Realizing the dream: steps to starting you own small business.

• Author: Veltkamp, Ron

Many people, at one time or another, have had urges to quit their day jobs and start their own small businesses. It's kind of an all-American dream--the challenge of creating something and watching it grow into a successful venture. Maybe it's our American independent spirit that spurs us to take that big step and "just do it" like the Nike commercials tell us.

Unfortunately, many start their ventures without first considering the potential risks of owning a small business. The risks are a reality--in 2000 there were more business terminations than business startups in Alaska, according to the U.S. Small Business Administration Office of Advocacy. So, in order to keep the dream from becoming a nightmare, it is definitely in the best interests of budding entrepreneurs to be smart and to be prepared in their business startup processes. This article outlines some important considerations and steps to starting your own small business.

PERSONAL CONSIDERATIONS

Some people just have the right personalities to be business owners. They like people; they are energetic; they are good organizers and leaders; they are good decision-makers. While no guarantee of success, personality does make a difference.

How good are you at taking risks? Some folks are more tolerant of risks than others. Since risks are inherent in small business, it's better not to be worried to death all the time about what the future holds. Of course, risk tolerance should not take the place of good planning.

What management and technical skills do you bring to the business? If you have good solid technical experience in the field in which you will be conducting business, your chances of success are much greater. You have to know your business. You can be sure that your competitors do! At least as important, if not more so, is management skill and experience. A balance of technical and management skills and experience will serve you well in making your business succeed.

Does your spouse support the idea? Will your family be dependent upon the business to meet its financial needs? It's a good idea to involve the family right from the start, gain their support, and work together as a team.

DEVELOPING THE BUSINESS IDEA. Every successful business was built from a business idea that worked. Before you invest a lot of time, energy and money into a venture, ask yourself these questions: Does this idea make sense? Is it practical? Will it fill a need or niche? Who will buy my product or...