Build Your Own Business

The high road to becoming a self-made millionaire in America is starting and building your own business, but this is not as easy as it sounds because most businesses started by inexperienced people fail. Probably the primary reason why people do n't start businesses is because they're afraid that they're going to lose their money, and for good reason. 99% of businesses started by people lacking business experience fail within the first two or three years.

Why Businesses Fail
And why is that? It's because many don't know how and haven't the slightest idea how to make a business successful. They may have an idea for a product or service, but they don't know all the things that they need to know to run a successful business, such as marketing, having a mentor, or a business plan, which is okay because I failed miserably the first time I started my own business, but failure is an event and not the person.

Why Businesses Succeed
However, surprisingly enough, 80% of businesses started by experienced business people succeed. Now why should this be so? The reason is because experienced business people know what to do. They know how to purchase their products and their services. They know how to negotiate with their suppliers. They know how to raise money. They know how to negotiate leases. They know how to sell and to market. They know how to manage their finances. In other words, experience is the key. In order to start your own business and succeed, you have to learn how.

Control Your Costs
The second reason that businesses fail, 46 percent, is because of poor cost control. They may be selling enough on the front end, but they're losing so much on the back end that they go broke anyway. Sales and marketing, financing and cost control, both require experience. And if you're serious about becoming financially independent, you have to learn how to do both of these.

Put Luck On Your Side
You must learn the skills you need to be successful. Business success is not a matter of luck. Business success is a matter of application. It's a matter of ability. It's a matter of experience, skill and intelligence, and wonderfully enough, you can learn what you need to know to be successful.

And you can start by learning through on-the-job training, which is called OJT. Most successful business people become successful because they get all their training by working for someone else.

Action Exercises
Here are two things you can do immediately to make sure that your business succeeds greatly:

First, take the time to get the knowledge and experience you need in business by working for someone else where you can learn a lot in a short period of time. Go to work in an area in which you are interested and learn everything you possibly can.

Second, read and study in business, especially entrepreneurial business, all the time. Read one or two business books per week and read every business magazine that is published on your subject. Never stop learning and growing.

I Will End On This Note
After my first few years in business, I found myself unable to pay my bills and was very close to filing bankruptcy. For me this was my worst fear being realized. Although I had no money and my future seemed very bleak, I pressed forward through my fears and even a few tears. In spite of all the challenges and disappointments along the way - it has been worth it. I have made many mistake and learned many valuable lessons on this journey which I will gladly share with others who have a entrepreneurial spirit. This is the real challenge of entrepreneurship.

Sharif J. Small, '05

S.J.S. Financial Firm