Pssst!  Your business start-up idea is not on the internet!  Internet lists don’t guarantee success.  In fact, browsing for best business startup ideas only takes you down the wrong path.  Instead, examine your passions, interests, gifts, and talents.

People search lists of ‘easy to start’ businesses (is there really such an animal?), of hottest businesses, of top ten businesses, and so forth. If you’re looking at lists for inspiration, don’t bother.

A successful search requires thought, experience, and advice of trusted advisors. Leave behind the quick and easy attitude. The only thing that truly works is - you guessed it – persistent hard work.

Find your passion and dream!

To succeed in small business, you are best served by finding your passion and dreams that fit with your gifts and talents. Let’s look at each and do some real brainstorming to find your new small business opportunity.

Make your own list of the three to five things that answer one or more of these questions:

• What do I enjoy about my current job?
• What do I enjoy helping others with?
• What do I enjoy teaching others?
• What do I enjoy talking about?
• What do I enjoy reading about?
• What do I enjoy learning about?
• What do I enjoy doing for others?

All the questions center on what you enjoy, and many ask about your relationships with others. With answers in hand, brainstorm – without looking at the internet – what types of small business startup ideas might be most served by those passions.

Identify your gifts and talents.

Ask others to help determine your gifts and talents. Seek their feedback on your top three gifts or talents:

• according to your spouse
• according to a coworker
• according to a close friend
• according to another friend

Settle on the top three or four most common gifts and talents, and brainstorm what types of small business startup ideas need those gifts and talents.

Don’t choose just one business idea … choose three! Why? I don’t want you to lock in on any one business that may or may not be right for you.  Then, you are ready to set about the task of determining which idea answers a market demand or need.

I know – it’s a lot more work upfront this way. However, the alternative is to charge ahead and fail. Too many people don’t plan and charge ahead. Do it right the first time and succeed with your small business startup ideas.

A final thought!

Once you have followed this process and if you have a personal profile from Meyer Briggs (MBTI) or similar test, see if your strengths and weaknesses help shape your decision.

So you want to own a small business and funding is in the way. We’ve looked at reducing auto expenses, higher education costs and learned all about paying less than retail. But isn’t there a discouraging underlying message in all of this? We don’t question anything and instead, we buy…and buy some more.

Funny to think of how early George Carlin caught on to this troubling trend. This video was from 1986 but the original skit came years earlier. There are over 32,000 storage unit companies (companies-NOT units!) in the US as of 2011 whose only focus is in providing us additional room for our stuff. The average unit is between $50-$100 per month and many individuals forget or abandon the stuff that was important enough to warehouse. This doesn’t include an entire industry built on “organization”. How much stuff is enough and how much is simply too much? Seems like it is too much if you have to pay to store it or buy lots of storage products.

So why do we care?

     Because every time you make a spur-of-the-moment purchase, you make a choice- a choice between the unnecessary and YOUR DREAMS.

You know what is most disturbing? We aren’t any happier-despite bigger houses, multiple cars, better education, dining out and technology. None of that has equaled contentment. And isn’t that what all of this is about-entrepreneurship, freedom, autonomy, small business ownership? We dream of these things because we are pursuing happiness. And stuff has been proven, time and time again, to just not do it. And in fact, the inability to let go of our clutter can stress us out or turn into a full blown mental illness.

Before you spend another dollar on a “thing”, take some time to ask yourself: will this purchase move me any closer to my dreams?

Some additional reading for you:

Authentic Happiness

Lighten Up: Love What You Have, Have What You Need, Be Happier with Less

University of PA’s Happiness Project (assessments, research, scales)

Small business owners: should you ever pay the full retail price of ANYTHING? If you are questioning everything, the answer, increasingly, is no! In an effort to lure reluctant shoppers, retailers seem to be discounting or rewarding us for shopping more than ever. We are talking everything from office furniture and equipment to software to food to clothing. There has never been a better time to be a (savvy) consumer. And those with extreme cost-savings methods have financed college educations on their savings (you could use to help fund a small business) -and given a great deal to their communities as well.

