Advice for Entrepreneurs in an Uncertain Economy
(ARA) - The news ticker on the TV at the gym shows the dollar
falling, the morning paper forecasts economic doubt, and the economic
outlook appears to be dreary everywhere you turn. While it may
seem counter-intuitive, business experts will tell you that now
is a great time for entrepreneurs looking to start a new business.
Often, times like these are when fortunes are made.
But how can an aspiring entrepreneur go about starting a business
when the market seems against them? How can someone with big plans
and new ideas ensure success in a dramatically different economic
atmosphere? There are two things that will always be essential
in getting a new business off the ground; a water-tight business
plan and capital.
From Drawing Board to Blackboard
Those possessed by the entrepreneurial spirit and raring to get
their business up and running sometimes find it difficult to translate
great ideas into a well-thought-out business plan. For those,
a trip back to the classroom may be necessary. Many entrepreneurs
consider enrolling in an MBA program in order to fine-tune business
practices and methods before a real-world launch.
“I get to see people who are very talented walking in the door
a little lost -- perhaps lacking some skills, habits or practices
-- become great business people,” says Phil Siegel, a successful
serial entrepreneur and teacher at the Acton School of Business.
While traditional MBA programs have faced criticism for churning
out risk-inclined financial speculators and investment bankers
that led to the near-demise of Wall Street, other MBA curriculums
with a focus on sound business practices and principled entrepreneurship
are seeing a spike in interest.
“An MBA isn’t just for someone looking to land a job on Wall Street
anymore,” says Siegel. “There are a few great schools offering
an education that teaches how to really start and run a business
from the ground up.” A handful of respected schools focus on the
skills necessary to build and operate a business by offering MBA
programs with entrepreneurship-specific tracks. Acton, where Siegel
teaches, furthers the trend with their intensive one-year MBA
in Entrepreneurship, an entire program focused on developing principled
entrepreneurs and teaching them the tools, skills and judgment
they need to run their own businesses.
Finding an Investor
For those who have the entrepreneurial enthusiasm, the know-how,
and the structure in place to start building a business, but don’t
yet have the funds to do so, the next step is finding an investor.
Siegel says not to get discouraged even though investors may seem
more tight-fisted given the economic downturn. “If you’re looking
for money for a new venture, there are plenty of investors out
there,” says Siegel. “The current economy hasn’t really affected
the enthusiasm for great ideas.”
However, he cautions that all the normal “do’s and don’ts” of
seeking funding are magnified in this kind of environment. Siegel
urges entrepreneurs to:
1. Have a plan. “Come up with a business plan that is clear, concise,
internally consistent and reasonable for the market opportunity.”
2. Know your customer. “Understand your customer and know why
they would buy your product or service instead of what they buy
today. Do market research, and have customer ‘pilots,’ if necessary,
to prove that your product has value.”
3. Seek out experts. “Bring experts to your aid; they can help
increase your credibility. In good times, people tend to believe
your story, but in bad times, they’re more skeptical.
4. Prepare for profits. “Having done your business planning and
preparation, ask yourself how you’re going to spend the money
you are seeking. Who do you want to invest in your venture? What
milestones are you going to reach in this round of investment
capital? What will you need in terms of financing after you achieve
your initial goals to get cash flows to break even?”
There will be many stops along the path to any entrepreneur’s
first ribbon-cutting. Whether an MBA, an investor, both or neither
are in their future, the advice given here should help any startup
weather the economic storm.
“People are still willing to write checks,” concludes Siegel,
“they’re just a little bit more careful, and a lot more cranky.”
For more information on the Acton School of Business’ one-year
MBA in Entrepreneurship program, please visit www.actonmba.org
Courtesy of ARAcontent
