Tricks Of The Trade Become an expert before becoming a business owner.
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It's a big step from dreaming about starting a new businessto actually doing it. For those who've owned a business before,learning to run a new venture typically requires training andskills specific to the new business. For those who've never runa business, learning to run a new venture also involves masteringthe finer points--everything from accounting and advertising tocomposing a business plan.
Entrepreneurs with varying needs approach the learning processin remarkably different ways. Accordingly, our Building Blocksentrepreneurs are back to share the procedures they followed whenlearning to run successful businesses of their own.
A business writer for the past eight years, Kylo-Patrick Harthas run a successful homebased consulting business since1989.
Al Schneider, usedmall.com
Al Schneider, 57, and his current business partner, HarveyBerlent, had plenty of professional experience in the technologyindustry and were running another computer-related businesstogether at the time they decided to start http://www.usedmall.com .
So when he and partner Berlent launched their Internet-based,electronic classified-listings service in March 1996, they alreadyknew a great deal about running their own business.
Before starting usedmall.com, Schneider already had a solidunderstanding of what the Internet was all about. He'd workedfor General Electric Information Services Corp., which, in the late'60s and early '70s, helped to pioneer the online servicesindustry. He and Berlent tracked the development of the Internet,exploring predictions for its future and surfing the Web.
"Because of that background, we had an in-depth knowledgeof what it takes to offer an online service. The main thing weneeded assistance with, though, was designing a Web site that wouldmake us unique in this new medium," Schneider says. "Wedid searches on the Internet throughout the summer of 1995,checking out other sites for what was closest to our concept.
"We found a local site-development company that specializedin producing the kind of site we wanted," he says. "Wegave the company's employees a set of specifications thatdescribed the primary features we were looking for. The entireprocess took approximately six months." Since then, he andBerlent have become skilled at making modifications to their ownsite.
Suzanne George, Suzanne George Shoes
Before Suzanne George, 34, went into the business of hand-makingcustom shoes in the summer of 1995, her formal training had been incommunications and psychology, not handicrafts or business. Solearning to run her San Francisco shoemaking business involved twodistinct types of preparation.
First, George needed to learn to create custom-made shoes byhand. She enrolled in a reputable technical college in Englandspecializing in shoemaking. "They teach you everythinginvolved in the construction of shoes, from start to finish,"George says. She also worked as an apprentice to learn more aboutsizing before returning to San Francisco.
Next, George enrolled in a six-month training course at the SanFrancisco Renaissance Entrepreneurship Center, a business incubatorand community economic development program, on how to operate aprofitable small business. "I wanted to create a businessplan, and I didn't know how to do that myself," she says."I also realized that the thought of running my own businesswas starting to feel a little scary; I kept wondering if I couldpull it off. Enrolling in the course took me to the next phase offormalizing my business and understanding what it would take.
"The course was challenging because it was so short-termand really packed with information," George says. She foundthe experience so valuable that she's retained ties with theCenter to help other entrepreneurs. "I review business plansfor other people now."
D.J. Waldow, B-School Cleaners
"Because our business was launched with support frommembers of the entrepreneur club at our school, I learned to run itprimarily by asking tons of questions along the way," saysD.J. Waldow, 21, who's been operating a dry-cleaning servicefrom the student lounge of the University of Michigan BusinessSchool since January. Matt Campbell, a fellow University ofMichigan student, is Waldow's partner.
From a technical standpoint, the beauty of Waldow andCampbell's business is they don't do any of the drycleaning themselves. Instead, they've subcontracted with alocal dry cleaner who professionally cleans all items for them. Allthey really needed to learn was how to operate their own businesssuccessfully. Waldow says this, too, was a relatively easyprocess.
The partners learned plenty from the entrepreneur club atschool. "A big goal of the club is to serve as a networkingtool to help people meet and learn from others," Waldow says."Most of the members are MBA students who have actually run abusiness of their own at one point or another, and several havebeen very helpful. The club also sponsors events from time to timeto help people prepare to run their own businesses, such as anentrepreneurial forum earlier this year which featured talks andtips from 20 entrepreneurs and venture capitalists flown in fromaround the country."
Waldow says he and Campbell have also learned from the drycleaner with whom they work.
"We weren't sure what we needed to do about gettinginsurance for our business, so the dry cleaner explained and addedus to his insurance policy as a drop-off station," Waldowsays. "He provided us with invoices and taught us how to fillthem out properly. He also taught us about the need to ask peopleabout any stains on their clothes when they bring them in forcleaning. That's really important in this business, because thelast thing you want is for someone to get an item of clothing backand find a stain still on it."
Where To Find Expertise
There are plenty of places you can turn when you're learningto run an unfamiliar venture. Seek guidance from otherentrepreneurs, reference materials, professional organizations andassociations, training seminars and schools. Community colleges andbusiness, trade and professional associations also frequently offerrelevant classes and seminars.
Some of the most valuable resources for acquiring the knowledgeyou need to get your new business started are Small BusinessDevelopment Centers (SBDCs), which are co-sponsored by the SmallBusiness Administration (SBA) and affiliated with universitiesnationwide. SBDC counselors are available to answer a range ofbusiness-related questions and provide information about localtraining courses and specialized publications to help you startyour business. Call the SBA at (800) U-ASK-SBA to find the SBDCnearest you.
Business incubators, too, can help a new business get off theground. Incubators are organizations sponsored by private andpublic investors that help to nurture new businesses, providingfledgling entrepreneurs with much-needed guidance and support. Tolearn more about incubators, visit the National Business IncubationAssociation's Web site at http://www.nbia.org , or call them at(614) 593-4331.
Contact Sources
B-School Cleaners, djwaldow@umich.edu
Suzanne George Shoes, 526 Seventh Ave., #3, San Francisco, CA94118
usedmall.com LLC, 25 Rockwood Pl.,#4, Englewood, NJ 07631, (800) 683-1608