What you need to start a business

I had a meeting recently with a prospect who is considering a small service startup. He was looking into buying business plans and hiring staff and a lot of other things that he didn't really NEED to do before proving that the concept had legs.

It got me thinking. You need:

1. The Will
   Going out on your own is living without a net. Any idea you have in your head that "you are your own boss" is an absolute fallacy. Yeah, you can take a Tuesday off but more often than not, you will work longer hours and harder than you are now. You will not be paid for 40% of the time and effort you devote to your business. Instead of having one or two bosses - you will gain twenty...or fifty. Every one of your customers is your boss. You will not be able to spend 10 minutes without thinking about your business. If you can, do it part time. If not, get ready for roller coaster ride baby cuz your business will CONSUME YOU...and it's a good thing. :) If your business doesn't consume you, then you don't have the will. Stay in the cubicle.
   
2. The Skills
   You had better be adept at what you do...and you better be able to sell it. Anyone who tells you that "they aren't a salesman" shouldn't even think about starting their own business...or you better have someone really close to you who believes in YOU enough to risk their own livelihood to sell on your behalf.
   
3. Money Smarts
   Pardon the pathetic white-guy Diddy shout out but it's "All about the Benjamins". You are in business to make a profit. The money you put out better bring money back in. Buy QuickBooks or hire an accountant to help you out. You can love what you do (I DO!) but this is what you do to put a roof over your head and keep your family fed...otherwise, it's a hobby. The IRS thinks so too.
   
4. Lateral Vision
   Five year plans are terrific mental exercises and they're fine for goal setting but being able to adapt your vision in order to capitalize on opportunities is huge. The story about the guy who believed in his dream when no one else did makes for a great Disney movie but there are thousands of businesses that bit the dust because the owner wouldn't adapt. Sell what they're buying.
   
5. Check Your Ego
   Owning your business isn't about you. It's about your meeting your clients needs and getting paid for it. That's it. If you think owning your business is all about driving a Lexus and doing whatever you want, then will be headed straight back to monster.com for your next career stop.
   
6. The Basics
   A cell phone, a laptop, a website, an eFax number and a business card. That's it. Don't have a Herman Miller? Use a folding chair. Don't have a storefront? Sell over the internet, direct response or by appointment. Don't blow money on stuff you don't need. If you need something, rent it or borrow it if you can - or sub out the work. Don't invest in equipment until you know that piece of equipment is making you money and WILL CONTINUE to make you money. Forget about leasing the Lexus.

I've read startup proposals where the owner proposed to pay himself a six figure salary. I've read business plans where they've budgeted in excess of $30,000 in computers and software where clearly, a couple of grand would have covered the need.

Work hard. Save your money. Build a client base - prove your concept. Promote. Promote. Promote. Your job in the beginning is to survive and do what you HAVE TO do. You will make mistakes and you will have to adjust and learn not to make those mistakes again.

The worst thing you can do is look at going out on your own as a newfound freedom. This isn't carte blanche to go nuts with your credit card with the pretense that "you need this for your business" (how is a 42" plasma TV a business expense?) or to sleep in til noon because you don't have a boss looking over your shoulder.

You better have the discipline to manage yourself, your money and your time. Otherwise, you'll be looking for another job soon...along with a ton of debt incurred during your "vacation".

If you're not making money - you don't eat. Simple as that.

Finally, your business may succeed or it may fail but the contacts you make and the customers you serve are the key to your livelyhood - now and in the future. Don't be foolish in the way you treat them, their business or their money. You never know where your next opportunity is going to come from. People notice success and they want to partner with a winner.

Think you've got what it takes? Then give it a shot, have fun and hang on!