GLENVIEW, IL — January 16, 2009 — In this down economy, hundreds of thousands of Americans are unemployed and looking for work, but many have decided it's time to start a business of their own, rather than seek another job.
While there are many sources of assistance for new entrepreneurs, a recent study by online payroll service SurePayroll has determined that new entrepreneurs ought to consider asking business owners of existing businesses for advice.
"The best advice an entrepreneur can get is from an entrepreneur who has been in business for a number of years," says Michael Alter, President of SurePayroll. "Books and consultants will only get you so far. New entrepreneurs who speak with existing business owners prior to starting a company have a much higher chance of avoiding common and, maybe, not so common pitfalls that may hinder success."
According to Alter, the results suggest that people are more willing to help each other out during hard times. SurePayroll's recent survey of nearly 300 small business owners found that approximately 91% of respondents would be open to potentially advising new entrepreneurs who are starting a business.
Empathy appears to be one factor driving entrepreneurs' willingness to offer free advice. Indeed, 8% of respondents indicated that a lay-off by another organization had previously played into their own decision to start a business. The idea of reciprocity and having had a mentor of their own was also a common thread among survey participants.
Comments from business owners willing to help included the following:
Business Advice for New Entrepreneurs
Small business owners who completed the SurePayroll Main Street Insights Survey offered these suggestions to new entrepreneurs:
Do the research about your industry: "Read a lot of books and talk to others who are already successful at it."
"Have a back-up plan."
Enhance your customer service: "Understand that independent business people do not always have customer service as their strong point. I think that is the reason for the high failure rate of most start-ups (as well as undercapitalization).
Control your growth: "Get some accounts, get used to the work load, then get more accounts, get used to the work load, etc. Many companies that grow too fast go out of business because they can't handle the work load."
Be frugal: "Think about what you are going to cut back on and what you need, no matter what the economy is doing to help make your decision."
Think about financing: "Make certain you have enough start-up cash to survive one year."
"Don't underestimate the cash flow needs of a new business. Make sure, especially in today's environment, that you have sources of capital available."
"Contact sources such as tax advisors and business start-up agencies who may know about different grants/loans."
Distinguish yourself: "Make sure that you are providing a service that is unique amongst the competition."
Get advice: "If possible, have a mentor who is level-headed and will be honest and frank with you; they will be a fantastic resource, especially if they are neutral and promise to tell you what you need to hear, not what you WANT to hear. Get a CPA YOU TRUST!!!"
Be passionate: "Consider whether your new venture is something you are extremely passionate about. You must take a few hits before success happens. This economy is a real test of your perseverance."
Negotiate: "Office space is relatively cheap at the moment, so negotiate very hard on the cost for your business location. That can save a lot of money as you try to grow your business."
Hire carefully: "Hiring good staff people is the most important thing you can do. Then let other companies like SurePayroll take care of the things you are not the best at to free you up to do the things you are good at."
Obtain liability insurance: "In harsh economic times people look to cash in on ways they normally would not think about. Be sure you protect yourself with insurance."
About SurePayroll:
SurePayroll is the online alternative to ADP® and Paychex®. SurePayroll's service and team members are dedicated to providing an easy, convenient online payroll service at a price small business owners can afford. Tens of thousands of customers rely on SurePayroll to process payroll wherever they want in as few as two minutes.
In addition, SurePayroll offers small businesses solutions for managing 401(k) plans, health insurance, workers' compensation, HR compliance and employee screening. For accountants and banking partners, SurePayroll provides private-label services that enable them to offer payroll processing to their small business clients.
Over the last decade, SurePayroll has received numerous prestigious awards for its innovative technology and outstanding customer service, including recognition from PC Magazine, Inc. 500, Accounting Today, the Stevie Awards and many others.
For more information, you can visit http://www.surepayroll.com, call 877.954.7873 or follow us on http://twitter.com/SurePayroll.
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