Are you an entrepreneur? Not everyone is, and that is fine. The world needs entrepreneurs, managers and worker bees, but determining the category that you actually fall in can help make your life more successful. Remember that an entrepreneur is a risk taker and a builder who rejects the commonly accepted idea of security in a paycheck signed by someone else.

The entrepreneur is the one who signs the paychecks for others, and has the self-confidence to take the risks necessary to build the business that provides the jobs for others.

The entrepreneur must be creative, hard working, smart working, persistent, motivated, full of stamina, dedicated, energetic and able to direct the efforts of others. He must be able to delegate duties, train personnel, be affable with all, and enjoy his time spent. The entrepreneur must be, above all, confident in his own abilities, and it must not be blind overconfidence, but confidence in himself as a competent individual.

These qualities hold true of many people who are not entrepreneurs. Many company middle managers, for instance. But the quality that truly sets the entrepreneur apart from all of the others is that the entrepreneur is willing to place his time, money and very life at risk for a dream that he is creating. IN that sense the modern entrepreneur is the equivalent of the pioneer farmers and ranchers of the American frontier, the entrepreneurs of their days.

And of the shopkeepers and merchants who went west, and the prospectors of the California gold rush. Today’s entrepreneurs are the under appreciated creators of jobs for other people, and comprise the fastest growing part of the American economy. It is the small business entrepreneur who drives the economy and makes it possible for everyone to make a living, pay taxes, support charities and contribute to the American way of life.

Choosing the best name for your business is a creative act, but it demands common sense as well. The business name should be catchy and easy to remember, it should reflect what the business does, and it should inspire confidence.

One school of thought is that your business name should include the name of the town in which you live because that inspires some sort of official status. In previous years names of that type were popular and there may have been a point to that.

If that is the case and you are an accountant living in Pittsburgh, then a name like Pittsburgh Accounting and Tax Service may serve you well. That name will appeal to more traditional and conservative customers. But, if your accounting service takes the stress away from doing taxes, and you want something a little more catchy, then Stress Free Accounting might serve your needs more.

Avoiding the boring is important. Nothing is more boring than the first thought most people have—Your Name Enterprises. A business is an enterprise of course, but the name really doesn’t say anything to your customer about what you can do for them.

Another business took the traditional approach, but added to it with a slogan that was used as a part of the name. That company was Springfield Writing Service, a company that produced resumes for job seekers. The slogan “Resumes That Work” appeared under the company name on all company literature for several years, and eventually the company was thought of by most people simply as Resumes That Work. When the internet age came, they simply adopted their slogan as the new company name and even the address for their web site, resumesthatwork.biz.

A great way to find a business name is to glance through the Yellow Pages and newspapers of other cities, far away from yours. Look for businesses like yours that have names that appeal to you, and think of variations, and ways you can alter the names to fit you. And always remember that it is the name of your business that leaves a first, lasting impression.

Creating a business plan is much like drawing a blueprint for the success of your business. It is an exercise that helps the entrepreneur get all of his thoughts in the proper place, and determine what you need to do for success and how to get there, much the way a road map takes you from one town to another.

Parts of the plan usually include: an introduction – defining the purpose of the plan; overview of company – defining what the company is and will be; product description – describing the product the company will sell; marketing and sales-outlining the venues which will be used to selling product such as TV advertising, personal selling, public relations, newspaper advertising, etc; market comparison-describing the current market for the product; stage of development-showing exactly where the company and products fit in the big picture; market trends—how the market is changing, for instance in the world of fast food the trend today is towards multi-concepts at one location; competition—showing who the company is competing against, their strengths and weaknesses, the way a general views his opponent during wartime; management—bios or resumes of managers and key personnel, showing their qualifications and how they can symbiotically interact with each other for the good of the company; and financial information, especially current financial statements and sales forecasting—predictions of future sales.

Your business plan is a living document in that it can be changed as the market and other conditions change, but gives a guide to adhere to. Creating the plan requires the entrepreneur and his key associates to look at each section, pool their knowledge and take and honest inventory of all of the factors involved. They need to discover the strengths and the weaknesses of their business model, and where they are weak determine ways to either de-emphasize that aspect, or find key personnel who have skills in that area. While it may seem to some like a mundane chore, writing and creating a business plan is the first step to success.

Choosing a structure for your business is an important step, and requires doing your homework. Not all structures as suited for all people and all businesses. Basic structure types are sole proprietorship, partnership, limited liability company and corpor-ations. Variations within these structures occur in different states according to various state laws, but are all very close.

Sole proprietorship – the most common type of structure is the sole proprietorship. In this structure, the businesses is in essence another name for the business owner. All profits belong to the owner, and all debts and liabilities are the responsibility of the owner.

This is the simplest type of business structure to set up and simple bookkeeping procedures can be used. The upside to this business type is being taxed only once. The owner’s profits are taxed as income. Most sole proprietorship owners save receipts on all purchases and look for ways to declare items as business expenses to keep taxes low. On the downside, if the business is sued the owner is liable, and if the business acquires debt is personal debt to the owner.

Partnerships – a partnership is just like a sole proprietorship but with more than one individual. Most business professionals recommend, rather than a partnership, dividing shares in a corporation or limited liability company to keep things neater and less confusing and to offset personal liability.
Limited Liability Company – or LLC, actually a very simple form of corporation in most states. It limits the liability of the partners or shareholders and is formed for a specific purpose, such as operating as a business. It is seen as a separate legal entity legally and offers taxation benefits to owners of small companies that are not always available to corporations.

