Statistics indicate that most entrepreneurs who create their own business fail to achieve long-term success, prompting many people to think twice about pursuing this career path. A new workbook from JIST Publishing offers insight into why entrepreneurs fail to achieve success and provides step-by-step strategies for developing a healthy and profitable business.
Indianapolis, IN (PRWEB) January 27, 2008 — Despite little business experience and even less money, aspiring entrepreneurs can still successfully start their own business, according to Linda Gilkerson and Theresia Paauwe, co-authors of the newly-released Self-Employment: From Dream to Reality, Third Edition workbook.
"Successful entrepreneurs come from all sorts of backgrounds and experiences. Age, gender, marital status, and education levels do not seem to be significant factors for success," says Gilkerson.
Nevertheless, many people think twice about making the leap to self-employment and ultimately abandon their aspirations for fear of failure. Considering some statistics, it's easy to understand why people hesitate to begin their own business. For example, one in three new businesses fail within six months and three of four start ups shut down within five years, state Gilkerson and Pauuwe.
Although the statistics appear discouraging, they don't necessarily tell the whole story. "Many of the 'failures' are more accurately called 'career changes,' as no money was lost and the closure of the company was voluntary. In fact, many owners of the closed business considered their business successful but decided to cease operation for many reasons. The hours were too long, the market changed, or the owners could make more money working for someone else," says Paauwe.
It can be difficult for aspiring entrepreneurs to forecast the success of their business six months in advance, let alone five years down the road. A well-crafted business plan, however, is a person's best chance at achieving long-term success with their business, says Gilkerson and Paauwe. Their workbook Self Employment: From Dream to Reality, Third Edition, teaches people how to develop a smart business plan. According to Gilkerson and Pauuwe, the following are a few ways a strong plan can play a significant role in a business's survival and success, including:
- A business plan can give you the confidence to start your business, or it can help you realize that your business idea is not a good one. Before making the final decision, think through the answers to many questions about the product or service, customers, pricing, marketing, and potential cash flow. Business plans provide a process for answering those questions in an organized and logical way.
- A business plan is a small business's best tool for raising money. Most financial institutions will insist on a business plan to evaluate the idea. This gives the loan officer information about the potential business and allows him or her to evaluate the business's creditworthiness.
- A business plan can be a marketing tool. A written plan creates a clearer picture of the business. This will help explain what services or products the business will provide, who the customers will be, and what the goals are for the business. Have employees read the business plan so they understand what should be accomplished.
Self Employment: From Dream to Reality is available from the publisher (www.jist.com or 1.800.648.JIST). For a free media copy or to speak with the authors, contact Natalie Ostrom.
JIST, America's Career Publisher, is a division of EMC/Paradigm Publishing and is the leading publisher of job search, career, occupational information, life skills and character education books, workbooks, assessments, videos and software.