Business Quiz

Do you have what it takes to be an entrepreneur? Take this quiz.

Will Limkemann

Frustrated entrepreneur

On February 25 I posted an open letter to president Obama explaining the importance of micro-businesses to the economy and how the government and banks virtually neglect this important business sector.

Yesterday I received a passionate e-mail from a reader and small business owner in Alaska thanking me for standing up for small businesses. This frustrated and industrius woman has kindly given me permission to quote from her letter.

“Presently I own and have managed my computer technology shop for nine years, am a single mother who home schools, have built my home with hand tools, been told No upon my request for adding utilities to my home by banks who would let me build a new home as the solution.  I’ve started and run successfully two small businesses and yet now barely hang on due to high interest credit cards, a double mortgage, and high interest lending.

Had I started with, or been granted capital for, low interest loans for my business I would be very successful right now.  I’ve already paid off my first property though $24,000 still remains in debt and the banks had me take on a second mortgage.  I know with adequate funding, I can help many more than I do.  I also have had a 22% return on my service business although others went to products earlier than I.  Now I want to provide products fast.  I can find and have vendor relationships that are better than the nearest competition more than an hour of road travel away!

I’m not writing to sing the blues because I’ve been the one to carry my community, local businesses, and volunteered at the local schools and for my church.  I am writing to let you know within a few weeks I am considering surrendering to the banks the belongings and businesses I’ve built in order to find a shelter and collect welfare and drop the bills.

My preference is to acquire a grant quickly for computers and new parts and peripheral equipment that people in the area buy from me before I can keep it on a shelf.  If I could acquire $10,000 it would equip the entire store and all of it would be sold within 1-3 months to provide a return of more than $1,800 based on conservative estimates.

I am writing to thank you for your representation, what you wrote in February on my and my small son’s behalf.  He’ll have to pay back our national debt.  His lifetime will suffer for it, and I appreciate your attempt to help what I believe America should be built on- the multitudes of small businesses who’ve crossed unnavigable roads, repaired their own vehicle, built their homes from the land up using hand tools, lived in homes without utilities, designed off-grid systems that add to the quality of life, and who’ve started businesses to contribute to their neighbor’s quality of life.

I am also writing to ask you if you know of any immediate grants that are real, for a single Mom with two professional technology and planning businesses.  It really is keep working or collect from my system contributions over the years, and it’s a decision I have to make within a short time.  Will you offer your insight for immediate and real funding assistance?

It appears that I have been doing everything with my life that the President requests of us regarding women in business, technology innovation, single mothers from the only land she could buy to two businesses, and I have no return for it.  All I have- the banks own.  I don’t mind working for them, but when I cannot acquire a few thousand to begin to supply equipment  when the value of repair exceeds new- what are the President’s words for?  Has he actually made any of the billions they’re throwing around available for small businesses who are in touch with the land, real value from resources, and have the knowledge, foresight, and innovation to achieve growth?

Will you tell me if we are still America or if someone else owns us now?” 

There you have it – the real-world frustrations of a single-mom-entrepreneur who is about at the end of her rope.

Do you have a story like this? I’d love to hear about it.

What business should you be in?

With thousands of people losing their jobs each month and many other retired folks trying to make ends meet, a whole lot of people are thinking about and actually starting their own small businesses. Some will be lifestyle businesses geared to bring in just the income the owner needs, while others will be launched with the intent to hire people and grow.

In talking with many folks looking to start a business, the first question I ask is “what kind of business”. The answer, which used to surprise me, often is “I don’t know. I have lots of interests”, or “I may try this and if it doesn’t work I’ll try that.”.

Before risking time and money on a business, a budding entrepreneur needs a clear focus and vision for an unwavering business concept. How do you determine what kind of business you want to start? Here are a few guidelines:

1. If you have a really strong passion, consider how to turn the passion into providing goods or services that someone will pay money to get. If you are passionate about food, opening a restaurant may be out of the question for you, but you could consider catering or creating specialty foods to sell to restaurants, farmers markets, over the internet, or to retailers, or other options. Start making a list of the possibilities.

2. Determine what really excites you. Don’t start a business unless you really like what you will be doing.

3. Build on your education and past experience. While opening a business may be a great opportunity for you to try something new, you can minimize the risk by doing what you know how to do best. One word of caution: honor any non-compete agreements you may have from prior employers.

4. Consider whether your hobbies or avocations can be turned into money making propositions.

5. If you have been laid off, is there a possibility you can provide services to your prior employer as an independent contractor?

6. Still undecided? Visit http://www.ahbbo.com/ideas.html for a list of 400 businesses you can start from home to tickle your imagination.

Once you have determined your direction, stick to it with dogged determination. Don’t be sidetracked by other great ideas.