etc.

My success mantra for you is to stay calm, focussed, positive and strong in your endeavor. You must offer your customers high quality products while keeping greater customer satisfaction as your key goal. if you have a good product or service people will definitely realise this and will invest in your business. So don't worry and stay focussed towards your goals.

Small Business Owners - A Rare Breed.

Willingness to Take Risks

You will constantly find yourself having to make decisions about where and how to advertise, which areas to specialise in, when to invest in new equipment, and so on.

Although this constant decision-making can be stressful, it can also be satisfying and enjoyable. Solving problems and making decisions can give you a sense of power and confidence.

Enthusiasm

Enthusiasm is an essential ingredient of every entrepreneur. If you are half-hearted about your new venture you may have difficulty summoning sufficient determination to overcome problems when they arise.

If you are enthusiastic, on the other hand, you will relish the challenges your business presents. What's more, your enthusiasm will rub off onto customers, employees (if you have them) and other people you have to deal with.

Most of us would far rather work with or buy from someone who is enthusiastic and enjoys their work, rather than someone who is permanently depressed about it.

Ambition

Most entrepreneurs have a driving ambition to achieve the best they can for themselves and their loved ones; in addition to money, this may include financial security and a better way of life.

With such ambitions they can cope with any setbacks along the way, because in their mind they have a goal or vision which drives them on.

Ambition and determination together can overcome many obstacles. In business, as in most others aspects of life, if you know what you want and are determined to achieve it, the chances are excellent that you will succeed.

Honesty and Willingness to Give Good Service

Every business depends on a circle of satisfied customers for its continuing survival. If people are pleased with the service they have received from you, they are likely to recommend you to others as well as keep coming back themselves.

By contrast, if you give poor service then, even if they do not complain at the time, they will not return; and rather than recommend you to others, they will warn them off. If you have a good reputation this will ensure that more people keep coming to you.

For this reason, successful entrepreneurs go to great lengths to obtain and keep a good name for themselves.

Reference:
Tony Jacowski is a quality analyst for The MBA Journal. Aveta Solutions - Six Sigma Online offers online six sigma training and certification classes for lean six sigma, black belts, green belts, and yellow belts.

Is Entrepreneurship For You?

In business, there are no guarantees. There is simply no way to eliminate all the risks associated with starting a small business - but you can improve your chances of success with good planning, preparation, and insight. Start by evaluating your strengths and weaknesses as a potential owner and manager of a small business. Carefully consider each of the following questions:

Are you a self-starter? It will be entirely up to you to develop projects, organize your time, and follow through on details.

How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, and professionals such as lawyers, accountants, or consultants. Can you deal with a demanding client, an unreliable vendor, or a cranky receptionist if your business interests demand it?

How good are you at making decisions? Small business owners are required to make decisions constantly - often quickly, independently, and under pressure.

Do you have the physical and emotional stamina to run a business? Business ownership can be exciting, but it's also a lot of work. Can you face six or seven 12-­hour workdays every week?

How well do you plan and organize? Research indicates that poor planning is responsible for most business failures. Good organization ­ of financials, inventory, schedules, and production ­can help you avoid many pitfalls.

Is your drive strong enough? Running a business can wear you down emotionally. Some business owners burn out quickly from having to carry all the responsibility for the success of their business on their own shoulders. Strong motivation will help you survive slowdowns and periods of burnout.

How will the business affect your family? The first few years of business start­up can be hard on family life. It's important for family members to know what to expect and for you to be able to trust that they will support you during this time. There also may be financial difficulties until the business becomes profitable, which could take months or years. You may have to adjust to a lower standard of living or put family assets at risk in the short-term.

Why Small Businesses Fail

Success in business is never automatic. It isn't strictly based on luck - although a little never hurts. It depends primarily on the owner's foresight and organization. Even then, of course, there are no guarantees.

Starting a small business is always risky, and the chance of success is slim. According to the U.S. Small Business Administration, roughly 50% of small businesses fail within the first five years.

