Entrepreneurs - Do You Want to Run Your Own Business? You Must Read This First!

Are you considering the life of an Internet business owner? Well before your eyes gloss over with dreams of endless free time and images of sitting on your couch with your laptop clicking away earning you thousands let me show you the reality of the situation.

A certain image has been promoted of the Internet business owner. It's often glorified as the great dream, leaving your old job, with the long hours and annoying boss in exchange for a flexible lifestyle that you are in control of.

Well let me tell you - it's all true!

Well sort of. It's not by any means easy to do and you lose many things you might have not realised you valued in your old secure job. Let me point out the things you lose that you might want to think about before quitting your job.

1. Say good bye to a reliable and predictable income.

No job is 100% secure and there is a good argument that being in control of your income via your own small business is more secure than a job (you're not at the risk of downsizing etc) however it doesn't feel like that, especially when you start out. Even the oldest most established business cannot be certain sales will keep coming. From week to week you go up and down and are never sure when or where your next sale will come from. You can have great months and bad months and the only constant is unpredictability. A steady pay cheque feels a lot more secure than the ups and downs of your own business.

2. Your business is your life.

When you leave work you leave work. Most small business owners live and breath their business so they don't ever really leave work. Now I've got it pretty good at the moment because I love what I do and I don't *have* to work much though I choose to work online a lot. That being said I am trapped to checking my email day in and day out, 24 hours a day, which is not ideal. Chances are when you start your business you won't be working 9-5 or even 8-6. Early on you will most likely carry the show and until you can justify hiring others your hours will be long and you won't have a weekend. However if you are smart, set realistic expectations and remember life is a balance, then running your own business can definitely be less work than a normal job, if you choose it to be.

3. You may never make real money until you sell your business.

An unfortunate situation in many small businesses is that the owner often doesn't make much more than an average salary, sometimes less. Now if you are evaluating starting a small business based purely on financial rewards then you might want to change your assessment criteria. Many small business owners don't make a big windfall until they sell their business and often by the time they are making the sale they will be using the money for retirement. Although it is also true that the only way to become really, really wealthy, besides inheritance and lotto, is by starting your own business.

The reality is that only a small percentage of businesses make their owner really wealthy, the rest stumble along earning an average wage. Of course many of those business owners earning an average wage love their lifestyle and only work as hard as they want to. Running your own business has the greatest potential to make you rich and may never make you rich, but here is the important part, your own business is very likely to make you a happier person if you keep your goals simple and aim for lifestyle over riches. Anyone can get rich but the contented people are rich without material wealth.

4. There is no superannuation, paid leave or sick leave.

You may not think about superannuation very much but it's nice to know that when you have a job your employer is planning for your future by contributing to your superannuation. As a business owner your employer is you and besides looking after your employee superannuation you are also in charge of your own retirement. This is an added worry that you don't have when you are working for another business.

Having time off is a concept not familiar to many business owners. Being paid when you have time off is like a dream for a business owner. There are some common myths about business owners working 7 days a week even when sick. If you do things right your business should still function without you when you need time off because of illness or even if you dare to take a holiday. However that being said most business owners find themselves as the most critical wheel in the business system and if you remove that wheel things fall apart. The important skill to learn is that the business owner should work on the business, not in it, but that's easier said than done and especially early on when funds are tight it's very like you will be working in the business. Don't expect a paid holiday.

5. Workmates

There are no work mates for the solopreneur. You can hire employees that may hopefully become friends but the dynamic is always you the boss and them the employees. If you have been used to working in a busy, lively, talkative office full of peers that share the same perspective as you, with Friday afternoon drinks, group functions and shared time complaining about the boss -- you can kiss all this goodbye.

Okay, that's not entirely true.

Things are definitely different from working in someone else's business but I've seen many small businesses that have great working environments. The difference is as the boss you have to create your own socialisation. You can do this by creating an amazing business culture where all employees are mates and the office is like a party that happens to get work done too. Of if you do not require employees then it's your job to make sure you don't turn into a lonely home based business bum. This means flexing your socialising muscles and organising events with other business people (if that's whom you like to associate with), making sure you stay actively involved in groups and clubs and that you leave the home office now and then to interact with real live people. Much like everything else with running your own business, you are in charge of your social life too.

A day in the life of an Internet Business Entrepreneur.

Now you are familiar with what you lose when starting your own business. Tomorrow I'll be posting an article about a typical day in my life as an Internet business entrepreneur so you can see what sort of lifestyle you can attain if you choose to start your own business. I'm not saying mine is an ideal lifestyle and there are things I'm working to change, but my example does provide you with a working model of the home based business owner.

By Yaro Starak
http://www.entrepreneurs-journey.com

Do you want to profit from your own successful home based Internet business?

Learn from Yaro Starak, a young entrepreneur from Australia. He works part time from home on several web based business that generate between $2,000 and $8,000 per month. Get your free articles and audio now - visit his Internet Business Blog.

Top 10 Business Plan Myths of Solo Entrepreneurs

Don't let these stop you from having a business plan for success!

A recent study of 29,000 business startups noted that 26,000 of them failed. Of those failures, 67% had no written business plan. Think that's a coincidence?

