Earlier this year GLBM recognized local business owners with the 2011 Greater Lansing Entrepreneurial Awards. Our firm would like to recognize all local business owners, especially considering the economic challenges we have faced over the last several years.

The objective with this article is to write a few words of encouragement to those individuals with entrepreneurial aspirations, as headlines for years seem to warn about the economy and against starting your own business. Our feeling is that there may not be a better time to start a business than today! If you think this seems counter intuitive, let us review a few of the start-up business basics and the necessary personal attributes to evaluate how likely success might be for you in a new business venture.

Entrepreneurs and privately owned companies have always been (and always will be) responsible for creating most of the jobs not only in Lansing, but also in Michigan and throughout the United States. The entrepreneur should expect to work long hours in good times and bad. One must have a passion for what the business does. That passion will sustain you through inevitable adversity.

“Success is not the key to happiness; happiness is the key to success.” - Albert Schweitzer

“If you love what you do, you will be successful.” - Herman Cain, entrepreneur and columnist

“Opportunity is missed by most people because it is dressed in overalls and looks like work.”- Thomas Edison

Having control is one of the most common reasons people go into business for themselves, having control of work schedule, office décor, office location, policies, goals, technology choices, purchases and all decisions. Business ownership comes in a close second to home ownership for tax management and tax shelter purposes. Business owners control pension contributions, salary to children, vacation homes, expense accounts, company vehicles, business trips tied to vacations, fixed asset purchases, home office deductions and frequently even the timing of income. Compensation is another highly rated reason for self-ownership.

The probability of becoming a millionaire is greater for a business owner than it is for a professional.  Owners may enjoy what they do so much they feel willing to do it for free. Employees frequently derive no pride and often feel low job satisfaction. A sense of prestige may go with business ownership. These individuals are typically valued in the community for creating jobs, for leadership skills and for being active in the community.

The only thing a business must have to be successful is its customers. The biggest reason for failure is lack of preparation and start-up resources. Planning and groundwork are vital.

“The victory of success is half won when one gains the habit of setting goals and achieving them.” - American author Og Mandino

A 2001 Thorne Riddle study suggests that owners of successful start-ups spent at least six months preparing for the business and relying upon attorneys, CPAs and studying business theory themselves.  Once you’ve determined a market need there are many aspects requiring consideration: start-up capital, location studies, market demographics, corporate form advantages, market analysis, sales projections, cost analysis including break-even analysis and profit goals, method of start-up (i.e., buy an existing business, buy a franchise, launch a start-up, ease into a business on a part-time basis or hiring first into a competitor to learn the basics).

Do not forgo self-analysis as part of the planning process. What are your strengths and weaknesses? Where do your abilities and talents lie? What comes easily or naturally? What have your experiences been? Entrepreneurs often work 15-hour days, seven days a week. When the owner wants a vacation or to retire, the company frequently shuts down because the owner is so vital. You must be a risk taker but hedge, do not plunge (be deliberate not reckless). You must be creative and flexible to respond to inevitable adversity and multiple setbacks. Desirable traits include being a self-starter and leader. Deal positively with others, not condescendingly. You must be able to make correct decisions quickly and reliably under pressure. A personality exam such as Myers-Briggs or the Enneagram typology might be warranted. This type of analysis is neither intended for, nor capable of, predicting whether or not you could be a successful business owner. It is an effective tool to help you understand your strengths and weaknesses.

The best time to start a business is during a recession. During a recession costs will be down. Labor will be more available and less expensive. As a start-up you will not have the legacy costs that the existing competition will have. Rents will be lower and lease incentives available due to higher vacancy rates. Suppliers and manufacturers will be more willing to negotiate to keep their inventories moving.

We realize the concepts we’ve reviewed are high level with sweeping brushstrokes. Our goal is to encourage those of you who have the desire to be an entrepreneur. We want to contradict the frequent rhetoric and common headlines that seem to emphasize negativity. Just like the award winners celebrated by GLBM earlier this year, you too can be the next Entrepreneurial Award winner by providing jobs and well-being to our community.

		Peter J. Fortin’s professional experience includes managerial accounting, financial statement compilation and more. In addition, he has participated in and led compliance audit reviews for the State of Michigan, and has provided forensic accounting services to various private and public sector clients. Fortin has served clients in a variety of industries, including construction and real estate development, commercial and professional services, retail, and the restaurant and food service industry.