Module 3 - Start Where You Are

AUTHOR'S NOTES

When talking to enthusiastic individuals who are researching and writing their business plan I’m often asked the question, “where do I start?”

Great question! Without exception the start up phase requires you to answer basic starting questions such as:

 
  • “What are my entrepreneurial resources?”
  • “What attributes do I possess?”
  • “Who are my mentors?”
  • “How do I get access to mentors?”
  • Please add your thoughts and ideas to complete this list

The startup phase is more than a passion. It’s about: “do I have what it takes to become a successful entrepreneur” (the right ingredients)?

 

 

Right ingredients are:

 
  • Persistence
  • Positive Realistic Outlook
  • Knowledge
  • Gentle Aggressiveness – ‘Go Get’er
  • Courage vs. Afraid
  • I’m going to let you complete this list, also!

Reflecting on all the human emotions that an aspiring entrepreneur experiences, I believe the greatest one to overcome was:

Fear of Failure!!

 

You will be introduced to a family that is starting down the road to business ownership. 

The Path to Entrepreneurship

They will be dealing with many issues that are common to all entrepreneurs as they begin this journey.  Beth and Bob make up the parents of the Smith family.  This introduction was to let you in on my story, because I have “walked a mile in the Smith’s moccasins” experiencing the same fears that they will be facing during their startup phase.

The hope and prayer is that the family business will survive and prosper.

Janet, my four month pregnant, stay-at-home wife, and I purchased a small established general insurance agency from a retiring part-time agent. Guess who became the secretary and bookkeeper? Your answer is correct!! Since the Connelly Insurance Agency was started on a ‘shoe string’ we operated the business from our spare bedroom with used office furniture purchased at an auction. January 1, 1972 is as vivid as if it were yesterday. The residual commission income provided cash flow monthly but no guarantees. None!!

Within two months a nearby general agency became available due to a sudden death of a competitor agent. His widow offered the agency for sale as a cash sale. The competition among neighboring general agencies was fierce bidding on the purchase price. Approaching our banker about the opportunity she was agreeable to offer a line of credit if Janet and I could secure the borrowed money. Success!! Oh, it’s only because my in-laws who co-signed the bank note believed that we were committed to the long term repayment obligation.

Janet and I experienced similar fears in the start-up phase, too! I can remember that she and I asked each other:

 
  • “What if we fail?”
  • “Should I plan to return to old job teaching school if the business does not meet the financial obligations?”
  • “What if we did not have the money to pay off the bank loan?”

Since my in-laws co-signed the bank loan, they were obligated to pay the unpaid loan.

 
  • How will we ever be able to repay parents if we failed?
  • What will happen to our family relationship knowing we have this unpaid personal loan commitment?

I should have prefaced the writing, that prior to risking all our personal assets and my in-laws retirement savings in our new endeavor, I had five years’ experience selling insurance for a direct writer insurance company that provided excellent training in the early years when entering the business.

CASE STUDY: BETH BUYS A BAKERY