Passion to Profits. Alice LaPlante

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      If you have a high need for challenge in your business life, it’s important to develop positive means to meet this need, especially once your company is established and the initial challenge of starting a company is met. Otherwise, you may find yourself continually starting new projects that divert attention from your company’s main goals. As you plan your company, establish goals that not only provide you with sufficient stimulation but also advance—rather than distract from—the growth of your business.

      ■ Cash. Every entrepreneur wants to make money. Perhaps it’s just enough money to provide a decent income; perhaps it’s so much money you can buy a jet. How much you want or need affects how you’ll develop your business. Will you need investors and when? Will you sacrifice control to grow the business quickly?

      Keep in mind there are sometimes trade-offs between personal goals. For example, wanting more cash often means having less control, while staying at the center of the creative process can necessitate having a partner or growing slowly—once again trading off control or cash.

       business Buzz

      words

       “monetize”

       Monetizing is the process of transforming something—an idea, invention, or creation; a website or software programming; or an action—into a product or service that someone else deems valuable enough to pay for. For example, writing and selling a book can be seen as monetizing one’s thoughts into a product that people will have to purchase. Accepting ads on a “free” website monetizes that website for its creators. Likewise, building a company to sell your new invention can turn an abstract idea into something that actually brings in money.

       The Four Aspirations

      Once you have considered the Four C’s, you must continue to define other aspects of your vision. A good way to proceed is to choose which one of the following Four Aspirations fits your personal, professional, and financial goals:

      ■ Actualizing Activity

      ■ Solo Sustainer

      ■ Balance Business

      ■ Visionary Venture

       Actualizing activity

      Everyone likes to make money, but for some entrepreneurs, making money is not the primary reason to start a business. Actualizing Activity businesses are those launched by entrepreneurs who are primarily interested in meeting personal interests or fulfilling personal goals. The key factor is that money made in the business is not critical for financially supporting the business owner’s lifestyle. The fortunate individuals who launch Actualizing Activity businesses already have other sources of income—for example, pensions, spouses or partners who are already bringing in sufficient revenues, or investment income. These people can choose which business to start based on how it meets their personal goals rather than their financial needs. Thus, a previously successful engineer might open a gallery to fulfill a need to be involved in the arts or a model railroad enthusiast might establish a retail hobby shop to satisfy a desire to build a local community of like-minded individuals—even if those businesses don’t make them much money.

       Solo sustainer

      The largest number of all businesses fit into this classification. These are one-person ventures that provide critical income for the entrepreneur—and often the only source of income for the entrepreneur’s family.

      Solo Sustainer businesses represent the classic self-employment business model—frequently called “sole proprietorships” (see the Independent Consultants/Solo Practitioners Special Section at the end of the book). These businesses are owned by one person, are typically non-incorporated, and it’s not unusual (although never recommended!) for the entrepreneur to mix business and personal expenses. Self-employed accountants, physicians, and others who provide professional services fall into this category.

      Businesses in this group share these characteristics:

      ■ Income from the business is critical to maintaining the lifestyle of the entrepreneurs and their families.

      ■ The entrepreneur generally works alone (or perhaps with the aid of part-time administrative assistants or independent service providers, such as attorneys and accountants).

      ■ The business generates current income for the entrepreneur rather than creating ongoing income streams that could continue even if the entrepreneur were to leave the business.

      In other words, in Solo Sustainer businesses, the business sustains the entrepreneur, and the entrepreneur sustains the business. Once the entrepreneur stops working, the business stops—period. In essence, the entrepreneur is the “product” that the company sells, and is the sole income generator for the business. There is no “business” independent of the entrepreneur.

       Balanced business

      When someone uses the term small business, they usually mean this type of business. “Balanced” doesn’t mean that the books are balanced. Nor does it refer to any other specific aspect of the business’ management or financial well-being. Rather, it means that the goals of the venture’s founders are fairly well balanced in that:

       The business is designed to be a career for the owner.

       And

       The business provides jobs for others.

       The business is designed to provide income for the entrepreneur.

       And

       The business may be capable of building value independent of, and lasting longer than, the entrepreneur’s personal involvement.

       The business is small enough for the owner to be able to control it.

       Yet

       The business is big enough to be able to support growth.

      Ideally, a Balanced Business will develop value in addition to the annual income it produces for the owner and the paychecks it generates for employees. With good planning and development, many of these businesses can be sold to others when it comes time for the entrepreneur to retire. They can also be passed down to family members or employees. Restaurants fall into this category, as do construction companies, automotive repair shops, and just about any kind of Mom and Pop retail stores.

       Visionary venture

      The entrepreneur who starts a Visionary Venture has a different kind of ambition than those who start other types of businesses. Yes, they may be starting small, but their vision doesn’t stop there. These entrepreneurs have plans to grow big. Their goal is to develop a company that will grow into a major enterprise—one worth many millions of dollars. They envision a company so substantial that it will become a household name, with publicly traded stock. Or they may hope that an even larger corporation might acquire the business in the future. Don’t be surprised, these entrepreneurs think, if one day you see them on the cover of Fortune СКАЧАТЬ