Business Is No Guarantee of Riches

Q: I'm thinking about starting a business since that seems to be how most rich people get rich. I don't have any business experience or much money, but I'm a fast learner and have lots of energy. Any free advice? Peter J.

A: I'm full of free advice, Pete, and here's your dose of complimentary wisdom: don't quit your day job. No offense my energetic friend, but to consider starting a business with no experience and no money is a little like playing football with no playbook or pads. Your various body parts will be pounded into the ground by better-equipped players and you will lose the game.

Now let's address your other point concerning rich people who got that way in business. Anyone who thinks that going into business is the key to riches needs to hear the story of the boy who asked the rich old man how he made his money.

The old millionaire fingered his Rolex watch and said, "Well, son, it was 1932: the depth of the Great Depression. I was down to my last nickel. I invested that nickel in an apple. I spent the entire day polishing the apple and, at the end of the day, I sold it for ten cents.

"The next morning, I invested those ten cents in two apples. I spent the entire day polishing them and sold them later for 20 cents. I continued this system for several years and soon I had a thriving apple business."

"And that's how you got rich?" the boy asked. "In your own apple business?"

"Oh, heavens, no!" the old man replied. "I lost my shirt in the apple business, but a few years later my wife's father died and left us ten million dollars..."

Moral of the story, Pete: you'd be better off finding a nice girl with a sickly, rich daddy than to count on starting a business that will make you rich. Of course finding a nice girl with a sickly, rich daddy is easier said than done (trust me on this one), but one can always hope.

That's certainly not to say that you can't get make a great deal of money in your own business or even get so filthy rich that wide-eyed youngsters beg you to tell them stories of how you built your fortunes. But most people who start a business do not get rich. To the contrary, most make so little money that they decide that going into business was not such a great idea after all and then run screaming back to the security of the job they once could not wait to leave.

While it is true that more millionaires got that way from their own business ventures than through any other means, to summarily assume that starting your own business puts you on the road to riches is foolhardy. Many entrepreneurs build solid businesses that provide a very comfortable living and many others do indeed get rich. Others simply find out that they have traded one job for another and still others discover that business really wasn't for them.

What should you really consider before starting a business? Asking yourself the following questions will help you make a wise decision.

Are you really cut out to be an entrepreneur?

This is the first question you must ask yourself because the grass on the other side of the entrepreneurial fence is not always greener (despite all the entremanure).

Ask yourself:

Do you have a burning desire to own your own business? Do you have the initiative to get out of bed in the morning and be your own boss? Do you have the energy to work around the clock? Can you persevere in the face of adversity? Can you turn problems into opportunities? Can you work alone without support? Can you get used to the idea of life without a steady paycheck? Are you passionate about your product or service? Are you prepared to run the company, do the books, sweep the floors, empty the garbage, and do whatever it takes to make the business a success? If not, you're not cut out to be an entrepreneur. Learn to love your cubicle.

Do you really have a "great idea?"

The key phrase here is "great idea." All businesses - those that make their owners millionaires and those that make their owners paupers - start with an idea. The problems begin when that great idea turns to mush. Share your idea with others and ask for honest feedback. You might find that great idea is not so great, after all.

Is the timing right?

Is this a good time for you to start a business? Maybe you've just retired or left a job and have the time to devote to a business. Or maybe a rich uncle left you a bundle and you are now financially sound enough to venture out on your own. If the timing is not right, don't start a business.

How's your personal life?

Money and timing aside, your personal situation should be the deciding factor on whether or not you start your own business. Is your health good? Is your family supportive? Are you willing to sacrifice current lifestyle for long term success?

How well do you handle failure?

Since the vast majority of businesses fail within the first 5 years this is the most important question you must ask yourself. No venture is foolproof. Even with a rich relative (alive or dead) no business success is guaranteed. If the business does go belly up, can you still land on your feet? If not, RUN!

So Pete, there's your free advice. Good luck finding a rich father-in-law.

Small Business Q&A is written by veteran entrepreneur and syndicated columnist, Tim Knox. Tim's latest books include "Small Business Success Secrets" and "The 30 Day Blueprint For Success!" Related Links: http://www.smallbusinessqa.com http://www.dropshipwholesale.net

---

Learn how to Compress Time

In the popular 1980's movie "Dune," man learned that by "folding space" the distance between two points shortened and he could cover those distances faster. Around 1995, we found a substance that could... Read More

Playing Hookey Can Help! A Surprising Secret To Small Business Success!

Would you like to increase your chances of business success by 350%? The good news is that you can! Before you start working harder or learning the latest business theories so you can... Read More

Competing With The Big Dogs

You run a small consultancy. You're well qualified, experienced and dedicated. Yet you can't get a meeting with the corporate decision-maker.Your proposal was a work of art. You provided exactly what the client... Read More

Work vs Play: Which is the Better Way to Make Big Money?

If you want to make big money, you have to play not to work."What do you mean by that?" You ask.I attended a workshop last weekend and the speaker said if you are... Read More

Entrepreneurial Ongoing Education Advice

I would like to give some advice to all the up and coming entrepreneurs; if you really want to be a superstar not only do you have to work harder and smarter than... Read More

Isnt it Time You Started to Fly?

