INC-centricity

Entrepreneurs Tale of the Tape

The numbers are compelling, but perhaps not surprising: entrepreneurs make our economy - period.  Our economy isn't driven by social programs, or by AIG/Lehman Bros/Morgan Stanley/General Motors or any other combination of banks or big business.  The concept that "What's good for GM is good for America" has been turned on it's head:  "What's good for America is good for GM"!  And, what IS good for America?  NEW BUSINESS CREATION!

The Kauffman Foundation compiled statistics that make this irrefutable. Among them:

• All net job growth in America from 1980 to 2005 came from companies less than 5 years old.
• One-third of all new jobs come from the creation of new businesses.  That doesn't factor in the job creation from companies that are just a few years old. 
• In 2007 - which wasn't a "great" year economically speaking - 495,000 new businesses were created every month.  During that year one-third of 1% of adults created a business per month. 
• 40% of young people between the ages of 8 and 21 would like to start a business someday - or already have. 
• New businesses are 3% more productive than mature businesses.  And, 5-year old companies are 5% more productive than mature businesses. 
• On average, 75% of startup capital comes from equal parts owners equity and debt, including credit cards. 
• Angel investors average 27% return on startup investment. 
• Twice as many high-tech startups have founders over the age of 50 than younger than 25. 

If we are serious about economic recovery, we better get serious about helping entrepreneurs and would-be entrepreneurs start new businesses.  Need a job?  Start a business!

We Believe in Entrepreneurism

Zogby Interactive conducted an interesting poll of Americans to see where the nation is placing its faith in a better future. "Who will lead us to a better future?"  Here are the results:

• 63% - Small business and entrepreneurs
• 52% - Science and technology leaders 
• 38% - Family and friends  
• 36% - Ourselves 
• 32% - Non profit groups 
• 31% - The government 
• 21% - Big business 
• 13% - The media  

These findings shouldn't surprise us.  Capitalism provides inherent economic freedom and opportunity.   Because of that economic freedom and opportunity, capitalism connects us to our hopes and dreams. 

If we are to hope for a better economic future, it will be through our fundamental belief in economic freedom and opportunity that is manifest in this poll as faith in entrepreneurism and small business.

11 questions that can help you choose the best business entity for you

Small business veterans may differ on politics, taxes, management styles and even on business models. But one thing they generally agree on is this: the business world is a dangerous place.

In business, there is potential trouble literally everywhere –contracts, product liabilities, employee problems, intellectual property mistakes, etc. - clogging our courts with litigation and costing small business billions of dollars. Too often, those costs reach beyond just the business world and find the pocket of unwary entrepreneurs that failed to grasp the value of protecting themselves by incorporating. But choosing the right type of business entity to gain the protection you need can be a real challenge.

Business Articles

Here is a website that has a number of articles for business owners. The articles range from business to self improvement and are detailed and very helpful. I hope that this site provides information that will help to improve your business. Click on the following link below to bring you to the whole article.

 

http://ezinearticles.com/

 

Starting a Small Business, Part I

I'm fortunate to be able to work day in and day out with entrepreneurial minded people.  One characteristic in common with all of these people is VISION.

Vision is probably the first step in starting a small business.  Without vision, there is no dream, no plan, and probably no success.

When making the determination whether a particular business opportunity is right for you, consider the following:

1) does the business tap into your skills, experience, and interests?  You should be passionate about your vision. Without this passion for loving what you do, you run the risk of failing the project. 

2) can this vision make money?  Determine your breakeven point.

3) do you have a plan? Write a business plan.  This may include a business description, a sales revenue forecast, profit and loss forecast, capital spending plan, cash flow forecast, marketing plan, personnel plan, and specific business goals.

4) do you have ample capital for the project?  There are numerous sources of capital for your startup including your own salary and savings, home equity, credit cards, investment from friends, family, and business associates, banks, commercial lenders, venture capitalists, and the sellers of existing businesses.

5) do you have a marketing plan?  How will you get your product or service in front of potential buyers?

Make your VISION a REALITY with a little advance planning.  Next time we'll discuss the types of legal structures available for your business.

Business Performance

I found an article that talks about business performance. Making sure that your company is functioning competitively will determine its success. There are questions asked in this article that help you ready your business for success. Enjoy!

http://www.pwc.com/extweb/challenges.nsf/docid/3ddf16cc86dc60b18525701300574bf0

Does the Better Business Bureau actually provide value online?

I received a letter today from the Pam Morgan, President/CEO of the Better Business Bureau of Northern Nevada, an organization that my company has belonged to since 1989 - and has maintained an excellent track record, I might add.  This is the second letter I have received from them in the last couple of years on the same topic, and one that I believe demonstrates clearly that the BBB does not necessarily provide what it claims to provide its members: the right to promote the fact that they belong to the BBB.  The issue is regarding the limitations the BBB places on PAYING MEMBERS regarding links to the BBB website (which you would wrongly assume they would actually encourage) or use of BBB logos.

Nevada Corporation Handbook is released in updated 9th edition

I finally finished the latest update of The Nevada Corporation Handbook, which is available directly from the publisher, Strategic Press for $39.95.  This new version covers the 2003 legislative changes in Nevada law, including the new Limited Liabilitly Limited Partnership (LLLP), and changes in charging order statutes for limited partnerships and LLCs.  The new edition also contains footnotes providing case references, web site links, and background information on a number of covered topics.  This latest edition will also be available soon on all the usual web book retailers. 

Do You Have What it Takes?

How do you know if you have what it takes to be an entrepreneur?  I can tell you, entrepreneurship is not for everybody.  It takes an interesting mix of patience and impatience, risk tolerance, creativity, passion, vision, organization, financial acumen, and street smarts.

I found an interesting article from the Harvard Business Review  that provides a "litmus test" for entrepreneurship, and includes several brief case studies of successes and failures.

- Derek

Census data back Nevada's business-friendly reputation

Link: Las Vegas Review Journal    Anyone familiar with my background knows that I have been a longtime supporter of Nevada business.  In fact, I've spent the better part of two decades working to promote Nevada as a business center, so it pleases me to see an article like this one from the main newspaper in Las Vegas.  It reports that Nevada led the nation in 2002 for the highest growth rate for small "nonemployer" businesses, adding more than 9,000 new businesses over the prior year.

"That's an amazing figure because this city took a big hit after 9/11" - Cara Roberts, Las Vegas Chamber of Commerce

- Derek Rowley