In his book Small Business Management, Michael Ames gives the following reasons for small business failure:

• Lack of experience
• Insufficient capital (money)
• Poor location
• Poor inventory management
• Over-investment in fixed assets
• Poor credit arrangements
• Personal use of business funds
• Unexpected growth

Gustav Berle adds two more reasons in The Do It Yourself Business Book:

• Competition
• Low sales

More Reasons Why Small Businesses Fail

These figures aren't meant to scare you, but to prepare you for the rocky path ahead. Underestimating the difficulty of starting a business is one of the biggest obstacles entrepreneurs face. However, success can be yours if you are patient, willing to work hard, and take all the necessary steps.

On the Upside

It's true that there are many reasons not to start your own business. But for the right person, the advantages of business ownership far outweigh the risks.

You will be your own boss.
Hard work and long hours directly benefit you, rather than increasing profits for someone else.
Earning and growth potential are far greater.
A new venture is as exciting as it is risky.
Running a business provides endless challenge and opportunities for learning.

For more related information, check out:
Small Business Planner

Coach CEOs Through Stress for Success.

Stress for Success...

In times of crisis, the natural response is to buckle down, lie low and try to maintain the status quo - which, in many cases, means the bottom line. The unfortunate side effect is learning and development initiatives, especially at the senior management level, often decline.

According to Dr. Peter Warshaw, a vice president at RHR International, a group of corporate psychologists, now is the time to offer CEOs and senior managers developmental support so they can navigate the company through current stormy conditions.

"In very turbulent times, these are the most meaningful developmental experiences that executives have," Warshaw said. "If their organizations provide them with a little bit of support, a little bit of reflection, and a little bit of a safety net, the development of our executives through this is going to be really, really tremendous. Talent development, HR folks and line managers need to think about [this] as a real opportunity to make lemonade out of lemons."

Warshaw outlined a few key pieces of advice talent managers can convey to their senior leaders to help them help their companies:

1. Lead and manage effectively.
"Crisis leadership is one that's not dictatorial, but people are really looking for leaders to put stakes in the ground and say, 'This is what we stand for,'" Warshaw said. "It's very difficult and challenging to lead with both the demeanor of being calm and in control and at the same time invoke a high sense of urgency in the organization. [But it] is extremely important."

2. Clarify the message.
"If the only message that is coming from the C-suite is 'cut costs' - which is certainly an important one, it's very reactive - it sends fear and trepidation throughout the organization," Warshaw said.

CEOs and senior managers should reiterate what the company stands for and explain that, for the company to continue to stand for that, layoffs or budget cuts are unpleasant requirements. However, this is not the time for grand vision, Warshaw said. Keep it simple and current.

3. Swap scenario planning for strategic planning.
"The whole idea of strategic planning is out the window. What the best CEOs and CFOs are doing these days is what we call scenario planning," Warshaw said. "They're working out the scenarios in advance and asking the 'what if' questions: 'What are we going to do if our revenue drops 10 percent?' 'What are we going to do if our revenue drops 30 percent?' [They should have] those plans at least reasonably thought through so that if the bottom drops again, they're prepared, and they're not running around like chickens with their heads cut off and having knee-jerk reactions that may be damaging to the company."

4. Ask for help.
"This is not the time for executives to go off alone or make the decisions in a singularly top-down way," Warshaw said. Typically, it's very difficult for CEOs to ask for help, he said, but it's critical right now. There are two kinds of help that should be sought: internal and external. Internally, CEOs should meet regularly with senior teams to make sure they have the best thinking at the table. They also should hold one another accountable for their actions. Externally, CEOs should cultivate relationships with advisers, board members or even groups of other CEOs so they can let their guards down, engage in self reflection, talk about their concerns and get emotional support, Warshaw said.

"It's those people outside the organization that are particularly helpful around things, CEOs and other senior executives can't really show and disclose within their organization," he said. "Not reaching out doesn't necessarily mean disaster, but it is a recipe for disaster."

5. Develop new skills.
"Executives are being forced to develop new skills by necessity," Warshaw said. For example, one leader might be very analytical and make decisions based reports only, while another might be more intuitive and listen to his or her gut.

"In these turbulent times, neither one of those styles is sufficient," he explained. "People who are analytical have to learn to be more intuitive, and people who are intuitive have to be more analytical [while also] rely [ing] on the best thinking of their teams to help balance that out."

Reference:
Agatha Gilmore
[About the Author: Agatha Gilmore is a senior editor for Talent Management magazine.]