Dreaming of your own business? Read this first
Charles Evans has a wife, three kids and a mortgage; a good job; and -- oh, oh -- a perhaps irresistible entrepreneurial urge "to do something on my own."
That's likely why a mutual friend suggested that Evans and I talk start-up. I'm sharing this synopsis of our conversation because we've reached the time of year when people tend to dream about owning their own businesses.
Evans isn't alone. Neither is he Charles Evans -- though he is real. "My boss would fire me on the spot if he knew I was thinking about this," he says.
Here's where our conversation went:
The plan
Evans' answer was typical when I asked if he had a business plan. "Not really. I have some ideas, an informal plan."
Nobody likes to write business plans, but the putting-pieces-in-place analysis that plans require is extremely valuable. You should write the plan yourself, but there are places to go for help.
The Fox Valley SCORE chapter will send a free Business Plan Workbook. E-mail Susie Dressler, sdressler@sbcglobal.net, for a copy. Small Business Development Centers are another source of often good advice. The SBDC at Elgin Community College is among the best. Waubonsee is good. So is COD.
Competition
There are several small companies that do what Evans wants to do. Finding his difference will be critical. "Why should someone hire me?" Evans repeats. "I don't know. I haven't thought about that."
Marketing
Like most start-ups, Evans has no idea how much to spend on marketing. "I was hoping you could help me there," he says.
Generally, figure $30,000 for first year marketing. Some of that should go to a graphic designer who can make your sales materials look professional. For example, you'll need something to send when someone says, "Send me something about your business."
You'll also need a Web site. "I hadn't thought about a Web site," Evans says. "What will that cost?"
If you supply the words, you should pay about $500 a page for a basic site -- home page, about us, services, and contact us.
Family finances
Document household expenses so you know how much you'll need to cover while your business gets going. "I can hang on for a while," says Evans. "One of my biggest concerns is getting the work. I can do the work, but I don't know how to get it." (The business plan and a companion marketing strategy will help.)
Health benefits
"My wife is thinking about getting a job that has benefits -- and coincides with the school day," Evans says. It helps to have an already employed spouse with a good benefit package. Other than something in the schools, finding a job built around school hours could be difficult.
We hit other topics. Evans has an accountant, for example, and I think he'll talk to a small business attorney. Ultimately, however, Evans' go-no go decision will be a personal one.
Got thoughts?
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