I am going to begin this article by sharing a shocking fact...Did you know that if you opened the door on every single budgie cage around the world (and we are talking a... Read More

5?4?3? 2...1?

A streak dating back more than three decades came to an end at midnight on New Year's Eve. For the first time since 1972, as America rang in 2005, "America's Oldest Living Teenager"... Read More

Something From Nothing, With Something To Share

Betrayal, it can hit you like a load of bricks falling from the sky, leaving you with a pit in your stomach that no pill can cure.Starting your own business is hard enough,... Read More

Street Smarts Vs Book Smarts, What Does It Takes To Be An Entrepreneur

The latest series in "The Apprentice" features 2 distinct group of candidates. One group, who are only high school graduates are termed as "Street Smarts" by Donald Trump whereas, the other group are... Read More

The Business and Life You Want to Build

In the early days of my first consulting business, I knew I needed some sort of plan to give me the greatest chance at success. I took many a wrong step, yet in... Read More

Adding a Service After You Buy a Business

When you buy a business, you should have a plan. Why have you chosen that particular business? Why that particular time to buy a business? What can you bring to the business? Some... Read More

Part-Time/In-Home Business - Low Expense and Low Risk

As a first time entrepreneur, there are a variety of franchises, dealerships, distributorships, and licensing opportunities available for purchase. Many of these you can start by working part-time from your home. In doing... Read More

The New Paradigm for Entrepreneurial Success

Entrepreneurship is a great magnet to deliver new ideas, unique approaches and innovative technologies. When conducted in a proper way, turning people into entrepreneurs improves a country's economic situation and aids sustainable progress.... Read More

CHINESE TAKE-OUT: Oriental Business Principles Demystified For Online Enterprises

"The expectations of life depend upon diligence; the mechanic that would perfect his work must first sharpen his tools." - ConfuciusChinese people are well-renowned for their industriousness and extraordinary minds for business. Cases... Read More

The Heroic Entrepreneur: Profiting from Your Brilliance

If you look up the definition of hero in Webster's, you'll find a definition something like, 'A person noted for feats of courage or nobility of purpose, especially one who has risked or... Read More

Hurricane Katrina, Death, and a Different Type of Entrepreneurship

I've seen terrible images today on the television and internet-bodies of the elderly and infants floating in attics, buildings collapsing, seals washing up in the middle of highways. All I can say is... Read More

How Entrepreneurs Succeed - The 5 Qualities Needed For Business Success

What is it that sets a successful businessperson apart from an average businessperson? Is it down to pure and simple luck, or is it all about having an amazing idea and a successful... Read More

Do You Have What It Takes To Be An Entrepreneur?

Q: I am interested in starting my own business. I have a business degree and lots of experience in my chosen field, but I don't know if I have the necessary skills to... Read More

Great Tips Of Choosing An Office

You have decided to strike it out on your own and set up a business consultancy. Chances are you want to look at getting your own office premises. Besides ensuring that your rental... Read More

Good Questions, good Answers; Bad Questions, Bad Replies

I'm convinced that asking the right questions is one of the most important skills you need to become a successful business person. Questions have the power to direct you or to distort you.... Read More

Entrepreneurship: Insight and Closer Look At The Entrepreneur

Life as an entrepreneur is the American Dream. To be able to be your own boss, own your own business, never report to anyone else, work from home, make unlimited earnings and income... Read More

Have You Been Thinking About Owning Your Own Business? Or Becoming An Entrepreneur? Part 1

Almost every day, I talk with people who want to start their own home-based businesses. I receive an interesting reaction when I ask people, "What are you looking for in a home-based business?"... Read More

Creativity & Entrepreneurship: The Creative Evolution of an Intellectual Property?

In each of us, there is a creative spark - a unique purpose and destiny for which we are born. Most of us have forgotten what that special gift is, or we are... Read More

Success Secret - How To Find Million Dollar Opportunities

They're really are powerful million dollar opportunites everywhere.Ok, let me explain.I jumped on a flight to Miami late yesterday for some business stuff and I do what I always do:Grab as many new... Read More

Work On, Not In Your Business

Are you busy? Everyone's busy! Ask anyone they'll tell you how busy they are. But how many people are accomplishing real results?In your small business, it's easy to get buried in the myriad... Read More

Securing Second and Third-round Venture Capital Financing

Widget sales are booming ? the competition is scrambling, demand is up, and the books are finally treading water. Your core management team has big ideas for the future of Widget Inc. Opportunity... Read More

Dream It, Create It, Become It! Design a Dream Board

Have you ever heard of "Dream Boards" or "Treasure Maps"? A Dream Board is a visual picture of the dreams you have for your life. Some of my clients also use this concept... Read More

Questions For The Entrepreneur To Be

Entrepreneurial e-gnorancePart 1: Questions for the entrepreneur to beIf you are an entrepreneur starting out, or have been around the block for some time but are yet to hit on the jackpot, you... Read More

The Reluctant Entrepreneur

It seems odd to think of a person opening a shop, knowing that they're not at all interested in selling or in face-to-face interaction with customers. But that's exactly what many Internet business... Read More