Step one on your plan to save big: sign up for Groupon and Living Social, both social/group buying sites. You will most frequently see restaurants and personal services listed on these daily sites but they also run a pretty broad variety of retail goods.

Step two: list ALL of your favorite merchants, including small business suppliers, and go to their sites and register. Be sure to check the “yes, send me special offers” box to receive coupons via email. Be sure this includes your favorite grocery stores and move on to step four.

Which is: keep all of your loyalty cards on a key ring OR consider the CardStar app for your smartphone. You can store all of your loyalty reward numbers on this and show this checkout. Always use your rewards cards. Most large grocers (they have apps too!) allow you to download coupons directly to your loyalty card and keep track of coupons, gas points, etc. via the grocer app.

Step five: investigate some secrets of extreme couponers. Let’s be real. Few of us have the time/energy to go to the 20-40 hours per week of work these folks do, BUT they do sometimes save $60k or more per year and often donate huge amounts of food and personal products.

Step six: dig deeper into your airline rewards program. Generally you can use your rewards card to get discounts on everything from meals to clothes and accrue airline miles in the meantime! Shop via their site first.

Step seven: consider used. Seriously, with Americans being the #1 consumers in the world, we give away or throw out perfectly good things. Check craigslist for electronics, furniture, vehicles, office equipment and check Amazon for books, music, electronics, etc.  Don’t forget your local thrift store for clothes. Ask yourself IF you have to buy it new.

I could write an entire book on this topic, but if you only do a few of these things and track/invest the funds toward your small business or other goals, you will be surprised at how quickly the savings. What do you use for big savings?

Succession planning. Heard of it? Too often it is one of those last minute thoughts or assumptions on the mind of a small business owner. If that’s you and you are, well, getting up in years, I’m hoping you’ve given thought to who will replace you as owner or CEO. Most small business owners have involved, or attempted to involve, their sons and/or daughters through the years in the hopes that one of them will rise to the occasion and be a fitting candidate. However, many a company went down the tubes when a disinterested child or grandchild with a sense of entitlement was placed in charge. Just because they are family doesn’t mean it is in their best interest, or that of your few or many employees, to pass the business down to them. 

Making the decision of who will run the company after you are gone requires a real test of will, a lot of truth seeking and a solid relationship with your attorney and accountant. Depending on your age and how invested in the business your spouse or children already are, start setting the expectation early that the person who is most equipped to lead will be left the responsibility to do so-and that it won’t necessarily be a family member. This is also dependent on whether those under consideration are interested in your leadership role.

But how do you determine who those candidates should be? No less that 5 years before your retirement, start doing the following:

• Identify the key people you are most interested in assuming your role
• Start having conversations with them on whether there is an interest in leading-but that you are making NO promises
• Plan on rotating them into a variety of roles and solicit honest, no- holds-barred input from their direct managers on their performance
• Invite them to higher-level meetings
• Start having them lead meetings that you sit in on
• Give them teams to supervise with the understanding that there will be performance input from those team members
• Be transparent. Let them know where they are failing and succeeding, what your fears are
• Continue to encourage learning and leadership
• Continue to have conversations about their commitment, their vision for the business and stay open-minded to their ideas
• If you choose to leave someone not related to you in charge, consult your attorney and accountant on how to protect your family member’s investment in the business

Don’t wait until the last year to explore possibilities. Succession planning should be part of your small business vision from the beginning. But if it isn’t, don’t wait to catch up!

Ever buy a loaf of bread for $1,200?  Me neither!  Know why – because I know what a loaf of bread ought to cost and I won’t pay more.  When you buy a business, do you know what it ought to cost?  A CVA can help you avoid paying too much because they specialize in knowing what the right value for a business is.

