Starting your own business

Can we say that America is a nation of small business? yes. About million of them. Many of them are extremely prosperous, and so are their owners. More millionaires come out of a small business than big corporation. Of course, not every entrepreneur does so well. About 80% of all businesses fail within two years, usually because their owners do not start out with enough capital or with a sound plan.

When starting your own business, the first two or three years are the critical period . To survive them, you will need to anticipate the problems that accompany each stage of the business. You can avoid or conquer difficulty with sound planing, ample capital, solid management skills and, of course, a well-conceived idea.

When you get that idea, it may seem so stunning to you, so can't miss, that your first impulse will be to quit your job, remortgage the house and kiss your spouse and kids good-bye kiss while you devote yourself to your brainstorm. But do not do anything of that kind. Instead, you should evaluate your drive, dedication and experience in estimating whether you can turn a pipe dream into a money-maker. Experience is the key.

Solid planning is essential. you will need to draft a business plan itemizing the costs of developing your product or services, and projecting your company's share of market and sales over the next three to five years. this road map should be about 60 to 80 pages long and quarterly and include weekly or monthly projections for the first two years and quarterly figures after that. Do the figuring yourself to become familiar with productions, distribution, and marketing.

You also can get help from a business incubator. That is a support center which provides pledgling entrepreneurs with inexpensive space and services, such as copy equipment and secretarial help. These centers are often housed in old, renovated buildings and charge rents that are only a fraction of what businesses would have to pay elsewhere. Because overhead is low, the business owners can devote more money to making their ventures succeed and grow. And most incubators businesses do succeed; some get so big that they eventually have to move out.

You may be considering starting a new business all by yourself, but it pays to remember that teams have better odds for success than individuals do. The right combination brings more management skills and more money than you alone can.

Of course, money is supremely important when you start your own business. Under capitalization pits you against the clock in a losing race. To figure out how much capital you are going to need , hire an accountant-preferably one with experience in your industry. He can help show you how much money you would need.

If your small business then can survive two to three years of growing pains, the odds for continuing success will be in your favor.

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I-O Psychology
Industrial-Organizational Psychology, application of various psychological techniques to the workplace and other organizations. Psychologists in this field advise businesses and organizations on a variety of subjects:

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