How to Own Your Own Business

Owning your own business is part of the American dream.

Many people dream of owning their own businesses and being their own bosses. The dream is wonderful, but the reality can be more challenging than people think. When you own your own business, at the end of the day, if things go wrong, there is only one person to blame: yourself. But with an entrepreneur spirit, some good planning and a bit of luck, you could own your own business. You may not get rich, but at least you won't have to punch a clock.

Instructions

1. Start off as a part-time sole trader. Identify your strengths and build your business plan from there. If, for example, you are a good cook you can start a weekend catering business and see how it goes. Test the market before you give up your day job. Keep copious records so that you can present the facts and figure to the bank when the time comes to apply for a loan.

2. Develop your credibility and a establish a good credit rating. If you want to get a start-up loan, you have to convince the bank that you can repay the loan, plus interest. Design a business plan that demonstrates that you have done your market research and that the business you are proposing is viable.

3. Buy a business with your savings. If you aren't ready to retire, but don't want to keep working for the man, invest your savings in a small business you can afford. Study the balance sheets and the markets before you sign on the dotted line.

4. Inherit a business. Family businesses and farms are often passed down from generation to generation, so if you have parents who own a business, you may inherit it after their passing.

Tips & Warnings

• Talk to business owners about how they financed their set up and what it is like to run their own operation.

References

• Australian Government: How to Start Your Own Business
• Kiplinger: Six Steps to Starting Your Own Business