In my business, I wear many hats: CPA, attorney, certified financial planner (CFP), coach, consultant, trainer, teacher, boss. You get the drill. One of the hats I wear is that of a CVA: certified valuation analyst. What the heck is that? Essentially, I help businesses determine their sale value. This means I’m helpful for a seller or a buyer because determining actual value impacts both on a variety of levels including reducing risk.

When you hire a CVA, don’t forget to check their reputation and interview them. You want to know how they work, and whether their techniques include the research that is crucial to a thorough evaluation. Try to avoid internet-based companies that may not actually visit the company before they make their recommendation. Business brokers are better, but their focus is usually more on the sale than the value of what is being sold. Your best bet is to invest in a CVA who will know how to make sure you get the best deal.
I’m more likely to look at the transaction from an investor’s point of view before making my decision. In other words, I put myself in your shoes.

When I value a business, I must determine the risk level of the business. My preferred strategy is the Ibbotson Buildup Method. In this method, different risk factors are combined one at a time, in layers, to determine the risk of the business. This risk factor becomes the discount rate to apply to the after-tax cash flow of the business. Those individual risk factors are the risk-free rate, the equity risk premium, the size premium, the industry-specific risk premium and the specific company risk premium.

Beginning with the risk-free rate, each of these premiums build upon the previous one, from the most general to the most specific factors in a company’s value. After the specific company risk premium is applied, you’ll have the right discount rate for their cash flow.

There is a great deal more information about this method, determining risk and finding a certified valuation analyst who can offer input that is crucial to the sale or purchase of a business. If you’d like more detailed information, I encourage you to sign up for my FREE e-course: How to Buy a Business. You can also contact me at (505) 516-1777.

With a shrinking, rocky economy come lots of opportunities! Small business owners who are struggling and no longer willing to invest in their business are looking to sell their ventures. It might be the perfect time for you to consider buying an existing small business. You should definitely consider the unique sales proposition (USP) of any business, whether you develop or purchase it. If it doesn’t speak to a particular market or fulfill an unmet need, there is no point in pursuing it. And you should also consider your personal skill set and if it is matched to the opportunity.

There are many other things to consider when purchasing an existing business. As a CPA, attorney and certified business valuation expert, I have over 30 years of experience helping determine the appropriate value and viability of business opportunities. Right now, I’m offering a FREE 12-lesson e-course “How to Buy a Small Business” which you can receive by signing up below. It can easily save you thousands of lost dollars and steer you towards the perfect business for you.

I’ve encouraged clients who are interested in starting or buying a business to pursue something they are passionate about. I’m not alone in giving this advice. Hundreds of business books are written on the topic alone. But it occurs to me that we’ve forgotten to advise clients to also pursue something they EXCEL at. I heard a recent example about playing tennis. The guy telling the story shared that he loved to play tennis. You might even call him passionate about tennis. So was the tennis pro that was working with him. Difference is, only one of them is really good and making money at their passion.

What are your natural God-given talents that you’ve enhanced through education, experience and by building skills? Though it is geared towards being an employee for the most part, Marcus Buckingham’s Now, Discover Your Strengths can help you discern what those exact talents are. The reality is we aren’t always good at what we are passionate about (think karaoke singers!) and we aren’t always passionate about what we do well. The trick is to find a combination of both, and then to find the underserved market that you can uniquely provide value to.

While it might be tempting to think you can bring your skill set up over time, you are already behind the 8 ball if you choose a business that you can’t thrive at on day one. Small businesses struggle enough in the early days without dealing with a significant learning curve. And if you don’t have the interest or excitement, well, nothing can make miserable days doing something you hate feel much better…not even money.

Many people were downsized this year or last and dream of not returning to corporate America. They fantasize of starting a business but are afraid of failure and the current economic situation can make a person even more shaky when it comes to taking risks. However, where there is a troubled economy there is also opportunity and you can take that severance package (or part of it) and invest it in your own business. How do you know if it is a risk worth taking?

