My Passion

Must You Reinvent The Wheel?

by Yank Elliott, MBA & IAHBE Staff Writer

 

As a small entrepreneur trying to start your first business, or any new business, you are faced
with seemingly insurmountable issues all around. Don’t feel like you’re
starting from scratch! Many others have gone before you, so instead of reinventing
the wheel, learn from others what works and what doesn’t work. In this
article, I’ll give you some starting points and some resources.

Every business must provide these basic functions:

Manufacturing, Product Development, or Services

Many home-based businesses will sell products made by others (outsourced). In this day of
the Internet, this is instantly and easily accomplished by using drop shippers
from all over the world and by joining affiliate programs. Usually there is no need to stock products at the entrepreneur’s place of business.

here are also large numbers of home-based entrepreneurs who produce their own services,
write their own e-books, or make craft items. These businesses have the advantage
of low or no production costs; though sales may be low volume, the income is
mostly profit.

Sales

Very few people like to sell, but many home-based businesses are of the Network marketing
variety requiring direct selling to succeed. Services must also be marketed
to the public to succeed. Even if all selling is done via a Website, there must
be a continuing marketing effort to drive buyers to that site.

Finance

Some home-based businesses are able to start with almost no money up front; that’s wonderful.
However, most will need some financing. Sources are personal assets, personal
loans, home mortgage, credit cards, and friends or family. Some will also use
venture capital

Personnel

For the home-based entrepreneur you may say there is no personnel function. Not true.
The entrepreneur is the employee, and the same issues relate to that person
as apply to employees in a Fortune 100 company with thousands of employees.
The entrepreneur is the personnel manager (now more commonly known as human
resources) and must establish appropriate policies for the employee (herself).

One of the first things all human relations departments do is produce an employee handbook
stating company policy with respect to duties and behavior of employees. The
small entrepreneur should write a short list of things she needs to do every
day to accomplish her objectives. Issues covered could be daily hours of work,
how to handle friends and family, ways to defeat isolationism from the surrounding
community, how to obtain any necessary training, and other problems related
to running the business.

In addition to these basic business requirements, the new entrepreneur must find out everything
about their products or services. There are thousands of Websites offering training
in how to start a business and what the owner must know and do. All of these
require some expense and much time to conquer their learning curve. Even then,
how do you have any confidence in what you have learned?

There are better ways. One is to use SCORE, the Service Corps of Retired Executives. Services
are free and easily accessible on the Internet; there is likely a local chapter
near you. SCORE is an affiliate of the US Small Business Administration.

Another excellent source for the entrepreneur is the Kauffman Foundation, a non-profit
group dedicated to promoting the entrepreneurial spirit and entrepreneurial
success. They sponsor training through many organizations all over the US. Contact
them to see if they have a program that can help with your small business issues.

In the U.S. there is a nationwide community college system. Most of these have a small business
development center (SBDC) where the entrepreneur can obtain help with problems.
Call your local college for information.

Most public and private colleges and universities also have small business assistance. If
you are close to one, see what they have.

A source for better ways to sell is the book How to Win the Sale: Telephone Sales Scripts,
Marketing Letters, Voice Mail & Email Messages, by Ann Barr.

Here are two final thoughts on how and why to not reinvent the wheel and use what is
already available. First is a business-type issue which is being conquered by
a church group. A group of Methodist churches realized each of them was spending
untold hours working on their individual plans for things like developing a
small group ministry while others are involved in determining a better balance
in their worship services. So the Free Methodist Website is trying to accumulate
ideas so all churches can benefit and not waste all that time. An example of
what they have accomplished is the Pastor’s Handbook.

Last is a statement from Singapore Entrepreneurs about Warren Buffet’s donation
to the Gates Foundation:

Instead of starting his own foundation, he chose to put the money into a foundation
which is already in operation and has been doing good work. The notion of putting
money into another foundation and not getting so much fame later (in future,
people will remember the Gates Foundation, but maybe not the Warren Buffett
fund or grant) is what I think is remarkable of Warren Buffett.

Save your effort and learn from what others have done and are doing