We’ve all seen it. An entrepreneur opens a new business, but before long we notice it’s closed. The classic example is a new restaurant, often in a location that has been the scene of more than one failed restaurant before. They ran out of money before the business broke even. The time and money they spent is gone, and their lender probably has a claim on their home and other assets.
How does this happen?
First, they didn’t have enough industry and management experience. It’s good to have a passion for a business, but if you haven’t spent enough time working and managing in that kind of business, there’s a good chance you will over-estimate your projected revenue and under-estimate the problems, delays and costs that will confront you. And you may not know enough to anticipate and avoid them.
What should you do instead?
- Start a business in an industry where you have work history and management experience.
- If you don’t want to stay in that industry, get a job in the industry that interests you. Yes, this will delay the launch of your new business, but it can also delay big financial losses and a lender having a claim on your house. Besides, once you get some experience in this industry, you may not like it either.
- Recruit a partner who has relevant industry management experience.
SCORE counselors are available locally or on-line to help you create and manage a successful business. Call us in Pinellas County at (727) 532-6800 or go online to www.pinellascounty.score.org.