Business owners

[tb001]

Quote:

Originally Posted by OldShooter A note of caution from your friendly neighborhood SCORE mentor here: Most small businesses fail. The published figures seem to be 50% failures within five years, but I think those numbers do not capture a lot of the really small businesses started by individuals. Nassim Taleb writes of what he calls "silent evidence." Regardless of what the actual failure rate is, it is very important to consider this concept. Basically, it is the successful businesses that we hear about. Hardly anybody goes on a forum to describe his/her failure. This is the evidence about small businesses that we don't see -- the silent evidence. Said another way, the enjoyable success stories we are reading here should not lead to a conclusion that starting a business and succeeding is easy. And, @tb001, do not think that starting a business is so easy that you can do it in a field or a market that you know nothing about. This adds hugely to the risk. If you want to do something new, find a job in that type of business and work for a year. Then decide. Sorry for the cold water. It's in my job description.

Oh, I appreciate the cold water! The likelihood of me actually doing something is very low—I was as much curious to hear what types of businesses people are running. Seems there are loads of things I would just never think about!

If I did anything it would probably be in real estate, since that’s what I’ve geown up around and seem to have a nose for. But I love hearing about all of these!

[Rianne]

I grew up in a family owned business. My parents had two successful steak houses and a fast food restaurant. Very hard work, long hours and my parents demanded we all (kids) work in the restaurants to some degree. They were in business for 35 years, but poor money management made them sell out eventually.

From a kids point of view, it was stressful and fun at the same time. We ate well, met lots of people. My parents were very sociable. They started small with a burger/milkshake type place in south Chicago. Then built up over the years then money issues got in the way in later years.

I would never own a small business. It aged my dad, but that's restaurant business. Other small businesses like real estate might be more profitable.

[socca]

Quote:

Originally Posted by tb001 I know we have a number of people here who have started their own successful businesses. I’ve worked for someone else my entire life and am looking for alternatives as we move into the next phase.

Head over to one of the major business brokerage websites and see what's for sale. I haven't visited one of those sites in many years, but enjoyed browsing the opportunities way back when. Some of the options stimulated my fancy, like owning a 120-acre hobby farm in a lovely part of the world. However, there is often a wide gap between dreams and reality.

[COcheesehead]

Quote:

Originally Posted by OldShooter A note of caution from your friendly neighborhood SCORE mentor here: Most small businesses fail. The published figures seem to be 50% failures within five years, but I think those numbers do not capture a lot of the really small businesses started by individuals. Nassim Taleb writes of what he calls "silent evidence." Regardless of what the actual failure rate is, it is very important to consider this concept. Basically, it is the successful businesses that we hear about. Hardly anybody goes on a forum to describe his/her failure. This is the evidence about small businesses that we don't see -- the silent evidence. Said another way, the enjoyable success stories we are reading here should not lead to a conclusion that starting a business and succeeding is easy. And, @tb001, do not think that starting a business is so easy that you can do it in a field or a market that you know nothing about. This adds hugely to the risk. If you want to do something new, find a job in that type of business and work for a year. Then decide. Sorry for the cold water. It's in my job description.

I agree to a point about respecting failure, but success is a possible outcome too. If you pursue something you fear a little, but excites you a lot, you are probably pursuing the right thing. Starting a business was my dream and it changed my life. No doubt about it. I knew the stats about business failures and that made me focus even more on being different in the marketplace.

[COcheesehead]

Quote:

Originally Posted by socca Head over to one of the major business brokerage websites and see what's for sale. I haven't visited one of those sites in many years, but enjoyed browsing the opportunities way back when. Some of the options stimulated my fancy, like owning a 120-acre hobby farm in a lovely part of the world. However, there is often a wide gap between dreams and reality.

Don’t buy a business you know nothing about.

[socca]

Quote:

Originally Posted by COcheesehead Don’t buy a business you know nothing about.

Don't forget seller-financed and seller-willing-to-train-buyer deals. However, obviously knowing something about the biz being bought increases the probability of success. OTOH, aren't MBA's taught that their education allows them to successfully manage any business? I'm skeptical of this claim, but I don't have a MBA.

[COcheesehead]

Quote:

Originally Posted by socca Don't forget seller-financed and seller-willing-to-train-buyer deals. However, obviously knowing something about the biz being bought increases the probability of success. OTOH, aren't MBA's taught that their education allows them to successfully manage any business? I'm skeptical of this claim, but I don't have a MBA.

I don’t know about an MBA, but I got max benefit out of my bachelors of business degree.
I should calculate the dollar value of my state school degree vs dollars earned. Has to be off the charts.

[Ronstar]

Quote:

Originally Posted by COcheesehead I don’t know about an MBA, but I got max benefit out of my bachelors of business degree.

+1. I went back to school and finished my bachelors in business shortly before becoming a business owner. The business education was extremely helpful in getting me up to speed on business financials, hr issues, marketing, etc. And since the company paid for my education, it was even more important for me to make good business decisions to prove that my education gave the company bang for its buck.