The Real First Step to Starting a Business

I listen to dreams. I listen to men and women tell me how they have the next, best, greatest, latest, newest idea, product or service that will change the dynamics of the world. This “thing” will set us all free, revolutionize our lives, and relieve them from their financial burdens. And after I spend 30 minutes listening to this potential entrepreneur go on about setting the world on fire, I get to pop the bubble of the dream and help him or her see the reality of the situation.

This does not always make me friends, but it does help entrepreneurs become successful. Take Kevin for example (of course that is not his real name). Kevin is a 20 year Army veteran who has been helping his father out with the side lawn care business for over 10 years. His father is retiring in a few years and he wants to make this a legitimate business venture. He has a younger partner who is educated in landscaping and eager to go. In Kevin’s eyes their only hold up is capital to get the business going. After talking with Kevin, I found out that there is a lot more then just one hold up for this duo. Kevin’s credit is shot, he has no capital and neither does his potential partner and there are no relatives that can assist him with a loan.

Do not get me wrong, Kevin can still go into business and become a very successful landscaper. He just needs to understand the truth of the situation in order to get there. I see way too many men and women who have never been told the truth about a business idea. They have been lead to believe that there is free money or are angel investors just waiting to help them out. They have been sold on the promise that if they hang out the shingle the customers will come. Why does this happen? From my experience it is because the counselor either wants you out of their office or they don’t want to be the bearer of bad news. I prefer to think it is the latter of the two.

However, I consider it an honor to bring in reality to the entrepreneur so he or she has a chance to make it. It Here are a few things you can do to ensure you are living in the reality of your dream and have a better chance for success.

Get a copy of your credit report and review it. You cannot run away from the issues of your past. You must face and correct them in order to move on.

Make a habit of checking your bank statements and looking at your personal household budget. If you cannot budget $5,000 you will not be able to budget $50,000. See where you can save and where you need to spend. This will give you a realistic picture of what you need to make in order to take care of your family and operate a business successfully.

There is no getting around it. Research, Research, Research. There are processes and steps you cannot get by and expect to do well. Who wants your service REALLY? Why would they buy from you? How will the customer know you exist? These are just a few things you must know and you have to put in the time to research your market.

Seek out professional assistance. There are plenty of free services available to you and wonderful counselors that can review or help you create your business plan or idea. You can visit the Veterans Business Resource Center (www.vetbiz.com) SCORE (www.score.com) SBA (www.sba.com) and find people and classes that can help.

Most importantly, identify at least one pessimist in your life and let that person read your business plan or listen to your idea. I guarantee he or she will point out every single thing that is wrong down to the smallest detail. Then you can adjust accordingly to address any pitfalls now instead of later.

It would be a disservice to my clients to let them continue to travel down the wrong path just so I don’t have to feel bad that day. If you don’t have someone in your life to tell you the truth, you will not be successful in your venture. Have a powerful day!