Gold Street: Are You Ready to Start a Business?

The secret is timing, hard work and smart partners. “Using that formula, I've either founded or funded over 80 companies, and none have gone bankrupt. Most have done very well.” – Terry Matthew

1. ARE YOU BETTER OFF WITH A JOB?

· Over the lifetime of a business: 39% are profitable, 30% break even, and 30% lose money, 1% undetermined --Wells Fargo/NFIB study, using U.S. Census Bureau data

· Job hunting resources: See Richard Bolles http://www.jobhuntersbible.com/

2. DO YOU HAVE MASTERY OF THE SKILLS NEEDED?

· 10,000 Hours (about 5 years) http://www.psychologytoday.com/em/85976

3. HAVE YOU DONE YOUR RESEARCH AND DO YOU HAVE A PLAN?

· Business plan, marketing strategy, cash flow projections, etc.

· Have you accounted for all of the expenses of self-employment?: taxes, health insurance, short and long-term disability, double retirement contributions, etc.

4. WILL YOU BE IN THE RIGHT LOCATION?

· Best city, very best retail location, best web traffic

5. QUESTION: How much does it cost to fail in business?

· ANSWER: The sum total of your life savings and/or inheritance.

· Figure out how much it’s going to cost to actually be financially successful in a business, not just how much it costs to set up the business.

6. WHAT DOES A FRANCHISE COST?

· Franchise information http://www.entrepreneur.com/franchises/rankings/lowcost-115390/2012,-1.html

· Best and worst franchises for 2012 http://www.inc.com/articles/201101/the-best-and-worst-franchises-to-own.html

7. HOW BIG DO YOU NEED TO GROW TO BECOME PROFITABLE?

· Number of units, locations, employees

8. ARE YOU WILLING TO LOOK AND PLAY THE PART OF A SUCCESSFUL BUSINESS OWNER?

· Industry standards of dress: see Work Wear at the Wall Street Journal http://blogs.wsj.com/speakeasy/category/style/