Published: Saturday, Apr. 04, 2009

Updated: Saturday, Apr. 04, 2009

Bad economy? Become an entrepreneur

I normally write this column from the viewpoint of the established entrepreneur. However, in this column I would like to explain to people who are considering or who must consider new livelihoods, that entrepreneurship may be the perfect vehicle for them.

In today’s tough times, working for someone else is no longer considered secure. With an unemployment rate heading northwards of 10 percent and an economy that is not yet stabilized, now is the time to consider starting your own business.

Being in charge of your own destiny is both scary and rewarding. It is scary as everything rests on you, yet it is rewarding for the very same reason.

So many people say that entrepreneurs are born, but I am here to tell you that entrepreneurship is a learned discipline. Some people just learn faster than others. The best entrepreneurs that I have seen are those who are committed to learning continuously and really care about people.

Starting a small business in a smart way will significantly reduce the risk of this undertaking. First, lack of adequate capital and lack of knowledge about the business are what kill small businesses. Both of these risks can be eliminated by approaching the task of starting a business with caution and knowledge.

The best way to ensure that a start-up business has adequate capital is to start slowly and let the funds build up through operations. I frequently recommend that prospective entrepreneurs do not quit their jobs to start their businesses, but that they start in the evenings and on the weekends. By starting on a part-time basis, the cost of start-up is much lower, and as an added benefit, you get the opportunity to see if it is really what you want to do before you go into it full time. Additionally, limiting how many dollars you want to put into the new venture reduces your risk and loss.

In order to be successful, a potential entrepreneur has much to learn, but there are so many places to get help. The U.S. Small Business Administration has set up Small Business Development Centers in almost all medium to large size cities, usually those attached to a university. At these centers, counselors will guide you through the process of getting needed licenses, legal documentation and so much more. Small business centers are wonderful sources of help and assistance.

Additionally, there is a wealth of other assistance available out there. Just about every successful entrepreneur, if approached correctly, will be willing to help a potential entrepreneur, assuming that they are not going to compete with them.

Not too long ago, we were helping a couple who wanted to go into the funeral home business. We encouraged them to go to work in the industry, even if on a part-time basis or for free, to ascertain if they really liked it. They were able to get low-level jobs at a funeral home and rapidly decided that it was not the right industry for them. They really saved a lot of time and energy by not just jumping in without adequate knowledge.

Entrepreneurship is a wonderful profession as you get to be in charge of your own destiny and help others at the same time.

However, in order to be successful, you need adequate funding and significant knowledge about your business.

Jerry Osteryoung, is the director of outreach of the Jim Moran Institute for Global Entrepreneurship in the College of Business at Florida State University, and professor of finance. He can be reached at jerry.osteryoung@gmail.com or by phone at (850) 644-3372.