Forums: Discussions for entrepreneurs and small business.

Many people who have recently lost their job will be starting their own business. There are a number of adjustments that people must make when moving from being an employee to a business owner. What do you think are the main changes people must make in this scenario?

I think many people learn to "kill time" at work, to stretch things out to fit the schedule they are given (8-hour days), rather than learning to be efficient and work when it needs to be done.

Managing time is a BIG shift for many people. With a job, their time is managed. With a business, the responsibility is theirs, and it can be hard to prioritize - especiallyw ith distractions at home (if that is where they start).

-------------------------

Ed
Business Optimization - www.businessoptimization.biz

I like that, Ed... DK²

Very clever, and an excellent point!

-------------------------

Stacy Karacostas
Practical Marketing Expert
Business Lifestyle Architect
2nd Place Winner in StartUp Nation`s 2008 100 Best Home Based Businesses Competition
http://theunchainedentrepreneur.com/

P.S. Tired of giving up your life to grow your business? Sick of suffering from Entrepreneurial Overwhelm & Marketing Madness? Discover insider secrets for making more and working less by downloading your copy of my F*R*E*E “Success without Shackles Starter Kit” at http://TheUnchainedEntrepreneur.com/

Thanks, but the knowledge has come at the pain of seeing many good people who thought they found success swap that multi-million dollar success for bankruptcy court.  Their only crime - not knowing what they don`t know. 

I walked into one just the other day - desperate to break-even at 2 million - as most, thinking if they could sell more they`d find profit.  Sunk $750K chasing that belief.  All the while, a cursory look at financials found $220,000 in profits that small countrols could have been capturing all along.  It is sad.  Ah but to have all the money that hard work put in their hands that slipped through their fingers.  The owner`s plan was to reduce phone charges.

-------------------------

Ed
Business Optimization - www.businessoptimization.biz

Ed, I agree completely.

In my first business, I learned a lot. In working with other businesses, I have learned even more. The most important thing I have learned is exactly what you have said... I don`t know what I don`t know.

I think that is why it is so essential to work with others, either through local businesses or forums like SuN. Of course, the other side of that is that SBOs also need to be open to the fact that they do not know everything, and actually willing to listen, instead of being fearful.

THAT is a hard bill for many.

I find that the Pareto Principle applies far more to entrepreneurs than for corporate employees.

At a large company, you can afford to focus on niche tasks and follow them through to the end.  When you`re running a startup, the work that needs to get done will nearly always exceed your available time.  Prioritizing your work and focusing your efforts on the aspects of the business that will provide the greatest impact is extremely important.

Also, I think that having a co-founder is also worthwhile.  This is particularly true for people who came from a very social work environment.  Laboring day after day by yourself can become lonely.  Having someone else who is just as committed as you are, and can help boost morale when times are rough (and there will be those times) is really invaluable.


-------------------------

Fundamentals for Founders:
The Practical Guide to Kick-Starting Your Business