What to consider before opening a business


Editor’s note: Michelle Stockman works with Little Rock-based Arkansas Capital Corp. to promote entrepreneurship development around the state. Stockman earned a bachelor’s degree from Loyola University-Chicago in communications and fine arts, and earned a master’s in entrepreneurship from Western Carolina University. Her thoughts on business success appear each week on The City Wire.

We are in an economic time where many people are and will be faced with enormous life changes and decisions to make regarding careers, family and living. Many individuals will use this time or their lost job as an opportunity to open a business. However, caution and encouragement are needed for those interested in starting their own businesses. Here are five tips to consider before entering the entrepreneurship world:



1. Research! Opening and running a business takes a lot of research, and it means going beyond Google to get your answers. The first research you need to do is to find out if opening and running your own business is for you. While entrepreneurial skills can be learned, having what it takes to run a business is not always natural for everyone. Secondly, you need to research the industry and market place in which you intend to operate. This means talking to others, investigating possible competitors and digging deeper than you did for your last school research paper.



2. You need to have some basic knowledge of the industry you would like to enter. If you have no experience in the industry, take some time to learn about it (or work in it) before you open the business. Business takes an enormous amount of passion, and you may find that you don’t like the industry as much as you thought.



3. Don’t go after a business that seems to be in a “hot” industry. Chances are that you are too late to get a decent market share within the industry. Like buying stocks, by the time the average person catches onto the hype, the opportunity to make money has dissipated.



4. There is no magic in getting rich quick in a business. Some entrepreneurs have been lucky to create and sell a product that created the next hot industry. However, for most entrepreneurs, hard work, time and actively managing the business has created an organization capable of making an honest living for the business owner. Owning a business is not the easy ticket to retirement. 


5. Seek support. Entrepreneurs cannot be everything their business needs of them. No one person can “do it all” in business, therefore the support of others during the life span of the business will increase the likelihood of success. Friends and family are a needed support, but they may not be the best support at all times. Consider service providers like the Innovation and Entrepreneurship Center as well as the Small Business Technology Development Center as good friends, especially with more technical needs for the business.

Stockman can be reached at [email protected]