If you are going to take a financial risk, you must have a true passion for what you want to do. Life is too short to invest the time and money a new business takes if you don’t really care about what  you’ll be doing. You must have a solid idea, one that solves a problem, provides value and has a market that you can serve. If there are similar businesses, you must really investigate what is going to make yours unique. Why will customers want to come to YOU and not your competitor?

How much time are you willing to invest? This is a really important question, but not just for you. Is your family willing to give you up for the time necessary to start a new business? Make the expectations really clear up front so that there are no hard feelings and, if it makes sense, involve them in the process.

Be prepared to market, market, market in every way possible. There are many marketing doorways to make available to your potential customers. Create as many as possible so they can find you and what you offer.

Start small, keep debt low, continue to refine your processes, build a team of cheerleaders, reach out to your customers where they live and breathe and ask for guidance when you encouter problems. Don’t let the fear prevent you from taking that next step to creating a business that can support you, your family and your dreams!

Money is a complicated topic. People divorce over it. Businesses fail because of lack of understanding of it. Even large corporations stumble and fall because they made bad decisions about it. We’re given very little education, if any at all, about managing money and investing so it should be no suprise that there aren’t more of us who are savvy about it. This is where a financial advisor comes in. I’ve also seen financial advisors called “financial coaches”, “financial planners” and, most recently “financial therapists”. There are many well-meaning people who are willing to advise you on how to fix your money problems and how to build wealth for now and retirment. How do you know you are working with someone credible and trustworthy?

Ask your financial planning candidates about their credentials? Are they a Certified Financial Planner (which requires study and passing a national exam), a Certified Public Accountant, an attorney (yes. I am all three!) ? A reputable financial planner wants to be educated! Ask them to prove how they have been.

Get real input from people you trust to find out who they are using. Ask about their results and the person’s responsiveness, style and values. You want someone you mesh with.

Find out what services they offer. Can they do estate planning? Do they specialize in retirement planning? Can they advise you if you are suffering through financial difficulties.

They should not sell products! No insurance, stocks, annuities, etc.

Are there any disciplinary actions in your history? Make sure this person is reputable, not just with clients but also with their licensing and certifying bodies.

Find out how much and when you will be charged. Are phone calls included or do you pay by the hour for those? Get a written service agreement.

With the markets in flux, the economy shaky and your retirement less than secure, a financial advisor can be your winning edge, both in your personal and business lives. Don’t hesistate to contact me to get a feel for how I operate and what I can do for you.

Not knowing how to buy a business that is right for you could wipe you out financially. You are investing both money and time into a new business venture. Don’t waste either. I’ve seen too many people that get an idea or stumble across an opportunity that can’t wait to get started. Those people fail more times than they succeed. You need to follow a process that’s proven to work.

How do I buy a business that’s right for me?

First and most important in considering how to buy a business is to develop a great business idea, find your value proposition or your unique selling proposition, and determine whether it is a fit for you personally.

The second step in how to buy a business involves a careful search for businesses for sale that fit your idea. Hopefully your search will turn up multiple opportunities to buy a business. It’s always important to have more than one option. When you quickly accept that one option, you soon feel it is something you must pursue which often leads to poor decision making.

Evaluating the business opportunity.

When deciding how to buy a business right for you, you must evaluate each opportunity carefully. It must fit with your business idea and your value proposition. If it doesn’t, it’s not likely the right opportunity for you. Again, it’s best not to have only one option to evaluate. When there is only one option you’ll feel you must press on and will likely buy the wrong business or overpay for it.

If the business for sale is a fit, you still need to do a small business evaluation. Is this a quality business that will give you the best opportunity for success? There are many questions to answer when considering whether to buy a business.

There are two major areas of concern. The first will require a thorough review of financial information. The second requires a thorough review of the company itself, its people, its products and services, and how it is run.

Don’t rush to buy a business. Go through the steps outlined here. They will save you both time and money by keeping you from making a poor decision and will help you to find the business that’s right for you.

I have a number of articles that will help you find a business for sale, evaluate the quality of the business, and determine what the value of the business is. Check out the advice in those articles, they’ll save you time and money!