Survival Guide for Entrepreneurs

If you ask a group of entrepreneurs what they do for a living, they often respond with the statement: "I sell products/services, etc." which may be true, but not accurate. A more correct statement should be "I run a business selling my products or services".

Unfortunately, running a business has several components to the mix besides just the "selling" part of the equation, which could be the critical difference between the success and failure of today's business owner.

When interviewing one of the top training and coaching firms for entrepreneurs, CEO, Ethan Willis of Prosper, Inc in Salt Lake City Utah, we get critical insight to the challenges of entrepreneurism.

Willis, a highly successful entrepreneur himself says: "Most entrepreneurs fail to understand the dynamics of running a business.  His present day business employs over 500 people that serve a national and international customer base. It comes down to the same thing...running a sales business is the same as running any business. It takes a plan that includes some sharp considerations for all areas of business planning.

Let's look at why most small businesses fail:  Most business owners get into business and are doomed from the get go because they had no plan. In many cases, they enter the business with:

• Lack of an executable business plan
• Lack of capital
• Lack of resources and back up plans
• Poor or no budget
• And the biggee: No plan in place for basic insurance and retirement.

One of the joys of being independent is that you are, well, independent.  While being free of corporate limitations and office politics, one still must provide for themselves for those days that things just don't go perfectly.
And what happens when you can't work?  Ahh, there is the difference between those that prepare to run their business, and the others that just hope for the best.

Marc Jacobson, President of Marc Jacobson and Associates out of Northbrook, Illinois should know. He has helped countless business owners provide for successful business using 5 components as a guideline to basic business planning.

Insurance is one of the critical "must haves" for any smart entrepreneur who understands the gravity of being a service provider. As an insurance specialist and a highly successful entrepreneur himself, Marc shares his insights on a step by step consideration for today's entrepreneur. He suggests you start with 4 components in this section of your business plan:

1.    Basic health insurance
2.    Disability Coverage
3.    Retirement plans
4.    Long term care  

Basic Insurance:

The key here: Run your business like a business:  It is incumbent upon you as the owner to work in order to make sales happen, so basic health insurance is a critical to your business strategy.  Besides catastrophic coverage, health insurance is critical for anyone working; in the event you need it is an important component of your overall business strategy.

Insurance must be a basic expenditure. Check out what types of insurances may be necessary for your type of business.  Some services require specialized coverage, so do your homework.

Disability:

Here's an area of coverage most entrepreneurs need to clearly understand.  Unless you have a huge trust fund or a great team to support you, most business owners are their own source of income, meaning if you can't work, you don't' get paid. A slip on the ice or a health condition could slam dunk your whole year.  Having disability coverage takes the pressure off of no income for several months by setting up a policy that provides financial support until you are up and working again.  In today's world, you can't afford not to have this coverage.  A good policy is just part of your fixed expenses and must be a budget item in your business plan.

Retirement Plans: 

It is a staggering fact that most American workers have no provision for retirement or a plan to fund retirement savings.  A large percentage of independent business owners do not have a consistent system or strategy to build wealth for their retirement.   Days go by and without a regular contribution to a wealth plan, and many will face the day that they have worked for many years, but outlived their financial capacity.  Jacobson advises that you immediately implement a plan, no matter how small, to get you on target to meet your financial needs for those years we should be enjoying life and working by choice and not by need.

And in the long run....Medicare and Long Term Care:
The aging of America is evident.  Statistics indicate that as we age, that great nest egg we worked so hard to build may be used up due to a debilitating injury, or the onset of poor health.  This is a great time to begin providing for a situation in which you can't work and putting a financial strain on your spouse, family and friends for a long term care issue should be avoided at all costs.

Don't over look these mundane but vital facets of your business planning.  Be sure to budget for taking care of yourself so you can take care of your business.  


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About the author:
Terri Murphy is one of the industry's leading consultants and business coaches on the integration of traditional marketing and communication with today's Web and Internet tools. Terri is the President of Terri Murphy Communications, Inc., and the CIO of U. S. Learning, Inc. in Memphis, TN.  She is a frequent spokesperson and presenter for sales industries nationwide. For more information on her programs and products, contact her at: Terri@TerriMurphy.com or 901-767-0000.