Here's the top 10 myths Solo Entrepreneurs often have about business plans-usually, the reasons why they don't have one. De-bunk the myths, and see how having a business plan for your solo business, can actually be easy and fun--and can jumpstart your success!

1. Myth: I don't need a business plan--it's just me!

Starting a business without a plan is like taking a trip in a foreign country without a map. You might have a lot of fun along the way, and meet a lot of friends, but you are likely to end up at a very different place than you originally set out for-and you might have to phone home for funds for your return ticket.

Solo Entrepreneur Reality: Successful Solo Entrepreneurs know that the exercise of creating a business plan, really helps them think through all the critical aspects of running a business, make better business decisions, and get to profitability sooner.

2. Myth: I have to buy business plan software before I can start.

Business plan software comes in many shapes and sizes, and prices. Many are more geared at small and growing businesses with employees.

Solo Entrepreneur Reality: Business plan software can be helpful-but it's not required. Software is more likely to help if you have a more traditional type business, like a restaurant or a typical consulting business.

3. Myth: I need to hire a consultant to write my business plan.

Consultants are an expensive way to have your business plan written.

Solo Entrepreneur Reality: Your business IS you-and you need to be intimately involved with the creation of your business plan. A better strategy, if you think you need professional help, is to hire a coach or mentor-someone who can guide you in what you need to do, not do it for you.

4. Myth: The business plan templates I've seen have all these complex-sounding sections to them-I guess I need all those?

The only time you need to follow a specific outline is if you are looking for funding.

Solo Entrepreneur Reality: Your business plan needs to answer ten basic questions-that's it! Don't make things more complicated than necessary.

5. Myth: My business plan needs to be perfect before I can start my business.

If you wait for everything to be perfectly detailed, you may never start.

Solo Entrepreneur Reality: If you have at least a first draft that answers those ten basic questions, you are ready to launch your business! Make your business plan a living, evolving document. In the startup stages, review and update your plan every 2-3 months. As you grow and stabilize, you can slow down the review cycle to every 6-12 months. All business plans should be reviewed and updated at least once a year.

6. Myth: I have to do everything I say I'm going to do in my business plan, or I'm a failure.

Many Solo Entrepreneurs never start because of this myth-which leaves them feeling that the success of their future business suddenly rides on each stroke of the pen or click of the keyboard!

Solo Entrepreneur Reality: Think of your business plan as a roadmap for a trip. Expect to take some detours for road construction. Be flexible enough to take some exciting, unplanned side trips. And don't be surprised if instead of visiting Mount Rushmore, you decide to go to Yellowstone, if that turns out to meet your vacation goals better!

7. Myth: A good business plan has a nice cover, is at least 40 pages long, must be typed and double-spaced...

Business plans intended for investors, such as a bank or venture capitalist, must meet certain requirements that such investors expect.

Solo Entrepreneur Reality: As a Solo Entrepreneur, your business plan need only satisfy YOU. It might be scribbled on a napkin, on stickie notes on your wall, or consist of a collage of pictures and captions. It might be all in one document or scattered among several mediums. As long as you know it in your head and heart without having to look at it, and and it is easily accessible to you when you have doubts, that's all that is necessary.

8. Myth: I don't need a loan-so I don't need a business plan.

YOU are the investor in your business-and would you invest in the stock of some company without seeing a prospectus?

Solo Entrepreneur Reality: Seeing your plan in black and white (or color, if you prefer!), can give a whole new view on the financial viability of your business. If "doing the numbers" seems overwhelming, remember you don't need fancy spreadsheets. Just lay out a budget that shows where all the money is coming from (and going), and have an accountant review it for additional perspective.

9. Myth: My business plan is in my head-that's good enough.

I don't know about you, but I sometimes can't remember what I planned yesterday to do tomorrow, if I don't write it down!

Solo Entrepreneur Reality: There is a real power in writing down your plans. Some schools of thought advocate that the act of writing a plan down triggers our subconscious to start working on how to manifest that plan. And, of course, it's a lot easier to remember when you have it in front of you. And a lot easier to share and get feedback from your non-mind reading supporters.

10. Myth: Friends and family are the best sources of feedback and advice on my business plan.

If your brother is an accountant and your best friend is a market research expert, then this might be true.

Solo Entrepreneur Reality: As well meaning as our friends and family can often be, they just aren't the best way to get honest, objective guidance. Instead, seek out folks that have specific knowledge that will help you, are willing to be candid with you, and that have a genuine interest in helping you succeed. A business coach is one resource to consider!

Copyright 2004, Terri Zwierzynski - Accel Innovation, Inc.

Terri Zwierzynski is a self-employed business strategist and marketing consultant to solo entrepreneurs, and a grassroots promoter of the solo entrepreneur lifestyle. She runs Solo-E.com, the resource website for the self-employed which attracts thousands of solo home business owners monthly from over 100 countries on six continents (and was recently named a finalist for "Website of the Year" in the 4th Annual Stevie? Awards for Women in Business). Terri is also the co-author of 136 Ways To Market Your Small or Solo Business.

Find more articles about Business Planning at Solo-E.com, plus get a copy of our new ebook, "25 Surefire Ways to Capture More Clients, Get More Done in Less Time, and Make More Money -- in 90 Days or Less."