[net.consumers] How to Start a Business Query

vas@lzaz.UUCP (V.SNYDER) (01/16/86)

Does anyone have any suggestions on kits or books
that can tell you what you need to know in order
to start a business?  Does anyone know of any 
books, articles, etc., on businesses to consider?
I'm going on maternity leave soon and would like
to use the time to consider this alternative.
One of the constraints would be low capital
investment and of course a pc with printer, etc.
I realize my interests and talents play a big
part in the choice, but I have a BS in Bus. Adm.
and 8 years experience in data processing, specifically,
in technical instruction, project managment, and marketing.
Any suggestions for businesses would be appreciated.

dave@cylixd.UUCP (Dave Kirby) (01/24/86)

In article <479@lzaz.UUCP> vas@lzaz.UUCP (V.SNYDER) writes:
>
>Does anyone have any suggestions on kits or books
>that can tell you what you need to know in order
>to start a business?  Does anyone know of any 
>books, articles, etc., on businesses to consider?


By far the best book I have ever seen on starting your own business is
"How To Start And Manage Your Own Business," by Gardiner G. Greene.
(Hardcover available from McGraw-Hill, paperback from Mentor Executive
Library. My book was printed in 1975, so it may be out of print now,
but check anyway, and check your library.)

Most "Start your own business" books read more like "ABC's of Business
Accounting in 3 Easy Steps." This book, however, is VERY practical,
taken from the author's experience. 


Here are a few jewels from the book:

What is a professional businessman? One who is in business IN GENERAL.
Who doesn't care whether he is in armatures or artichokes. When asked
what he does, he doesn't say "jeweler." He says, "I'm in my own
business." He is probably into real estate, manufacturing, and many
other businesses. He is more apt to be heard talking about market
psychology or employee incentives than about machinery and supplier's
lines.

To borrow from your banker... go in with a victorious attitude... 
Approach your banker as if the question is not whether you get the 
loan but for how much, for how long, and at what interest rate...
Assume you will get the loan from one source or another... You are
doing him the favour of offering his bank your business.
    When you first sit down in the luxurious leather chair... watch out!
You are about to be trapped! The banker will say... "How much money do
you want?" You unhesitatingly mention an amount. You have just lost the
first round. "Why do you need it?" "How do you know this is enough?"
"How do you know it isn't too much?" "Why can't you get along without
it?" He may trap you even further: "Are you sure this is enough?" If you
answer yes, he's really got you.
    What you should have said is, "I don't know. But I thought you, as
my banker, could help us determine this." This avoids all the pat
questions the banker is so carefully trained to ask. He now has to get to
know something about your business... You have now put your banker to 
work for you.

    Your lawyer should be the secretary of your corporation... Most
lawyers provide more negative help than positive. In general they try to
keep you out of trouble. They are usually not entrepreneurs. In fact, they
are frequently poor businessmen. Seldom will he suggest what you should
do, but rather what you should not do. It is up to you to stimulate him
with suggestions.
    You may want to give your lawyer stock in lieu of a fee for 
incorporating your business... If your lawyer doesn't buy this, 
re-examine your business. He may be trying to tell you he sees flaws
or problems. Maybe not... It is simpler and cheaper not to bother with
a retainer in most cases. Let the lawyer bill you for his time, and
that's that. [With retainers] if you require little legal help during
the year, it is a bad deal for you. If you require a lot, it is a bad
deal for the lawyer. Deals in which either party is dissatisfied usually
go sour.

    Choose a small market and develop it until you dominate. Be a big
frog in a small pond. Pick an area where big business is not interested.
They are vicious competitors. Why fight them, when there are hundreds
of markets they cannot touch?

    One technique on how to find and hire good salesmen is to hire salesmen
who call on you. You have an opportunity to look them over and actually
watch them from the other side of the desk.

    Stand back and let your employees make little mistakes occasionally.
But know your people intimately enough that you can step in fast and
prevent a costly mistake. Don't tell a good department head what to do.
Instead, ask him what he plans to do. Let him try it. If occasionally 
his reasoning is not sound, ask him leading questions; a good man will
realise his error and will not need you to correct him.


...........

This book is chock full of practical information and original ideas;
and, as you can see, it is very easy and entertaining to read. I couldn't
put the book down. And I learned a lot from this guy that I would never
have learned any other way except by making the same mistakes he did.
I highly recommend this book, as if you didn't guess.

-----------------------------------------------------------------
Dave Kirby    ( ...!ihnp4!akgub!cylixd!dave)
"Truth will be the hallmark of the Nixon Administration." - Herbert Klein, 1969

john@hp-pcd.UUCP (john) (01/30/86)

<<<<<
<
< What is a professional businessman? One who is in business IN GENERAL.
< Who doesn't care whether he is in armatures or artichokes. When asked
< what he does, he doesn't say "jeweler." He says, "I'm in my own
< business." 
<

On the other hand if you are looking for a particular type of business because
you happen to like doing it then you should get Don Lancasters "Incredible
Secret Money Machine". Lots of tips and techniques for running your own
at home business. Don's into electronics and consulting but his advice is good
for most small businesses.


John Eaton
!hplabs!hp-pcd!john