Dear Coach:
I ran a business for two years, but I never "made it" and had to close. I have ideas for a new business, but what if I fail again? I'm not sure I could take it.
Martin Detroit, MI
Dear Martin:
Without knowing all the facts, I can't make specific suggestions regarding your situation. However there are some guidelines that may help. My guess is your failure may have been related to a lack of adequate planning. A large percentage of new businesses don't succeed because the owners fail to do the necessary groundwork. They rush to open their doors and expect the business to take off on its own. Not a good idea.
The first step is to write down your goals. Interestingly, statistics show that only 3% of new business owners actually take the time to write their goals out. Ten percent have unwritten goals and 87% have no goals at all. In other words, they're flying by the seat of their pants. But listen to this… 3% who did write their goals out earned more money than the other two groups combined!!!
The next step is to take your goals and develop a solid business plan. Think of this plan as your "roadmap" to success. Would you take a trip in your car without first laying out your route on a map? While it's possible to reach your destination by trial-and-error, you'll probably waste a lot of time and money or get sidetracked somewhere along the way. On the road to developing your business, this could be a costly mistake&emdash;one that could mean the difference between success and failure. Your plan should include a self-analysis (e.g., personal skills and experience, personal characteristics), a feasibility study, a market analysis, financial resources, start-up cost estimates, anticipated expenses, and needed action steps to name only a few areas.
There are a number of books on the subject. Your First Business Plan : A Simple Question and Answer Format Designed to Help You Write Your Own Plan (3rd Ed) by Joseph Covello and Brian Hazelgren is and excellent resource. There are also some good software programs available that can guide you through the process as well.
I also suggest you take an "honest" look at why your first business failed. In other words, don't repeat your mistakes&emdash;learn from them. By identifying all the things that went wrong in your first business, you can take steps to minimize your chances of failure the second time around. Again, be brutally honest with yourself.
Another resource I strongly suggest is the Small Business Administration (SBA). They offer some excellent classes on starting a business, developing a business plan, and obtaining financing&emdash;all incredibly inexpensive. Many branches of the SBA also provide reference libraries and computer and video centers. The Service Corps of Retired Executives (SCORE), which operates through the SBA, offers some excellent counseling by experienced business people who can help you examine your situation in more detail. The investment in time will be well worth the effort. Good luck! Tom
Tom Foley is a personal coach, seminar leader, and licensed clinical psychologist who has shared the concepts of "coaching" with hundreds of people. This background, coupled with his former career as a professional musician, has allowed him to utilize his creative spirit to help people achieve their goals and pursue their life dreams. He works with people from a variety of backgrounds, including artists, writers, people in transition, and entrepreneurs.
Coaching, which is conducted by telephone, is an extremely convenient process, and Tom's fee options make it affordable for most people. For information about personal coaching sessions, classes or workshops, call Tom at (425) 482-3022 or visit his website: http://www.lifequest.net
Questions for the "Dear Coach" column may be sent to him via email: indialogue@aol.com
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