The LLC offers, as the name implies, limited liability. If the company is found liable in a lawsuit only the assets of the LLC can be attached, whereas in a partnership or sole proprietorship the owner’s assets are at risk. The LLC offers many of the benefits of a corporation, with a simpler structure.
Corporation – the corporate structure offers the most protection for shareholders.

It is also the most complicated type of structure to set up. While an owner can set the corporation up on his own, most people hire lawyers to assist in the process. Corporations are regulated by the states in which they are registered and by the federal government. While an individual can form a corporation and own all of the stock himself, he must have officers and a board of directors, and these individuals are tasked with ensuring that the corporation follows all state and federal laws and regulations.

Advantages to a corporation include legal protection from debt and liability, but disadvantages include double taxation – the salary of the owner as well as corporate profits are taxed, and less flexibility of action.

Financing a business is always an important decision, and one subject to many myths and misunderstandings. Many people think that grants and venture capitalists are flowing like rivers. The truth is, while grants for starting a business do exist for some specialized categories, they are hard to get and there are relatively few of them. And while there are venture capitalists out there who will invest in an idea, they are very particular and usually want a large percentage of the new business venture for putting their money at risk.

The most likely place to acquire business capital is through a loan. The easiest loans to get, and those with the lowest interest are those secured by real estate or some other property you may own. If you have a lot of equity in your home, consider refinancing it to raise the money you need. If you own other property of some sort, you have collateral for a loan, and may have good luck with a local banker you know and who knows you.

If you have money invested in a 401K or IRA retirement account, that can be used as collateral for a business loan. The downside is that you are putting your retirement savings at risk, and usually only about 50% if the value can be borrowed due to early withdrawal penalties if the loan had to be called.

Other possibilities are the Small Business Administration, or SBA wing of the federal government. They rarely make loans themselves, but if convinced that you have a reasonable chance of success they will guarantee a loan with a local lending institution. As a general rule, they will want to see a business plan and financial statement and be assured that you have a chance of success.

If buying an existing business, they will probably want to see that you have 20% of the purchase price in your own money. Part of their reasoning is that if you have $20,000 invested in a $100,000 business and the business has problems, you have a large enough investment to work hard for success and not just walk away.

Some lenders specialize in loans for entrepreneurs who can’t quite make the grade with the SBA or the local bank. They charge higher rates of interest, but are more willing to make the loan. If buying a franchised business, many franchisors have their own financing plans. They are willing to risk money because they have a strong success rate, and they very carefully scrutinize the applicants.

One national radio talk show host often says that when needing business capital the best source is people who love you. Relatives, friends and others who know you and believe in you are often the best source of capital.

What investors are looking for is a very simple question, with a very simple answer. Investors want a return on their investment. In other words, they want to be assured that if they invest money in an enterprise, that they have a better than average chance of that investment of money making more money for them. They want to see profit.

Getting a little more specific, investors want an assurance that there is a need for the product or service that a company is marketing. For instance, there would be very little market for pork sandwiches in a predominantly Muslim country because the people there don’t eat pork. On the other hand, a gourmet coffee bar in a college town would have a built in demand for the product offered, gourmet coffee.

After this assurance, investors want to know that the management team and key players involved in the business are competent, that they know what they are doing and are capable of running the business and making a profit. That is the reason that most business plans include resumes for the managers and key personnel.

After key personnel are scrutinized, investors will look closely at a marketing plan to see how the company plans to make a profit. Marketing is a misunderstood work. Because telemarketers are so common, many people think marketing just means selling. Actually selling is a part of marketing. So is advertising, which is paid for and publicity, which is hoped and prayed for. And that is the difference between the two.

Publicity is acquired when a newspaper writes about your company, or a TV station features it on a news program. Advertising is what a company pays to have appear in various media. Other parts of marketing are promotional efforts like trade show. Investors usually like to see an integrated marketing plan, with a specific goal of selling more of the product or service offered.

The IMC, or integrated marketing communications approach, holds to the idea than a coordinated and consistent plan across all levels of marketing will yield better results, and investors love to see this type of plan.

In the end however the answer is still very simple. Investors want to make a profit, and if they invest in your company they want to know how you will go about making that profit.

The old saying is “location is everything.” And that old saying is partially right. Location is very important, in different ways for different businesses.

If your business is a professional office, then being around other professionals is important for the image you wish to convey to clients. Insurance agents and financial advisors for instance will often locate themselves in bank buildings, or in buildings that also house lawyers, architects or other professionals. They want to convey a better image than they would project if their offices were located behind a carnival for instance.

A retail store has a different goal in mind concerning location. Many retail businesses opt for strip centers with convenient drive up parking, making it easy on the customer to see their storefront and stop in. Others utilize shopping malls, which have large parking lots but generate a tremendous amount of foot traffic and benefit as well from people who come to the mall for different reasons, but see the store and are attracted to it.

Some businesses believe in being as far away from their competition as possible, and for some businesses that is probably a good idea. Two convenience stores next to each other, selling the same goods for almost the same prices, are probably just cutting the pie into two pieces, whereas if one were located a couple of blocks down the street both businesses would probably benefit.

Other businesses are able to achieve a symbiotic relationship with the competition. Have you ever noticed for instance that several popular fast food franchises will all locate very close to each other? Tacos, hamburgers, ice cream, pizza, fish, fried chicken, and sub sandwiches will all located close to each other realizing that they all share the same customer base and by making it easy and convenient for the customers, they will all get their turn with the customer dollar and all will benefit. Some survive by serving the overflow of other businesses during busy times of the day, like lunch and dinner rush hours.

Whatever type of business you have, location is important and should receive a great deal of thought so that it can contribute to your success.